A guide to life insurance for your business
Empowering doctors to face the future with confidence
Avant understands that doctors face many challenges when setting up their practice, from maintaining daily operations to ensuring long-term business continuity - and we want to help.
One way to protect your practice is by setting up life insurance policies for business purposes as part of a business succession plan or protection strategy.
To support you in navigating the complexities of using life insurance policies to protect your practice, we are introducing the Avant Guide to Life Insurance for your Business.
After reading this eBook, you’ll know:
- What key person insurance, buy-sell agreements and business expense cover is.
- How each type of protection strategy can be set up and the risks they address.
- The different ways insurance proceeds may be used to help protect your practice.
- The potential tax and legal implications that may be relevant to different protection strategies.
Whether you own a practice currently or you are considering starting your practice journey in the near or distant future, this guide provides an overview of the protection strategies you can use to manage the risks that impact the short and long-term viability of your practice.
Key Person Insurance
Key person insurance involves taking out life insurance covers, including life cover, total and permanent disability (TPD) insurance, trauma cover and income protection.
The business owns and pays for these policies to protect its financial position should something happen to a key person.
Business Expense Cover
Business expense cover safeguards operational continuity if an owner becomes too sick or severely injured to work.
It typically covers expenses for office rent, most loan payments, equipment or vehicle leasing costs and utility bills.
Buy-sell agreements
This agreement determines what happens to a business partner’s shares when they depart the business for specific reasons outlined in the agreement, such as retirement, death, or permanent disability.
Usually, the agreement includes an option for the remaining shareholders or partners to purchase the shares of the departing shareholder.
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Privacy statement
Avant Life Insurance, a registered business name of Doctors Financial Services Pty Limited (ACN 610 510 328, AFSL 487758), is part of the Avant Mutual Group which includes Avant Mutual Group Limited and its related entities (Avant). Avant collects, uses and discloses your personal information to communicate with you, conduct our business (including marketing, research and providing Avant products and services) and comply with the law. This may include disclosing information to overseas entities which are not accountable under Australian privacy laws. If you don’t provide your information we may not be able to assist you or provide our products or services. For more information, please read our Privacy Policy at http://avant.org.au/privacy-policy or contact our Privacy Officer at privacy@avant.org.au. By providing your information you confirm that you understand, acknowledge and agree to your information being collected, used and disclosed as outlined above and in accordance with the Privacy Policy, including for receiving marketing from Avant and overseas disclosures. You can contact us at any time if you have any questions or wish to change your consent.
Avant members are eligible for fee-waived personal advice
As a member-owned organisation committed to supporting doctors in their professional and personal lives we are committed to putting our members first.
As part of this commitment, we are waiving the fee for Avant members to have a Statement of Advice prepared by an Avant Life Insurance Adviser.
More information can be found on our Avant Financial Planning Financial Services Guide.
IMPORTANT: ‘Avant Life Insurance’ is a registered business name of Doctors Financial Services Pty Limited ABN 56 610 510 328 (DFS), a wholly owned subsidiary of Avant Mutual Group Limited ABN 58 123 154 898 (Avant). DFS is authorised to provide financial product advice for certain classes of financial products under Australian Financial Services Licence Number 487758 (AFSL).
The information provided in this brochure is meant to convey factual information that could be interpreted as general advice in some cases. General advice is financial product advice that has not considered a person’s objectives, financial situation or needs. Accordingly, you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs before deciding to purchase, terminate, change or continue any life insurance policy or product that you may hold with any provider. Alternatively, you should consider if you need personal advice that considers your objectives, financial situation or needs, including assessing the suitability of any existing life insurance policies you may hold.
Please contact us on 1800 128 268 if you need personal advice or visit our website for the full details of life insurance products that we distribute, including the terms, conditions, and exclusions that apply. Please read and consider the relevant policy wording or PDS and Target Market Determination before applying. MIM-262 01/24 (MIM-233)