Life & Risk Insurance
In most businesses the most valuable asset is the people. Life and risk insurance protects business owners, directors and key employees against the financial consequences of death, total disability, serious illness and loss of income. Ardent does not advise on or arrange this cover: we refer you to MBS Insurance, a life insurance advice specialist, which does both under its own licence.
Lump sums and income protection for owners and key people
Our life insurance partner
Advice and cover from MBS Insurance
Ardent does not provide advice on, or arrange, life insurance. We can refer you to MBS Insurance Co Pty Ltd, a Corporate Authorised Representative of MBS Advice Licence Pty Ltd (AFSL 536983), which will provide any advice and arrange cover under its own licence. We may receive a referral fee. See our Financial Services Guide for details.
What a client says about Ardent
I deal with Sophie Hudson and have been for a few years now. Sophie is always super helpful and can explain things to me in "my language", which gives me peace of mind when making decisions regarding my insurance. Super efficient and very easy to deal with.
Life & Risk Insurance FAQ
Life insurance pays a lump sum on death or terminal illness. It is a capital benefit used to pay debts, fund succession and provide for dependants. Income protection pays a monthly benefit (generally up to 70% of pre-disability income) while you are unable to work due to illness or injury. It replaces income and funds your ongoing living and business costs during recovery. They serve very different purposes. MBS can look at your income, debts and business obligations and advise on the right level of each.
A buy-sell agreement (sometimes called a shareholders' agreement) is a legal arrangement that dictates what happens to a business owner's share if they die, become disabled, or are otherwise unable to continue. Without insurance funding, the remaining shareholders must find cash to buy out the departing owner's estate, which often forces a distressed sale of the business or brings in an unwanted new shareholder. Life and TPD insurance owned by the business or cross-owned by shareholders provides the cash to fund the buyout when the trigger event occurs. MBS can work with your legal and financial advisors so the insurance structure matches the agreement.
It depends on who owns the policy, the type of cover and what it is for. Ardent does not give tax advice: your accountant or tax advisor can confirm the treatment for your circumstances, and MBS can work with them when cover is set up.
Life and risk cover is worth reviewing regularly, and after any material change: a new business acquisition, additional debt, a change in shareholding, a significant increase in revenue or a change in personal circumstances. Cover amounts that were appropriate five years ago may now be well under the mark, for example key person sums insured based on old revenue figures, or buy-sell values that no longer reflect what the business is worth. MBS can review your cover with you.