Key Man Insurance Calculator

Our key man insurance calculator estimates cover to protect your business against the death or critical illness of a key employee. The payout can fund recruitment, cover lost profits, or repay business loans.

Enter the key person’s salary and the approximate revenue they generate or protect for the business. Key person insurance pays the business a lump sum on the death or critical illness of an individual whose loss would create significant financial harm — typically a founder, director, or specialist whose contribution is hard to replace quickly. The sum assured is usually calculated as a multiple of salary (up to 10×) or as the revenue attributable to the individual. Premiums are a business expense if the policy is owned by and pays out to the business and is not intended to benefit the key person’s estate. The lump sum helps cover recruitment costs, lost revenue during transition, and business continuity costs. Different tax treatment applies to different policy structures — take advice from an accountant before taking out the policy.