BT has updated its key person income insurance product so that it will now cover more Australian businesses.
Launched in May 2014, BT said the key person income insurance product was developed specifically for business so they can continue to operate in the event key persons become disabled due to sickness or injury.
Now, following direct feedback from advisers, BT has made updates to the original product so that cover can be extended to cover Australian businesses.
According to BT the updates will mean the product is now available for businesses with up to 40 full-time (or part-time equivalent) employees, where it was only previously available to business with 20 full-time staff.
Further BT has expanded the business ownership and income generation percentage criteria for business owners and employees.
Previously to be a key person, the individual needed to be responsible for between 25 per cent and 75 per cent of the business’ gross profit – this has now been increased to 20 to 80 per cent.
Also, the number of key persons eligible for cover has been increased to five.
Commenting on the updates, BT national manager of life insurance products Scott Moffitt said the sudden absence of a key person can have a serious impact on business income and cash flow, causing disruption and uncertainty.
“Key person income gives business owners peace of mind during what can be an intensely difficult period, and we're pleased to be making this insurance solution available to more Australian businesses,” he said.