What is Buy-Sell insurance?

It is a policy that funds a legal agreement where surviving partners buy out a deceased partner's shares at a pre-agreed fair market value.

Is partnership insurance premium tax deductible?

Yes, if structured correctly under Section 37(1) of the IT Act as a business expense for continuity, the firm can claim tax benefits.

Cross-purchase vs Entity purchase?

In cross-purchase, partners buy policies on each other. In entity purchase, the firm buys policies on all partners. Cross-purchase is usually more tax-efficient for SMEs.

Partnership Insurance / Buy-Sell

Calculate the insurance cover required to fund a Buy-Sell agreement and ensure business continuity.

Share this calculation:

Documentation

Quick Summary: Partnership Insurance / Buy-Sell

Partnership Buy-Sell insurance ensures that in FY 2026-27, surviving partners have the immediate cash to buy out a deceased partner's stake. This prevents legal heirs from disrupting operations and secures the firm's legacy.

Related Calculators

Life Stage Insurance Planner

Key Man Insurance Calculator

Partnership Insurance / Buy-Sell

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.

Partnership Insurance / Buy-Sell

Calculate the insurance cover required to fund a Buy-Sell agreement and ensure business continuity.

Share this calculation:

Documentation

Quick Summary: Partnership Insurance / Buy-Sell

Related Calculators

Life Stage Insurance Planner

Key Man Insurance Calculator

Partnership Insurance / Buy-Sell

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.