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.

Quick Summary: Partnership Insurance / Buy-Sell

Partnership Buy-Sell insurance ensures that if a partner dies or is disabled, surviving partners have immediate cash to buy their equity. This prevents heirs from interfering in management or selling to competitors, securing the firm's future.

Related Calculators

Term Insurance HLV Calculator

LIC Traditional Policy IRR Buster

ULIP vs Mutual Fund Comparator

Life Stage Insurance Planner

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.