Key Person applications need business documentation (audited accounts, valuations, structure documents) on top of standard personal underwriting evidence (medical history, financial position, occupation). The exact list depends on the sum insured, the cover type, and the insurer's forward-underwriting framework.
This is general advice only. Engage a licensed insurance adviser to coordinate the application and a registered tax agent to confirm capital-versus-revenue purpose documentation.
Business documentation
All panel insurers require business evidence at financial-underwriting bands. Standard documentation:
- Audited financial accounts for the prior 2 to 3 years (AIA, OnePath, Acenda, Encompass typically request 3 years)
- Business Activity Statements (BAS) for current and prior periods
- Tax returns of the business entity and the key person
- Key-person valuation report prepared by an accountant or business valuer, showing gross remuneration plus share of net profit attributable to the key person
- ASIC extract for company-owned policies; partnership deed for partnership-owned; trust deed for trust-owned
- Shareholders agreement and buy/sell agreement where applicable
- Bank loan documents for loan-guarantee or debt-protection cover
- Job description for the key person, including specialist qualifications, licences, and client relationships
Panel evidence requirements:
- AIA Business Safeguard Forward Underwriting requires "a written re-evaluation of the business from a qualified accountant or valuer" for buy/sell, share purchase, or business succession purposes, "a written re-evaluation of your value to the business from a qualified accountant or valuer" for key person purposes, and "the increase in the amount of the business loan and other particulars about the loan" for loan guarantee purposes (AIA Priority Protection PDS 9 November 2025, Section 8.12, page 157)
- Zurich requires proof for business cover events including key person, loan/guarantor, and buy/sell increases (Zurich Wealth Protection PDS 1 November 2025)
- OnePath requires "the net value, assets and liabilities of the business and the life insured's financial interest in the business for the last three years" and "details of the business results for the last three years" (OnePath OneCare PDS 1 October 2025)
- Encompass requires "financial evidence satisfactory to us that supports the increase requested, proof of the personal or business event" (Encompass Protection PDS 26 September 2025)
- Acenda requires "company minutes, ownership (buy sell) agreements, audited company accounts and tax returns, or such other documents or evidence as we may require" (Acenda Insurance PDS 27 September 2025)
Personal documentation for the key person
All panel insurers require standard application evidence on the life insured:
- Completed personal statement covering medical history, lifestyle, occupation, and family medical history
- Identification (driver's licence or passport)
- Occupation details including duties, working hours, and any hazardous activities
- Smoking status and details of any high-risk hobbies
- Income evidence (group certificates, individual tax returns, business profit share)
Medical evidence by sum insured band
Medical evidence scales with the sum insured. Approximate panel thresholds:
| Sum insured band | Typical medical evidence |
|------------------|--------------------------|
| Under $1 million | Personal statement only |
| $1 million to $2.5 million | Personal statement plus blood tests, urinalysis |
| $2.5 million to $5 million | Add medical examination, ECG |
| $5 million to $10 million | Add full GP reports, specialist reports for any disclosed conditions |
| Over $10 million | Full financial and medical underwriting, often with senior underwriter review |
Forward-underwriting allowances under AIA Business Safeguard and Acenda Business Safeguard Option reduce future medical requirements for business-event-triggered increases.
Tax purpose documentation
At application, prepare an accountant's letter documenting:
- Capital or revenue purpose classification under ATO Taxation Ruling TR 2009/2
- Premium deductibility position under ITAA 1997 s8-1
- Intended use of proceeds at claim (buyout, debt repayment, recruitment, revenue replacement)
- CGT position for capital-purpose cover under ITAA 1997 s118-37(1)(a)
Keeping this letter on file at application (not just at claim) evidences intent and protects the documented tax treatment from ATO re-characterisation. Cross-references: ATO TR 2003/9 (life insurance policies), TD 94/35 (buy/sell premiums), TR 95/35 (IP premium deductibility), TR 85/36 (insurance proceed receipts).
Inside-super additional documentation
If the cover is to be held inside an SMSF or retail super fund:
- SMSF trust deed confirming insurance powers
- SMSF investment strategy referencing the insurance holding
- Member benefit nomination (binding or non-binding)
- Confirmation of sole-purpose-test compliance under SIS Act 1993 s62
Note that inside-super TPD is restricted to any-occupation under SIS Regulation 4.07D since 1 July 2014, and Critical Illness inside super is generally not available for new cover under the sole-purpose test. If the business needs own-occupation TPD or Critical Illness on a key person, structure outside super.
Duty to take reasonable care
All evidence must be complete and accurate. Under Insurance Contracts Act 1984 s20B (effective 5 October 2021), the policy owner and life insured must take reasonable care not to make a misrepresentation. Remedies for breach under s28A to s28D are proportionate for innocent or negligent misrepresentation, with rescission only available where fraud is established. The duty under s29 (utmost good faith) continues for both parties throughout the policy life.