What are the tax benefits of Keyman insurance?

The premium paid by the company is treated as a business expense under Section 37(1). However, the claim amount received by the company is taxable as business income under Section 28(vi).

Who is eligible for Keyman insurance?

Any employee whose death would lead to a significant financial loss for the company—founders, directors, top salespeople, or technical experts—is eligible.

Can a startup buy Keyman insurance?

Yes, startups often buy Keyman insurance to protect the business against the loss of a founder, which is frequently a requirement from Venture Capitalists during funding rounds.

Key Man Insurance Calculator

Determine the sum assured needed to protect your business from the loss of a crucial employee.

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Quick Summary: Key Man Insurance Calculator

For business continuity in FY 2026-27, Keyman insurance cover is calculated as 10x the key person's package or 3x the average gross profit. Premiums are tax-deductible as business expenses under Section 37(1).

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.