Yes. Most panel insurers allow multiple key persons on one policy or through linked separate policies. The right structure depends on each person's role, the documented purpose of each cover, and the tax position.
Multi-life key person arrangements are common in partnerships and family businesses. The choice between one policy and multiple policies turns on flexibility, administration, and tax record-keeping.
Single policy vs separate policies: the trade-off
| Factor | Single multi-life policy | Separate policies per key person |
|---|---|---|
| Administration | Simpler (one renewal, one premium notice) | More renewals and notices |
| Customisation | Each life has its own sum insured but the structure tends to share features | Each life has its own structure, cover mix, waiting periods, benefit periods |
| Tax record-keeping | More complex if some lives are revenue purpose and others capital | Cleaner: each policy has its own documented purpose |
| Underwriting | Each life underwritten independently | Same: each life underwritten independently |
| Cost | Sometimes marginally lower administrative cost | Sometimes marginally higher administrative cost |
| Ownership flexibility | One owner for all lives | Different owners possible per policy (e.g. cross-owned in partnership) |
When separate policies usually fit better
Separate policies make sense where:
- The lives are insured for different purposes (one revenue, one capital). Tax documentation is cleaner with separate policies.
- The lives need different cover mixes (one needs Life + TPD; another needs Life + TPD + Trauma + Business Expenses).
- The ownership needs differ (cross-owned in a partnership where each partner insures the others personally).
- The lives are insured at different sums insured with very different premium profiles.
- A buy/sell structure requires distinct policies per shareholder (see the buy/sell FAQ).
When a single multi-life policy usually fits better
A single policy makes sense where:
- All lives are insured for the same purpose (e.g. all revenue replacement, or all debt protection).
- The administrative simplicity outweighs the customisation flexibility.
- The business prefers one renewal cycle and one premium debit.
- All lives are similar in age, role, and contribution profile.
How the panel supports multi-life arrangements
Most panel insurers issue one Policy Schedule per life insured but allow these schedules to be grouped under a single Policy Owner (the business). The premium is calculated per life, then aggregated for the business.
- AIA Priority Protection PDS (Version 32, 9 November 2025) supports multiple lives under Ordinary Plan, each with their own benefit and premium.
- Acenda Insurance PDS (27 September 2025) supports multi-life arrangements under one Policy Owner; each life can have its own cover mix.
- Zurich Wealth Protection PDS (1 November 2025) supports multi-life under partnership and company ownership.
- TAL Accelerated Protection PDS (12 December 2024):
Individual, Trust, Company/business, Joint ownership all support multi-life.
- OnePath OneCare PDS (October 2025) supports multi-life under company, trustee, or other legal entity ownership.
Underwriting is always per life
Even on a single multi-life policy:
- Each life completes a full medical questionnaire.
- Each life is rated separately for age, health, occupation, smoking status.
- A loading or exclusion on one life does not affect the others.
- A declined cover on one life does not invalidate the cover on other lives.
- Each life is renewable separately if circumstances change.
Cross-ownership structures for partnerships
In a partnership, the common structure is cross-ownership rather than business-ownership:
- Partner A takes out cover on Partner B, owning the policy personally.
- Partner B takes out cover on Partner A, owning the policy personally.
- On death of Partner A, the proceeds are paid directly to Partner B, who uses them to buy out Partner A's estate.
Cross-ownership preserves the ITAA 1997 s118-37(1)(a) CGT exemption for the original beneficial owner (each surviving partner receives proceeds from a policy they personally owned). It is the standard structure for buy/sell-funded partnerships. See ATO TR 2003/9 for the framework.
Practical considerations
- Maintain a key person register: a simple document listing each insured person, sum insured, purpose (revenue/capital), and policy reference. Update annually.
- Review on personnel changes: when a key person leaves, the cover on that life must be addressed (cancel, transfer, or repurpose). See the 'what happens if the key person leaves' FAQ.
- Document purpose per life: each life's cover should have a documented purpose tied to the ATO TR 2009/2 framework. The documentation supports the tax position if challenged.
Regulatory anchors
- Life Insurance Act 1995 (Cth) governs all panel cover.
- Insurance Contracts Act 1984 (Cth) governs the contract terms.
- ATO TR 2009/2 for tax treatment.
- ITAA 1997 s8-1 for premium deductibility.
- ITAA 1997 s118-37(1)(a) for CGT exemption on proceeds.
This is general advice only. Multi-life structuring and ownership choices depend on the business structure, partnership agreements, tax position, and each key person's role. Discuss with a registered tax agent and a licensed insurance adviser before structuring multi-life cover.