The 2015 Business Life Insurance report looks at 31 policies, each rated against each other. The report covers Key Person Insurance, Business Partner Insurance and Business Expenses Insurance.
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Business life insurance is a type of life insurance that is designed to protect the owner of a small business from the financial effects of certain business risks. There are three different types of Business Life Insurance, which can be taken out as a package or bought separately:
We’ve written more to explain each of these in detail in this article.
Canstar compares business life insurance with our unique, sophisticated star ratings methodology that looks at both pricing and features. We present the results with our consumer-friendly 5-star concept, with a 5-star rating signifying a policy that offers outstanding value for businesses.
Some of the features Canstar compares for business life insurance are:
You can compare business life insurance products yourself with the latest star ratings report, linked at the top of this page.
Please note that these are a general explanation of the meaning of terms used in relation to life insurance.
Policy wording may use different terms and you should read the terms and conditions of the relevant policy to understand the inclusions and exclusions of that policy. You cannot rely on these terms to the part of any life insurance policy you may purchase.
Refer to the product disclosure statement (PDS) and Canstar’s Financial Services and Credit Guide (FSCG).
Business expenses insurance: Business life insurance that provides an income stream to cover fixed business expenses such as the office lease and staff wages, if something happens to the main income earner of the business. Usually only available to small businesses with fewer than 5 income-producing employees.
Business partner insurance (a.k.a. buy/sell insurance): Business life insurance that provides a lump sum to the surviving business partner, in the untimely death or disablement of a business partner, so that the surviving business partner can buy out their share in the business.
Duty of disclosure: When someone completes an insurance application, they are required to disclose everything they know about the applicant’s health, occupation, sport activities or other lifestyle risks, and income. If they fail to comply, their application or insurance claims may be rejected by the insurer.
Exclusion: The insurance company may exclude a hazardous sport or activity, which means you will not be covered if you become injured, sick, or die while doing that activity. Learn more about common life insurance exclusions.
Income protection insurance: Personal insurance designed to replace 75% of your income when you cannot work due to a sickness or accident. Some policies also cover you if you can only work in a reduced capacity while you are recouping, such as part-time. Compare income protection.
Key person insurance: Business life insurance that provides an income stream to cover loss of revenue in the event that a key staff member (whom the small business relies on to make money) dies or becomes disabled. Learn more about key person insurance.
Level premium: The premium is calculated and based on your age at the start of the policy. The premium may still increase along with inflation or for a certain occupation category, but not based on your age. Learn about the difference between stepped and level premiums.
Occupation category: Grouping together occupations with similar duties and risk levels.
Premium loading: An insurance company may charge higher premiums if the person being insured falls into a certain risk factor category, such as being overweight, smoking, or having high blood pressure.
Stepped premium: The premium is recalculated (and will usually increase) on each policy anniversary, based on your age at that time. Learn about the difference between stepped and level premiums.
TPD any occupation: You are covered if you become disabled so that you are unable to work in any occupation. For example, a surgeon could become a GP and continue to work and earn an income, meaning they would not be eligible to claim on their TPD cover. Compare TPD insurance.
TPD own occupation: You are insured if you become disabled so that you are unable to work in your own current occupation. For example, if a surgeon could no longer do surgery, they would be eligible to claim on their TPD cover, and the insurance company could not make him become a GP instead. Compare TPD insurance.
Underwriting: The process where the insurance company’s underwriter (the insurer’s insurance provider) assesses your application for insurance cover. They look at your health, occupation, sport activities or other lifestyle factors, and income. The underwriter may accept you as a standard cover (first class rate), offer you special terms for cover, or may reject you outright.
At the time of writing, Canstar has most recently researched and rated the following providers of business life insurance:
Compare business life insurance for yourself using the report linked at the top of this page: