Key Person Insurance :: Calculators
SHARE

Share this calculator!

Key Person Insurance Keyperson Insurance Calculator

Estimate how much keyperson insurance your business may need to protect against the loss of critical staff. This calculator considers profit contribution, debt exposure and replacement costs to guide appropriate life, TPD and trauma cover.

'Calculator results are estimates only and not quotes. Actual quotes will be provided by licensed brokers after you submit an enquiry.'

1. Business inputs
2. Key people
3. Results
4. How it works

Business inputs

Used to estimate profit at risk if a key person is lost.
Capital purpose leans toward debt / balance-sheet protection. Revenue purpose leans toward profit / continuity protection.

Key people

Add each person whose loss would materially affect business revenue, debt support or continuity.

Input summary

Business name
Industry
Annual turnover
$0
Gross profit margin
0%
Purpose
Debt to protect
$0
Disruption period
0 months
Buffer / rounding
0% / $0
Key people entered

How the estimate works

Capital purpose

Leans more heavily toward debt support, lender confidence, balance-sheet protection and long-term structural adjustment.

Revenue purpose

Leans more heavily toward lost profit, continuity costs, replacement, client disruption and short-term business performance.

Balanced

Blends both capital and revenue drivers for businesses that want one broad planning estimate.

Calculator summary

$0
Total Life-style keyperson cover
$0
Total TPD-style keyperson cover
$0
Total Trauma-style keyperson cover

How to use our Keyperson Insurance Calculator

Our Keyperson Insurance Calculator helps Australian businesses estimate an appropriate level of key person insurance cover for people whose death, permanent disablement or serious illness could affect profits, client continuity, debt servicing and overall business stability. It is important because underinsuring can leave cashflow, loans and succession plans exposed, while overinsuring can increase premiums and strain budgets. The calculator provides planning estimates for life-style, TPD-style and trauma-style keyperson cover, based on disruption and financial impact assumptions you enter.

How to complete the form for the best result

1. Business name (optional)

Enter a label to identify this scenario, especially if you plan to compare multiple estimates.

2. Industry

Select the closest industry to help contextualise the scenario for later discussions with your adviser or insurer.

3. Annual turnover (dollars)

Use your most recent full-year figure, or a realistic forward estimate if revenue has materially changed.

4. Gross profit margin (percent)

Enter gross profit margin, not net margin. This helps estimate profit at risk during the disruption period.

5. Business debt and liabilities to protect (dollars)

Include loans, director guarantees, and liabilities that may need to be supported if the key person is lost.

6. Disruption period (months)

Choose how long the business may be impacted (for example 3, 6, 12 or 24 months). Be conservative if the role is hard to replace.

7. Contingency, legal and recruitment buffer (percent)

Add a buffer for professional fees, recruitment, onboarding, temporary contractors and unexpected costs.

8. Round recommendations to

Select a rounding option that matches how you prefer to set benefit amounts (for example nearest 10000).

9. Key people

Select Add key person and complete each key person section requested, using realistic assumptions about their impact on revenue, profit protection, continuity and replacement costs. Add every person whose absence would materially affect results.

How to interpret results

The Calculator Summary shows total recommended life-style, TPD-style and trauma-style keyperson cover across all key people. Life-style cover is built around profit at risk, debt support and continuity costs if the person is permanently lost. TPD-style cover adds allowance for longer-term operational restructuring. Trauma-style cover is designed for shorter-term liquidity support during serious illness or injury disruption. Use the JSON summary for cleaner handoff when requesting a quote.

ASIC compliance note: This calculator provides general information only and does not consider your objectives, financial situation or needs. Consider ownership structure, purpose of cover (capital or revenue), and potential tax treatment, and seek advice from a licensed adviser before acting.

Share this calculator:


Insurance News

HESTA's Initiative to Lower Insurance Fees and Strengthen Member Benefits
HESTA's Initiative to Lower Insurance Fees and Strengthen Member Benefits
11 May 2026: Paige Estritori
HESTA, a prominent Australian superannuation fund, has unveiled a series of changes aimed at making insurance cover more accessible and affordable for its members. Effective from 1 July 2026, these changes include an average 12% reduction in insurance fees across all cover types. - read more
Challenger's Record Annuity Sales Drive Strong Half-Year Performance
Challenger's Record Annuity Sales Drive Strong Half-Year Performance
11 May 2026: Paige Estritori
Challenger, a leading Australian wealth management firm, has reported an 11% increase in life sales, reaching $5.1 billion in the December half of the 2026 financial year. This growth is primarily attributed to record annuity transactions, underscoring the company's strategic focus on retirement income solutions. - read more
APRA's New Capital Framework for Longevity Products
APRA's New Capital Framework for Longevity Products
11 May 2026: Paige Estritori
The Australian Prudential Regulation Authority (APRA) has announced significant reforms to the capital treatment of longevity products, including annuities, aimed at strengthening the market for retirement income solutions. These changes are set to take effect on 1 July 2026. - read more
Zurich Australia's Strategic Acquisition of ClearView Wealth
Zurich Australia's Strategic Acquisition of ClearView Wealth
03 May 2026: Paige Estritori
In a significant move within the Australian life insurance sector, Zurich Financial Services Australia has announced its intention to acquire ClearView Wealth Limited. This acquisition, valued at approximately AUD 415 million, is set to bolster Zurich's presence in the market and expand its customer base. - read more
Life Insurance Articles

Key Person Insurance: Protecting Your Most Valuable Assets
Key Person Insurance: Protecting Your Most Valuable Assets
Key Person insurance, is a vital form of business insurance that protects a company's most valuable assets: its people. This insurance is designed to compensate a business financially when a key individual, such as a business owner, an executive, or an indispensable employee, becomes incapacitated or passes away. - read more
The Impact of Losing a Key Employee: How Keyperson Insurance Helps
The Impact of Losing a Key Employee: How Keyperson Insurance Helps
Key person insurance is a valuable tool for any business looking to safeguard its operations and financial stability. But what exactly is it? - read more
The Role of an Insurance Broker in Securing Keyperson Insurance Coverage
The Role of an Insurance Broker in Securing Keyperson Insurance Coverage
Keyperson insurance is a type of business insurance designed to protect companies from financial losses that may occur due to the sudden loss of a crucial team member. This insurance policy provides a financial safety net that companies can rely on in difficult times, ensuring continuity and stability. - read more
Protecting Your Startup: Understanding Keyperson Life Insurance Options
Protecting Your Startup: Understanding Keyperson Life Insurance Options
Keyperson life insurance is a special type of coverage designed to protect businesses against the financial impact associated with the loss of a key team member. Essentially, it acts as a safety net for companies, ensuring that the sudden loss or absence of crucial personnel doesn't jeopardize business operations or continuity. - read more

Knowledgebase
Subrogation:
An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party.