Business protection calculator

This calculator will help you to decide on an appropriate amount of cover for a key person.

There are many ways of arriving at the value of a key person, and each situation has to be viewed individually.

You should consider the effect of the loss of the key person on the business and take into account any contributions they make to profit and estimate replacement costs.


Reason for cover

Amount of cover

Key person 1

Key person 2

Key person 3

Loan cover

Bank loans

Proportion (£) of
bank loans
attributable to key


Amount of loan where full cover is
needed on key

Proportion of
overdraft attributable
to key person

Owner's loan

Director, partner or
accounts (in full)

Other loans /

Key person cover*

to profit

Contribution of key
person to the gross
profit of the
business multiplied
by years to recovery


Contribution of key
person to the net
profit of the
business multiplied
by years to recovery


Agency fees

Salary/ pension/ bonus

Car lease

Other - relocation,

Other costs


Total key person and loan cover

Key Person 1
Key Person 2
Key Person 3
*Total key person cover (excluding loans) should not exceed 2 X average gross profit or 5 X average net profit. NOTE: Figures subject to acceptance following financial underwriting.

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.