Keyman or Keyperson insurance is essential for anyone involved in a business with more than 1 partner (silent or otherwise), or has a ‘Key’ employee.

Keyman essentially pays a benefit if the Key Person in the business died or became disabled and left the business for a prolonged period of time.

The purpose of keyman insurance is to use funds to keep the business profitable on the exit of that individual. This would include paying debt, funding loss of profit, and paying for costs associated with finding a new replacement.

Once you have determined the amounts needed to cover that particular person, the issue of tax comes in. What is and what isn’t taxed when it comes to Keyman insurance?

Below is an easy to follow graph to determine how much tax to take into consideration. Alternatively, you can contact one of our advisers on 1800 989 657 or


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