Free Calculator

How much buy-sell cover do you need?

Enter your business details to estimate the right sum insured for your buy-sell agreement. Then book a free call to get a specific recommendation.

Buy-Sell Sum Insured Calculator

Estimate how much cover each owner needs

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Your estimated results
Recommended sum insured — your share
$0
Based on your ownership share of the business
Your share value
$0
Estimated value of your ownership stake
Co-owner cover needed
$0
Estimated sum insured per remaining owner
Important: This calculator provides general information only and does not constitute personal financial product advice. Results are illustrative estimates based on the inputs provided and do not represent a quote, Statement of Advice (SoA), or product recommendation. Actual sum insured requirements depend on your business structure, buy-sell agreement terms, business valuation method, and personal circumstances. Thompson Financial Services Pty Ltd ACN 162 326 552 t/as Skye Wealth is a Corporate Authorised Representative of Skye Money, AFS Licence No. 545313. Read our full disclaimer.

Book a Free Call

15 minutes with Phil Thompson

Phil Thompson, CEO of Skye Wealth
Phil Thompson
CEO & Founder, Skye Wealth

Phil specialises in buy-sell structuring for Australian business owners. He'll walk you through your options clearly — no jargon, no pressure.

AFSL Licensed Buy-Sell Key Person Business Cover

What happens on the call

15 minutes. No prep needed.

1
Phil asks about your business structure and how ownership is split
2
He explains which cover types apply to your situation and why
3
You leave with a clear picture of what you need and what comes next
The Process

Four steps to a funded succession plan.

Most business owners put this off for years. Here is how straightforward it actually is.

1
Use the calculator
Get an instant estimate of the right sum insured based on your business value and ownership split.
2
Book your free call
15 minutes with Phil. He'll discuss your business structure, succession goals, and cover options.
3
Receive your SoA
A personalised Statement of Advice detailing the right structure, insurer, and policy for your situation.
4
Apply & activate
We handle the paperwork. Your buy-sell agreement is funded and your business is protected.
Cover Types

Three ways to fund your buy-sell agreement.

Most business owners need at least two of these. A Skye adviser will work out the right combination for your structure.

Life Insurance (Death Cover)

The most common buy-sell trigger. If an owner passes away, the insurance proceeds fund the surviving owners to purchase the deceased's share from their estate, without needing loans or asset sales.

Get a recommendation →
TPD Insurance (Total & Permanent Disability)

If an owner becomes totally and permanently disabled and can no longer contribute, TPD cover provides a lump sum to fund the buyout. This prevents a situation where a disabled partner retains equity without being active.

Get a recommendation →
Trauma Cover (Critical Illness Trigger)

Cancer, heart attack or stroke can leave an owner unable to work for months or permanently. A trauma-triggered buy-sell clause allows a structured exit before TPD or death definitions are met.

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Funded vs Unfunded

What happens without a funded agreement?

Most business owners know they need a buy-sell agreement. Far fewer have one backed by insurance.

Scenario No Insurance Funding Funded Buy-Sell Agreement
Owner dies unexpectedly ✗ Estate retains shares; family controls the business ✓ Proceeds fund the buyout; ownership transfers cleanly
Owner becomes permanently disabled ✗ Disabled partner keeps equity without contributing ✓ TPD proceeds fund the buyout at agreed value
Business valuation at exit ⚠ Disputed with no pre-agreed method ✓ Method pre-agreed and locked into the deed
Finance to buy out exiting owner ✗ Must source debt, sell assets, or find a new investor ✓ Insurance pays out; no external finance needed
Family involvement post-exit ✗ Family may become unwanted business partners ✓ Agreement controls who can hold shares
Business continuity ✗ Major disruption; dispute likely ✓ Business continues operating without interruption
Tax & stamp duty efficiency ⚠ Ad-hoc treatment may trigger unexpected CGT events ✓ Structure reviewed by adviser at outset
2 in 3
Australian businesses have no funded buy-sell agreement in place
$0
Cost of your initial 15-min call with a Skye adviser
3
Trigger events buy-sell cover can be structured around
100%
Of the paperwork we handle on your behalf
Client Stories

Business owners who got covered.

★★★★★

"We had a shareholder agreement for years but never realised it wasn't funded. Phil explained the gap in about 10 minutes and we had policies in place within the month."

Co-founder, engineering firm
Buy-sell cover client, Sydney
★★★★★

"My business partner and I had been meaning to sort this for three years. Used the calculator, booked the call, and within a few weeks our succession plan was actually funded."

Director, professional services firm
Buy-sell cover client, Melbourne
★★★★★

"Your patience with all the paperwork was fantastic. If you hadn't walked us through the TPD cover we would never have known what we were entitled to."

Skye Wealth client
TPD claim recipient
Talk to Phil

A specialist, not a quote engine.

The calculator gives you a number to work with. Phil gives you the structure behind it. Book a free 15-minute call and leave knowing exactly what your business needs.

Phil Thompson
CEO & Founder, Skye Wealth
Phil Thompson, CEO of Skye Wealth
Phil Thompson
CEO, Skye Wealth

Phil founded Skye Wealth to give Australian business owners access to straight insurance advice. Buy-sell structuring is one of the most complex and most neglected areas of business insurance. He built this tool because too many business owners find out the hard way that their agreement has no money behind it.

AFSL Licensed Buy-Sell Key Person Life Insurance TPD & Trauma
Common Questions

Questions people actually ask.

A buy-sell agreement is a legally binding contract between co-owners of a business that governs what happens to a departing owner's share if they die, become totally and permanently disabled, or suffer a serious illness. Without insurance funding, the remaining owners may not have the capital to buy out the exiting owner's share. They would need to take on debt, bring in new partners, or sell business assets. Life insurance, TPD and trauma cover can be structured to provide the exact funds needed at the right time.
There are three main ownership structures: self-ownership (each partner holds a policy on their own life, with proceeds payable to fund the agreement), cross-ownership (each partner holds a policy on the other partner's life), and trust-ownership (policies held by a trustee of a buy-sell trust). Each has different tax implications, capital gains treatment, and administrative requirements. A Skye Wealth adviser will work through the right structure for your business.
Common methods include capitalisation of future maintainable earnings (a multiple of EBIT or EBITDA), net asset value (book value of assets minus liabilities), revenue multiples, or an agreed fixed value set out in the buy-sell deed. The buy-sell agreement should specify the valuation method to avoid disputes at claim time. The sum insured should be reviewed annually, particularly in faster-growing businesses.
Tax treatment depends on the ownership structure, business structure, and the type of cover. In some structures, premiums are not deductible. Proceeds received may trigger capital gains tax events depending on whether the policy is owned personally or by the business entity. Always seek advice from a financial adviser and a tax adviser before putting a buy-sell arrangement in place.
If you are a sole director and shareholder, a traditional buy-sell agreement does not apply. However, you may still benefit from a business succession plan. This could include key person insurance to protect the business if you are unable to work, and life or TPD cover to fund a sale to a third party, a management buyout, or a structured wind-down. Skye Wealth advises on the full range of business succession options.
Yes. No hard sell, no commitment required. Phil's approach is to give you a straight picture of what you need and why. If buy-sell insurance is not the right fit for your situation, he will tell you. Skye Wealth is built on long-term client relationships, not one-off product sales.

Your business partnership
needs a plan behind it.

The calculator takes 2 minutes. The call takes 15 minutes. Most business owners leave wishing they had done it sooner.

No cost. No commitment. AFSL licensed advice.