Key Man Insurance

Reviewing business costs

In January 2010 Vantage Financial was referred into a company that were a client of fellow Vantage Group company; Vantage Performance.

The client was a privately owned business with three partners.

They engaged Vantage Performance to assist them in improving their business performance. Part of the Vantage Performance mandate was to review all costs associated with the business. One of those costs was a large key man insurance policy, which had been in force for some time, and had an annual combined premium of $100,000 p.a.

Reviewing policy structure & increasing benefits

Upon reviewing the policy we identified the opportunity to not only reduce the cost of this key man insurance policy but also increase the benefits in the insurance contract.

Using our assessment and pricing techniques, we were able to save them approximately 20% off their annual premium.

We also reviewed the structure of the policies and adjusted them in a way that alleviated their short term cash flow issues.

Due to the age of one of the Directors and the complicated nature of the policy, extensive research was done across all insurance companies in the market to source a company that would cater to this difficult contract.

Saving money for our client

Although it took over two months of paperwork, discussions and medicals to finalise and implement our recommendations, we saved the company $16,000 in initial costs and $25,000 off their annual premium.

This proves the value of reviewing clients and their business. As in any market, pricing of a product may vary from time to time and this is also the case with insurance.