Keyman Insurance Calculator
Determine the maximum allowable Sum Insured for a Keyman Policy based on IRDAI underwriting guidelines.
Total CTC of the founder/director being insured.
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.