Key Person Insurance Calculator
Last updated: October 15, 2026
Compare income-multiple and replacement-cost approaches for key person coverage.
Starting figures illustrate this model. Enter your own measurements, quoted costs and applicable terms; this page does not retrieve live prices or provider rates.
Suggested planning coverage
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- Income-multiple approach: —
- Replacement and lost-profit approach: —
- Selected base before buffer: —
On this page
Quick summary: Compare income-multiple and replacement-cost approaches for key person coverage.
Read the complete guide
Updated reference sections in this guide are in English.
What this calculator estimates
Compare income-multiple and replacement-cost approaches for key person coverage.
How to use it
Enter Key person annual compensation ($); Income multiple; Recruiting and replacement cost ($); Estimated lost profit during transition ($); Coverage buffer (%). Select Calculate to update the results.
How the calculation works
The calculator compares compensation times an income multiple with replacement cost plus expected lost profit, then applies a buffer to the larger amount.
Worked example: starting scenario
| Key person annual compensation ($) | 180000 |
|---|---|
| Income multiple | 7 |
| Recruiting and replacement cost ($) | 75000 |
| Estimated lost profit during transition ($) | 600000 |
| Coverage buffer (%) | 10 |
| Suggested planning coverage | $1,386,000.00 |
|---|---|
| Income-multiple approach | $1,260,000.00 |
| Replacement and lost-profit approach | $675,000.00 |
| Selected base before buffer | $1,260,000.00 |
Important limitations
Coverage should reflect actual business dependency, ownership arrangements, insurability, policy terms and tax or legal advice.