Information about Key Person insurance is provided as general advice only; nothing in this FAQ takes into account your business's specific objectives, financial situation, or needs. Personal advice (a Statement of Advice tailored to your business) requires a different licensing scope and is not what this brokerage provides.
The brokerage operates under AR number 1244847, AFSL 246623 (Consilium Advice Australia). General advice means factual product information, panel comparisons, and educational content; personal advice means tailored recommendations after a personalised analysis.
What general advice covers
- Factual descriptions of how Life, TPD, Critical Illness, Income Protection, and Business Expenses cover work
- Comparisons across the 9 panel insurers (AIA, Zurich, TAL, OnePath, ClearView, NEOS, Encompass, Acenda, Futura) on definitions, condition lists, sum-insured caps, and policy features
- Explanations of the regulatory framework (Life Insurance Act 1995, Insurance Contracts Act 1984, SIS Act 1993, ITAA 1997, ATO rulings)
- Discussion of common considerations for Key Person ownership structures, capital vs revenue purpose, and buy/sell mechanics
- Pricing-band information and product feature comparisons
What general advice does not cover
- A recommendation that any specific product is suitable for your business
- An analysis of your business's specific tax position, cash flow, or risk profile
- A documented Statement of Advice (SOA) tailored to your circumstances
- Personal-advice obligations under the Corporations Act 2001 Part 7.7A (best interest duty, prioritising the client, conflicts disclosure)
- Tax advice (which requires a registered tax agent or accountant)
- Legal advice on buy/sell agreements, partnership deeds, trust structures, or company constitutions (which requires a solicitor)
The language patterns used in general advice
General advice avoids language that implies personalisation:
| Avoided (personal-advice language) | Used (general-advice language) |
|---|---|
| 'Recommended for you' | 'A common consideration' |
| 'Based on your circumstances' | 'For an illustrative business' |
| 'You should buy this product' | 'You may wish to consider' |
| 'This will save you money' | 'May be more cost-effective in some scenarios' |
| 'Tailored to your needs' | 'Designed for general business use cases' |
The terms 'illustrative', 'common consideration', 'general guide', and 'may suit' indicate general advice. The terms 'recommended for you', 'tailored', and 'personalised' indicate personal advice and are not used.
Before acting on Key Person information
Before taking out cover, you should:
- Consider whether the information is appropriate for your business circumstances
- Read the relevant Product Disclosure Statement (PDS) issued by each insurer in detail
- Consult an accountant or registered tax agent on the capital vs revenue purpose characterisation under ATO TR 2009/2
- Consult a solicitor on any buy/sell agreement, partnership deed, or trust structure documentation
- Consider whether an SOA from a personal-advice licensee would give you certainty on suitability
Why this matters for Key Person
Key Person insurance is unusually structure-sensitive. The same Life Cover can be:
- A deductible business expense (revenue purpose) with assessable proceeds
- A non-deductible business expense (capital purpose) with proceeds qualifying for the CGT exemption under ITAA 1997 s118-37(1)(a)
- A fringe benefit under the Fringe Benefits Tax Assessment Act 1986 (where the structure is mishandled)
- Subject to anti-avoidance scrutiny under Part IVA of ITAA 1936 (where artificial structures are used)
The right answer for your business depends on your legal form (sole trader, partnership, company, trust, SMSF), your tax position, the proportion of capital vs revenue purpose served by the cover, and your buy/sell, succession, and estate planning.
General advice cannot resolve these questions; the structuring decision must come from your accountant, solicitor, and a personal-advice insurance adviser working together.
Panel insurer issuer details
The panel insurers issuing the products discussed in IMFL's general advice are:
- AIA Australia Limited ABN 79 004 837 861 AFSL 230043 (Priority Protection PDS)
- Zurich Australia Limited ABN 92 000 010 195 AFSL 232510 (Wealth Protection PDS); same legal entity also issues OnePath OneCare
- TAL Life Limited ABN 70 050 109 450 AFSL 237848 (Accelerated Protection PDS)
- ClearView Life Assurance Limited ABN 12 000 021 581 AFSL 227682 (ClearChoice PDS)
- NobleOak Life Limited ABN 85 087 648 708 AFSL 247302 (NEOS Protection PDS; also Futura Protection PDS)
- Nippon Life Insurance Australia and New Zealand Limited ABN 90 000 000 402 AFSL 230694, trading as Acenda (Acenda Insurance PDS; also Encompass Protection PDS)
Where a super version is offered, the trustee is a separate legal entity:
- AIA Insurance Superannuation Scheme No 2 (AIA-related trustee)
- TAL Super sits within the Retail Division in the Mercer Super Trust ABN 19 905 422 981
- OneCare Super issued by Brighter Super Trustee ABN 94 085 088 484 AFSL 230511
- ClearChoice Super issued by HTFS Nominees Pty Limited ABN 78 000 880 553 AFSL 232500
- Acenda Insurance (Super) issued by Equity Trustees Superannuation Limited ABN 50 055 641 757 AFSL 229757
- Futura Protection Super issued by Diversa Trustees Limited ABN 49 006 421 638 AFSL 235153
Common considerations
- The General Advice Warning above continues to apply to every section of this FAQ.
- IMFL is a panel broker with no ownership tie to any panel insurer. Commission disclosure is provided in the Financial Services Guide.
- Information is current at the date of writing; PDS terms and panel composition can change. Verify the current PDS before applying.
- This brokerage does not provide personal advice on Key Person insurance. Where personal advice is needed, engage a licensed personal-advice adviser.
Regulator anchor
- Corporations Act 2001 (Cth) Part 7.7A (general vs personal advice; best interest duty applies to personal advice only)
- ASIC Regulatory Guides RG 175, RG 244, RG 274 (sales practices)
- Life Insurance Act 1995 (Cth) governs the contract
- ATO Tax Rulings TR 2009/2, TR 2003/9, TD 94/35 govern tax treatment
- AFCA (afca.org.au) handles external dispute resolution