FOR ADVISERS ONLY
Business protection calculator
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
person
OR
Amount of loan where full cover is
needed on key
person
Proportion of
overdraft attributable
to key person
Owner's loan
Director, partner or
member
loan/current
accounts (in full)
Other loans /
indebtedness
Key person cover*
Contribution
to profit
Contribution of key
person to the gross
profit of the
business multiplied
by years to recovery
OR
Contribution of key
person to the net
profit of the
business multiplied
by years to recovery
Replacement
costs
Agency fees
Salary/ pension/ bonus
Car lease
Other - relocation,
training
Other costs
eg. SIPP /SSAS
liquidity