Use this calculator to estimate how much life, TPD and trauma insurance each partner may need to protect the business, fund a buy-sell arrangement, and support families if a serious event occurs.
'Calculator results are estimates only and not quotes. Actual quotes will be provided by licensed brokers after you submit an enquiry.'
1. Business
2. Partners
3. Results
4. Ownership structures
Step 1 – Business details
Used to estimate each partner’s buy-sell funding requirement.
Include loans, overdrafts and liabilities the remaining partners may need to manage.
Buffer for valuation movement, stamp duty/legal costs, or negotiation slippage.
Step 2 – Add the partners
Add each partner and enter their ownership, income, replacement cost and any family/personal protection need.
Step 3 – Recommended cover
Total Life Cover
Total TPD Cover
Total Trauma Cover
Heads-up: This is a general planning aid only. Ownership structures, tax treatment, debt obligations, cross-ownership vs self-ownership, and buy-sell agreement wording can materially affect the correct cover.
Step 4 – Ownership structure explainer
The calculator gives you a funding estimate, but how the policy should be owned is a separate issue. These summaries are general only and should be reviewed with a qualified adviser and solicitor.
Cross ownership
Each partner owns policies on the lives of the other partners.
Can work well for small partnerships with few partners.
Buy-sell funding may be direct and simple.
Gets complex as partner numbers increase.
Policy ownership changes may be needed if partners enter or leave.
Self ownership + buy-sell agreement
Each partner owns their own cover, usually supported by legal agreements that direct the proceeds.
Cleaner administration for some businesses.
Can align well with personal estate planning.
Requires careful legal drafting so proceeds are applied as intended.
Tax and control issues should be reviewed before implementation.
Super ownership / other structures
Some cover may be owned through super or another entity, but this can create restrictions and complexity.
May reduce out-of-pocket premium funding in some cases.
Release conditions and benefit access rules matter.
Not always suitable for buy-sell funding.
Advice is essential before using super-owned structures.
General rule: first work out the funding need, then decide the ownership structure.
The best structure usually depends on partner numbers, tax position, succession planning, and how the buy-sell agreement is drafted.
How to use our Partnership Insurance Calculator
Our Partnership Insurance Calculator helps business owners estimate how much Life, Total and Permanent Disability (TPD) and Trauma insurance each partner may need to protect the business, fund a buy-sell arrangement, manage shared debts, and support families if a serious illness, injury or death occurs. It matters because underinsurance can force a rushed sale, create disputes over value, or leave the remaining partner and family exposed to business and personal financial stress. The calculator is a planning tool only and does not provide personal advice.
To get the best estimate, complete the form in this order.
1. Business or partnership name and industry
These fields help you label scenarios and keep records, especially if you run multiple entities.
2. Estimated business value
Enter a realistic current value. This is used to estimate each partner’s equity and potential buy-sell funding need. If you have a recent valuation, use it rather than a guess.
3. Total business debt or liabilities
Include business loans, overdrafts and other liabilities that may need to be cleared or refinanced if a partner cannot work. Understating debts can materially understate the suggested cover.
4. Business continuity or revenue disruption period
Select the months that best reflect how long the business may be impacted if a partner dies or becomes disabled. Longer disruption generally increases the suggested protection.
5. Buy-sell or valuation buffer
If available, add a buffer for valuation movement and transaction costs such as legal expenses.
6. Add each partner
Use Add partner and enter each person’s share of the business, income and responsibilities. Complete every partner for balanced results and to avoid gaps in buy-sell funding.
7. Calculate and interpret results
Select Calculate recommended cover to view suggested Life, TPD and Trauma sums insured per partner. Treat outputs as indicative only: insurer definitions, underwriting, waiting periods, ownership structure, tax treatment and buy-sell wording can change what is appropriate. Use the JSON summary to share assumptions with your adviser or insurance specialist for a tailored recommendation before acting.
General information only, not financial product advice. Consider your objectives, financial situation and needs, and read the relevant Product Disclosure Statement before deciding.
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Knowledgebase
Depreciation: The reduction in the value of an asset over time, used in insurance to calculate the actual cash value of property.
