Key Person Insurance Calculator UK

Key person insurance cover is typically calculated using multiples of the individual's annual salary or profit contribution. The standard UK market approach is 10× annual earnings for life cover and 5× for critical illness cover. However, the exact amount should consider the person's specific role, profit contribution, and any business loans they personally guarantee.

The most commonly used multiple in the UK is 10× annual salary for life cover and 5× for critical illness cover. Some businesses prefer to calculate based on profit contribution instead of salary, using 5× gross profit contribution for life cover and 2.5× for critical illness.

Critical illness cover is recommended alongside life cover as it protects against serious illnesses that prevent the key person from working but don't result in death. Statistics show that people are more likely to suffer a critical illness than die during their working years.

No, this calculator provides estimated cover amounts based on standard market methodology. It is not an insurance quote. To get actual premium quotes, you need to contact insurance providers or brokers with specific details about the key person's age, health, and the exact policy terms required.

This calculator provides a starting point using established market heuristics. However, the exact cover required depends on many factors including the individual's specific role, profit contribution, industry, business structure, and existing debts. Always consult with a qualified insurance adviser for personalized recommendations.

This calculator works for one person at a time. For multiple key people, use the calculator separately for each individual and then total the recommended cover amounts. Consider that you may need separate policies for each key person.