Key Person Insurance Calculator
Key Person Insurance Calculator
What would it cost your business to lose them tomorrow?
Most owners say they'd just hire a replacement. Then the biggest client calls the competitor, the bank asks who's in charge, and the search takes nine months. Answer a few questions to see whether your business needs key person coverage, and roughly how much. Takes about 3 minutes.
Step 1 of 7
Choose an answer to continue.
Your results
Here's your key person exposure
Key person risk
Estimated coverage need
The estimate adds up what losing this person would likely cost: revenue that walks out the door, recruiting, interim help, getting a replacement up to speed, and any debt that could be called. It's a starting point, not underwriting.
Your full report
Unlock the breakdown, the setup checklist and your next steps
See exactly where the number comes from, how the policy has to be set up to keep the payout tax-free, the paperwork the IRS requires before it's issued, and three next steps. We'll email you a copy of your report.
The breakdown
Where the number comes from
What we noticed
Why this person matters
How it's set up
One structure, four lines
Premiums generally aren't tax-deductible. In exchange, the death benefit is generally received by the business income-tax free, as long as the IRS notice-and-consent rules below are met before the policy is issued. The business can use the money however it needs: lost revenue, a replacement, paying down debt, or reassuring lenders and customers.
Before the policy is issued
The IRS paperwork checklist (IRC §101(j))
- Written notice that the business intends to insure the employee's life
- Written disclosure of the maximum face amount
- The employee's written consent, including that coverage may continue after they leave
- Written notice that the business will be the beneficiary
- The insured qualifies, for example as a director or highly compensated employee
- File Form 8925 with the business tax return every year the policy is in force
Miss one and the part of the death benefit above premiums paid can become taxable income to the business.
Next steps
Three moves to protect the business
These steps are general education, not legal, tax or personal financial advice.
Next step
Book a key person review
We'll pressure-test the number, check what the carriers will actually issue for this person, and show you term and permanent options side by side, including coverage if they become disabled instead.
Book my reviewEducational content only. The Key Person Insurance Calculator is a general educational tool based on the answers and figures you enter. It is not underwriting, a valuation, or legal, tax, accounting or investment advice, or a recommendation to buy any financial or insurance product. Coverage amounts actually available depend on underwriting, the insured's compensation and health, and carrier guidelines. Consult your own qualified attorney, CPA and licensed financial professionals before acting. Producers Wealth (Laubscher Wealth Mgmt LLC) is licensed to offer insurance products in all 50 states and Puerto Rico. Insurance products are subject to underwriting and carrier approval. By submitting your information you consent to be contacted by Producers Wealth by email, phone or text about your results; you may opt out at any time.
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