Income Protection NZ Keyperson Insurance Calculator

Our Keyperson Insurance Calculator helps Australian businesses estimate an appropriate level of key person insurance cover for people whose death, permanent disablement or serious illness could affect profits, client continuity, debt servicing and overall business stability. It is important because underinsuring can leave cashflow, loans and succession plans exposed, while overinsuring can increase premiums and strain budgets. The calculator provides planning estimates for life-style, TPD-style and trauma-style keyperson cover, based on disruption and financial impact assumptions you enter.

How to complete the form for the best result

1. Business name (optional)

Enter a label to identify this scenario, especially if you plan to compare multiple estimates.

2. Industry

Select the closest industry to help contextualise the scenario for later discussions with your adviser or insurer.

3. Annual turnover (dollars)

Use your most recent full-year figure, or a realistic forward estimate if revenue has materially changed.

4. Gross profit margin (percent)

Enter gross profit margin, not net margin. This helps estimate profit at risk during the disruption period.

5. Business debt and liabilities to protect (dollars)

Include loans, director guarantees, and liabilities that may need to be supported if the key person is lost.

6. Disruption period (months)

Choose how long the business may be impacted (for example 3, 6, 12 or 24 months). Be conservative if the role is hard to replace.

7. Contingency, legal and recruitment buffer (percent)

Add a buffer for professional fees, recruitment, onboarding, temporary contractors and unexpected costs.

8. Round recommendations to

Select a rounding option that matches how you prefer to set benefit amounts (for example nearest 10000).

9. Key people

Select Add key person and complete each key person section requested, using realistic assumptions about their impact on revenue, profit protection, continuity and replacement costs. Add every person whose absence would materially affect results.

How to interpret results

The Calculator Summary shows total recommended life-style, TPD-style and trauma-style keyperson cover across all key people. Life-style cover is built around profit at risk, debt support and continuity costs if the person is permanently lost. TPD-style cover adds allowance for longer-term operational restructuring. Trauma-style cover is designed for shorter-term liquidity support during serious illness or injury disruption. Use the JSON summary for cleaner handoff when requesting a quote.

ASIC compliance note: This calculator provides general information only and does not consider your objectives, financial situation or needs. Consider ownership structure, purpose of cover (capital or revenue), and potential tax treatment, and seek advice from a licensed adviser before acting.