Protecting Your Business with Key Person Cover from Fidelity Life
Key Person Cover from Fidelity Life provides financial protection for businesses by helping replace key staff members unable to work due to sickness or injury. Established businesses and newly self-employed individuals can benefit from this cover, with options for benefit amounts, waiting periods, and benefit payment periods. Premiums are age-rated and flexible in terms of payment frequency. The Platinum Plus Key Person Package offers additional features like total disability benefit and recurring claim benefit.
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Key Person Cover Fidelity Life: Protecting the NZ Way of Life
About the Key Person Cover Key Person Cover contributes towards replacing a key member of your staff for one or two years, if that person is unable to work due to sickness or injury. It helps you put measures in place to keep things running smoothly until your key person gets back on board. This benefit can be used in any way your business needs it. Key Person Cover is designed for established businesses that have been in operation for over three years. The Key Person Cover includes some important benefits at no additional cost as well as an optional benefit that the business can choose for which an additional premium is payable.
Key Facts Ages Established businesses can take out the Key Person Cover if the insured person is aged 16 to 59 inclusive. For newly self-employed, the Key Person Cover is available if the insured person is aged 20 to 59 inclusive. Cover ends at age 65. Premiums Your Key Person Cover premiums are age-rated Premiums are fixed for one year at a time and will normally increase in line with age. You can pay premiums fortnightly, monthly, quarterly, half yearly or yearly
Key Facts Cover Established businesses can apply to insure each key person up to a maximum benefit of $30,000 per month. Newly self-employed can apply for a maximum benefit up to $4,000 per month. Applications are subject to normal medical and financial assessment. Wait period This is the period for which the business waits before Fidelity Life starts paying a claim. Options are 2, 4, 8, or 13 weeks. Benefitpayment period This is the maximum periodforwhich FidelityLifewill pay a claim. Established businesses can choose froma one ortwo year benefitperiod. Fornewly self-employed, the benefitperiod isone year.
General Established business For an Established business this cover is an agreed cover No financial evidence is neededat claim time. Available forOccupational Classes 1, 2 and 3. A business can insure a number of keypeople inthe same business. Coverends when the insuredperson is no longer employed in the business. Key Person Cover is typically restricted to established businesses with 5 to 7 employees, or a partnership. Newly self-employed For a person who is newly self-employed in a new business, the cover is an agreed value cover for the first three years and then changes to an indemnity cover. At the third anniversary the cover can be converted to an Income Protection Cover Agreed Value or an Income Protection Cover Indemnity. See new to business policy upgrade below. If you do not convert your cover then the Key Person Cover will continue with a one year benefitperiod,on an indemnitybasis.
The Platinum Plus Key Person Package Standard Features Total disability benefit - payable monthly in advance for up to 12 months once waiting period has expired. Partial disability benefit May be available following period of total disability and return to work in a reduced capacity. Recurring claim benefit If insured person suffers a relapse within 12 months of returning to work, the waiting period is waived. Benefit period reset The package may be reset if insured person suffers same injury within 12 months. Waiver of waiting period Waiting period can be waived in certain circumstances.
The Platinum Plus Key Person Package Optional Features Waiver of Premium Cover - While a disability or partial disability benefit claim is being paid for an insured person with the waiver of premium cover, the premiums due on the policy after the waiting period ends will be waived and premiums due and paid during the wait period will be refunded. This cover requires payment of an additional premium. Inflation Protection - The business can choose to have the cover increase to a maximum of $20,000 per month by the greater of 2% or with the Consumer Price Index, regardless of health, to ensure the benefit keeps pace with inflation.
What is a Key Person? CEO Operation s Human Resource Sales Finance Business Support Distribution Marketing ICT A responsible for generating at least 20% of a company s income. key person is someone who is Someone who holds a significant position in the company, such as a CEO or a CFO.
Key Person Impactonakeyperson IfakeypersonisinsuredunderbothKey PersonCoverandapersonalIncomeProtectionCover,then: The personal Income Protection Cover payment may be reduced if the key person continues to receive incomeor profitsharefromthebusiness. PaymentsunderKeyPersonCoverarenot reducedbyanyother benefit or monies Whoisnewlyself-employed? A personwho isnewly self-employed inanewbusiness that hasbeen operating for at least twelve months and theyhavebeeninthatbusinessfor lessthanthreeyears. Thenewlyself-employed must: haverelevantbusinessexperience tothenewbusinessbeingestablished/purchased begeneratingaminimumof 20%of thebusinessrevenue haveadirectshareholdinginthebusinessof atleast50% havebeeninthenewbusinessfor lessthanthreeyears not beactivelyinvolvedinanyotherbusiness(asamajorshareholderor arm slengthemployee) not have any other income protection/mortgage protection or business expenses cover in place with Fidelity Lifeor anyother company.
Key Person Newtobusinesspolicyupgrade At thethirdpolicyanniversary thecover canbeconvertedtoaretail IncomeProtection Cover Indemnity with a Declaration of Good Health, or converted to an Income Protection Cover Agreed Value with a Declaration of Good Health and financial evidence. Any conversion after this three year period will requirefullunderwriting. Ownership Key Person Cover must be owned by a company or a person who has an ownership interest in the business. Assessmentrequirements Acompleted applicationformfor eachkeyperson. Acopy of thelatestfinancialstatements. Percentageof businessincomegeneratedbytheKeyPerson.
Note Fidelity Life will not require financial underwriting proof for established businesses if the monthly benefitamount being applied foris not morethan the following: Occupation Class 1 $10,000 per month Occupation Class 2 $8,000 permonth Occupation Class 3 $6,000 permonth Key Person Cover cannot be taken with Business Expenses Cover. Key Person Cover can be combinedwith Rural Key PersonCover in some circumstances.
