Business Life Cover 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.