11 Purdeys Way, Rochford, England, SS4 1ND
11 Purdeys Way, Rochford, England, SS4 1ND
Estimate a sensible level of Key Person cover in seconds. Enter annual earnings and we’ll apply accepted UK salary multiples to suggest Life and Critical Illness cover, plus guidance on what to consider next.
We use accepted market heuristics to estimate cover quickly:
Why these multiples? Death typically causes a longer disruption to profits, client relationships and leadership continuity than a critical illness (where the person may recover and return), hence the higher multiple for life cover.
Sanity check: Many advisers also keep total key person cover within sensible bounds versus the overall size and profitability of the business.
Example A — Small consultancy (10 staff)
Salary £85,000 → Life £850,000; CI £425,000.
Rationale: Principal consultant drives client retention. Insurer likely to check recent profits and client concentration.
Example B — E-commerce brand (key ops lead)
Salary £60,000 → Life £600,000; CI £300,000.
Rationale: Ops lead mitigates supply chain risk; recruitment/onboarding costs and time-to-recover matter.
Sense-check it against the individual’s profit impact and leadership role, recruitment/onboarding costs and how long you’d take to recover, plus your company’s size and profitability (often cross-checked for higher sums assured).
Yes, where known. Using total annual remuneration gives a more complete estimate. If unknown, start with base salary and refine later.
They’re accepted UK heuristics for quick estimates. Death typically causes a longer disruption to the business; CI impact may be temporary if the person returns.
That’s normal—every business is different. If the number feels off, consider how reliant you are on this person, your profitability, client concentration, and time to replace. When you’re ready, request a quote and a specialist will confirm a suitable amount and provide actual premiums.
Yes. Many businesses set a higher Life sum assured and a lower CI amount to reflect risk and budget.
Important: This calculator provides an educational estimate only and does not constitute personal advice. Policy availability and pricing depend on underwriting. Always review tax implications with a qualified professional and seek regulated financial advice before arranging cover.
UK’s Number One Business Protection Specialist.
