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

nib and NobleOak Join Forces to Launch New Life Insurance Offerings
nib and NobleOak Join Forces to Launch New Life Insurance Offerings
10 Jun 2026: Paige Estritori
In a significant development for the Australian life insurance market, health fund nib has partnered with NobleOak Life to introduce a suite of new life insurance products. This collaboration aims to provide Australians with enhanced financial protection options, addressing the evolving needs of individuals and businesses alike. - read more
Significant Delays in Income Protection and TPD Claims Raise Industry Concerns
Significant Delays in Income Protection and TPD Claims Raise Industry Concerns
10 Jun 2026: Paige Estritori
Recent findings from the Life Insurance Code Compliance Committee (Life CCC) have highlighted a concerning trend in the Australian life insurance industry: a significant increase in delays for income protection and Total and Permanent Disability (TPD) claim payments. In the financial year 2024-25, violations of the industry's code regarding timely income protection payments surged by 67% compared to the previous year, affecting a substantial number of policyholders. - read more
Industry Leaders Collaborate to Enhance TPD Insurance Sustainability
Industry Leaders Collaborate to Enhance TPD Insurance Sustainability
26 May 2026: Paige Estritori
In a recent high-level roundtable, Australia's financial regulators, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC), convened with senior executives from 19 insurers and reinsurers to address the pressing sustainability issues within the Total and Permanent Disability (TPD) insurance market. - read more
BizCover and Zurich Australia Enhance Professional Indemnity Insurance for SMEs
BizCover and Zurich Australia Enhance Professional Indemnity Insurance for SMEs
26 May 2026: Paige Estritori
In a strategic move to bolster support for small and medium-sized enterprises (SMEs), BizCover has entered into a distribution agreement with Zurich Australia. This partnership aims to expand the availability of professional indemnity (PI) insurance, offering SMEs enhanced coverage options tailored to their specific needs. - read more
Life Insurance Articles

Understanding Buy-Sell Agreements for Australian Businesses
Understanding Buy-Sell Agreements for Australian Businesses
Buy-sell agreements are crucial legal contracts that outline how a partner’s share of a business may be reassigned if that partner dies or otherwise leaves the business. These agreements are often part of a company's succession planning strategy, aiming to provide a clear path forward in the case of unforeseen events. - 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
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 Importance of Business Debt Protection Insurance
The Importance of Business Debt Protection Insurance
Business debt protection insurance is a specialised type of insurance designed to shield businesses from the financial fallout that can occur if they find themselves unable to meet their debt obligations. By providing coverage against such scenarios, this insurance acts as a safety net for businesses, ensuring that unexpected events do not lead to crippling financial losses. - read more

Knowledgebase
Insurance broker:
An agent acting on behalf of the insured (not the insurance company) who negotiates the terms and cover provided by the insurer in the insurance policy.