What types of coverage are included in key person insurance policies?

Australian key person insurance policies typically offer several types of coverage to protect businesses comprehensively. The main coverage types include Death cover, which provides a lump sum if the key person dies; Total and Permanent Disability (TPD) cover, which pays out if the key person becomes permanently disabled and unable to work; and Trauma or Critical Illness cover, which provides benefits if the key person suffers a serious illness such as heart attack, stroke, or cancer. Some insurers also offer Temporary Disability or Income Protection options that provide monthly benefits to replace lost revenue during a key person's temporary absence. Policies can be structured for either revenue purposes (to replace lost income and maintain day-to-day operations) or capital purposes (to cover loan repayments or buy out the key person's share of the business). Most policies allow businesses to combine multiple coverage types and can cover multiple key persons either on one policy or through separate policies, depending on the insurer and business requirements. The specific inclusions and optional extras vary between insurers.