If the death, disability, or major health trauma of a key person results in a reduction of business revenue, profit or value, the business owners may be faced with one or more of these alternatives.


🛑 The problems here are:

 ❓ Is there a suitable on staff replacement available?

❓ How long will it take to train the replacement?

❓ How long will it take the replacement to become fully effective?

💡 Because it can take anything up to 12 months to train a new key person to full effectiveness.

💡 Resulting in business loss of  revenue, profit and value in the interim.

❓ How much of the income or profit is the key person responsible for in the areas of

🧔🏻 Management

👧 Sales/Relationships

👩 Specialist tasks?

        • 💡* Specialist Tasks are those that require highly specialised skills in their performance such as in the areas of manufacturing, design, advisory and service, from which revenue is derived and which skills are difficult to replace

❓How can the loss to the business be quantified? 🕵🏻‍♂️ This requires a specialist Key Person Protection adviser 🕵🏻‍♂️  LEARN MORE

❓ What if the key person is also a business owner?

💡  Such a loss will affect –

📌The shareholding.

📌 Shareholder loans.

📌 Shareholder current account balance.

❓ What if the business has contracts that incur non-performance penalties?

❓ Can the contract still be completed within the terms?

❓ Is there a reserve fund to cope with possible penalties?

 ❓ What if the key person has given a personal guarantee to support a business loan?

💡 If a financier perceives that the loss of a key person reduces the viability of the business, they are likely to demand partial or full repayment of the debt.

💡 Most personal guarantees to support a business debt are joint and several – a financier will attack all or any of the guarantors for repayment, either full or partial.

💡 In addition, personal guarantees survive a death and are a prior charge on the estate of the guarantor.

💡 Resulting in the estate of a deceased guarantor cannot be probated until the terms of the guarantee have been dealt with to the satisfaction of the financier and the guarantee extinguished. This can take months, or in an extreme case, a year or more.

💡 A financier is like electricity – they will take the easiest path to the money, whether it is private or business insurance proceeds (Including mortgage protection insurance), private funds, or even the family home.


CONTACT me to see if your business qualifies for a complimentary Financial MRI Scan. LEARN MORE about a Financial MRI Scan

🔑A ten point guide to financial security and peace of mind in 60 minutes – at my cost.

 DOWNLOAD – a complimentary copy of my E-book, “Learn How Key Person Insurance Can Save Your Business.”


09 44 66 057.  – 021 960 537 – Info @ Wealthbuilders.co.nz