Keyman Insurance Calculator

Determine the maximum allowable Sum Insured for a Keyman Policy based on IRDAI underwriting guidelines.

Key Executive's Annual Salary

Total CTC of the founder/director being insured.

Company's Average Net Profit

Average net profit over the last 3 financial years.

Max Eligible Sum Insured

₹5,00,00,000

Underwriting Method Checks

Method 1 (10x Salary)₹5,00,00,000

Method 2 (5x Avg Net Profit)₹25,00,00,000

Insurers usually cap the policy at the LOWER of the multiple methods.

Important Legal & Tax Rules

The company pays the premium and the company is the sole beneficiary.
Premiums paid are tax-deductible as business expenses under Section 37(1).
If the insured executive dies, the claim amount paid to the company is fully taxable as business income.
The keyman cannot hold more than 51% (sometimes 75%) shares in the company depending on the insurer.

Loading calculator…