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.
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Knowledgebase
Replacement Cost: The amount it would cost to replace or rebuild an insured asset with one of similar kind and quality, without depreciation.
