Business Life Cover :: Calculators
SHARE

Share this calculator!

Business Life Cover Buy Sell Insurance Calculator

Estimate how much buy sell insurance your business may need to fund a shareholder buyout. This calculator considers business value, ownership percentages and liabilities 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. Valuation
2. Shareholders
3. Results
4. How it works

Step 1 – Business valuation inputs

This is your EBIT, EBITDA or revenue depending on the selected method.

Step 2 – Shareholders / owners

Add each owner and their shareholding. You can also include debt / guarantee exposure and extra buyout funding needs if relevant.

Step 3 – Recommended cover

$0
Business value used
$0
Total Life cover
$0
Total TPD cover
$0
Total Trauma cover
Individual shareholder recommendations

This is a general planning aid only. Buy-sell deed wording, valuation methodology, tax treatment, ownership structure and trigger events should be reviewed before implementation.

Step 4 – How this calculator works

Life cover

Usually sized to fund the owner’s equity value and any related debt or guarantee exposure so control can transfer smoothly.

TPD cover

Often mirrors the buyout value where a permanently disabled owner can no longer continue in the business but still needs to be bought out.

Trauma cover

Usually smaller than Life/TPD and aimed at short-term liquidity, stabilisation or interim succession planning after a serious illness event.

Valuation matters: an agreed value under a buy-sell deed may differ from a quick multiple-based estimate, so the legal agreement and the insurance funding should be reviewed together.

How to use our Buy Sell Insurance Calculator

How to use our Buy Sell Insurance Calculator

Our Buy Sell Insurance Calculator is a business succession planning tool that helps you estimate how much Life, Total and Permanent Disability (TPD) and Trauma cover may be needed to fund a buyout if a business owner dies, becomes permanently disabled, or suffers a serious illness. It is important because it helps quantify each owner’s share of the business so remaining owners can retain control and support a smoother ownership transition.

This calculator provides general information only and does not take into account your objectives, financial situation or needs. Results are indicative, not a quote or recommendation. You should consider the relevant Product Disclosure Statement and obtain advice from an appropriately licensed professional before acting.

1. Business valuation inputs: Start by entering the company or business name (optional) and selecting your industry. Then choose a valuation method: enter an agreed value, or calculate from EBIT, EBITDA or revenue using a multiple.

2. Value fields: If using an agreed value, enter the agreed or estimated business value. If using a multiple method, enter the base metric amount (your EBIT, EBITDA or revenue) and the valuation multiple so the calculator can derive a business value.

3. Adjustments: Add business debt or liabilities if debt support or guarantee relief is part of the funding need. Set a transaction, legal, tax and valuation buffer percentage to allow for real-world costs.

4. Trauma guide and rounding: Choose a Trauma cover guide percentage (often lower than Life and TPD) and select how to round recommendations (for example nearest $10,000 or $50,000) to produce practical target sums insured.

5. Shareholders or owners: Click “Add shareholder” and enter each owner’s details and shareholding. For best results, ensure ownership percentages are accurate and align with your legal structure and buy-sell deed (for example company, trust or partnership arrangements).

6. Calculate and interpret results: Click “Calculate cover” to view the business value used plus total Life cover, total TPD cover and total Trauma cover. Use the JSON summary for a clean handoff to your adviser or broker for review and implementation discussions.

Finally, treat outputs as a starting point only. Buy-sell deed wording, valuation methodology, tax treatment, ownership structure and trigger events should be reviewed before you implement cover.

Share this calculator:


Insurance News

Why Chronic Illness Is Now a Business Continuity Issue
Why Chronic Illness Is Now a Business Continuity Issue
15 Jul 2026: Paige Estritori
New Zurich research has put a sharper lens on a risk many business owners already sense in their teams and families: Australians are living longer, but more of those years may be affected by chronic illness. For SMEs, this is not only a health story. It is a continuity, productivity and financial resilience story. - read more
Why Risk Commission Reform Matters for Business Owners
Why Risk Commission Reform Matters for Business Owners
08 Jul 2026: Paige Estritori
A fresh industry poll has put life insurance remuneration back in the spotlight, with a strong majority of advisers reportedly supporting a review of the Life Insurance Framework commission caps. The current hybrid model, commonly described as 60/20, limits upfront and ongoing commissions on life risk insurance and has shaped how personal and business protection advice is delivered since the reforms were phased in. - read more
Final Life Code Review Signals Higher Standards for Life Insurers
Final Life Code Review Signals Higher Standards for Life Insurers
01 Jul 2026: Paige Estritori
The independent review of Australia’s Life Insurance Code of Practice has moved from consultation to action, with reviewer Peter Kell releasing a final report that recommends 85 reforms. For business owners, directors and partners who rely on life cover to protect revenue, debt obligations and succession plans, the review is more than an industry governance exercise. - read more
New Report Highlights the Cost of Unplanned Business Succession
New Report Highlights the Cost of Unplanned Business Succession
24 Jun 2026: Paige Estritori
A new Business Health research report has put a sharp focus on a familiar but often under-managed risk: what happens to a business if its principal suddenly dies or becomes permanently disabled. While the report is centred on Australian financial advice practices, its message applies broadly to SMEs, partnerships and owner-led companies where enterprise value is closely tied to one or two key people. - read more
Life Insurance Articles

Understanding the Costs of Business Life Insurance for Australian SMEs
Understanding the Costs of Business Life Insurance for Australian SMEs
Business life insurance is a special type of coverage that protects businesses from financial uncertainties that arise from the unexpected death of a key individual. For small to medium-sized enterprises (SMEs), this insurance can be an essential part of their risk management strategy. By covering debts, providing funds to secure successors, or safeguarding against disruptions in operations, business life insurance plays a crucial role in ensuring stability. - read more
Insurance Solutions for Key Person Risk Management Explained
Insurance Solutions for Key Person Risk Management Explained
Key person risk is a critical consideration for small and medium-sized enterprises (SMEs). It refers to the financial risk a company faces due to the potential loss of an employee who plays a pivotal role in its success. This key individual could be a founder, an executive, or anyone whose departure could significantly impact the company's operations and strategic direction. - read more
The Benefits of Key Man Insurance for Small and Medium Enterprises
The Benefits of Key Man Insurance for Small and Medium Enterprises
Key man insurance, also known as key person insurance, is a type of business insurance policy designed to protect small and medium enterprises (SMEs) from financial loss resulting from the death, disability, or critical illness of a key employee. This individual is often someone whose skills, knowledge, or leadership are vital to the company's success, such as a founder or a top executive. - read more
Understanding Buy-Sell Insurance: A Guide for Australian SMEs
Understanding Buy-Sell Insurance: A Guide for Australian SMEs
Buy-sell insurance is a financial strategy primarily focused on small to medium-sized enterprises (SMEs). It involves an agreement among business partners to manage the transfer of ownership shares in the event of a significant change, such as the departure, disability, or death of a partner. Essentially, it's a safeguard designed to ensure business continuity during tumultuous times. - read more

Knowledgebase
Reinsurance:
Insurance that an insurance company purchases from another insurance company to mitigate risk.