Book of Business Valuation Calculator (Life Insurance)
How much will my book of business be worth?
This calculator projects your life insurance book forward by compounding three forces: the revenue you retain, the new production you add each year, and cross-sell from clients you already serve (riders, term-to-permanent conversions, additional lines). It then estimates the book's value at a transfer multiple you set. Enter your numbers below to see the trajectory over the years you choose and what the book could be worth.
Educational projection only, not financial or valuation advice. Assumptions are held constant across the period; real books vary and a sale price depends on due diligence. Kadence does not provide financial advice.
How the projection works
Three forces, compounded
Each year the calculator keeps your retained revenue (book times retention rate), adds a cross-sell uplift on that base (riders, term-to-permanent conversions, and multi-policy households), then adds your new production. That becomes the next year's book, so growth compounds. Small differences in retention or cross-sell widen dramatically over a 5 or 10 year horizon.
Why retention dominates
Retention applies to the entire book every single year, so it is the most powerful lever in the model. New production adds a fixed amount; retention and cross-sell multiply the base you have already built. Protecting the book you have usually beats chasing new business alone.
From revenue to book value
Books of business change hands at a multiple of annual revenue, but the multiple depends on product mix, persistency, client age, and the buyer. This tool applies the multiple you supply rather than inventing one, so the valuation is grounded in a real offer or a professional appraisal, not a guess.
Where Kadence fits
Two of the three growth forces, retention and cross-sell, run on consistent follow-up: renewals, check-ins, and timely offers to clients you already serve. Kadence automates that motion so the compounding base keeps compounding, and every new lead is captured to feed new production on top.
Related terms and guides
Frequently asked questions
How does a book of business grow year over year?
A book grows from three forces working together: the revenue you retain from existing clients, the new production you add each year, and the cross-sell and upsell revenue you pull from clients you already serve. This calculator compounds all three across the years you choose so you can see the trajectory, not just this year.
What retention rate should I use?
Use your own renewal experience: the share of annual book revenue that stays with you year to year. Life insurance books commonly run in the 80 to 90 percent range, but yours is the number that matters. Retention is the single largest lever in the projection because it compounds on the entire book every year.
How is the book valuation estimated?
The calculator multiplies your projected annual book revenue by a valuation multiple you enter. Multiples vary widely by book type, product mix, persistency, and buyer, so this tool does not assume one for you. Use a multiple from a real offer or a valuation professional; the estimate is only as good as that input.
Is this calculator financial advice?
No. It is an educational projection based on the numbers and assumptions you enter, held constant across the period. Real books vary by year, product, and market, and a sale price depends on due diligence. Kadence does not provide financial or valuation advice. Confirm any valuation or succession decision with qualified professionals.