Estimate the life coverage a business needs to offset losing a person it depends on.
Coverage need
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Recruit & train
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Lost profit
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Debt secured
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How this works. When a business loses a key person, the death benefit is meant to keep it afloat
three ways: recruiting and training a replacement, making up the lost revenue until
that replacement is fully productive, and covering business debt a lender has tied to that person.
Recruit & train is entered as a multiple of the key person's pay; lost profit is their share of company profit over
the recovery period; the coverage need is simply the three added together. Bigger contribution or a longer recovery
means more coverage.
Educational illustration of standard Canadian insurance concepts. Figures are illustrative, not an insurer’s rates.
Illustration only, not a quote or advice. Figures are simplified for education and do not
reflect any specific insurer's rates. Consult a licensed advisor.