The level of cover will be equal to the value of the partner’s interest which will include:-

• Goodwill - as long as it appears in the accounts as an asset of the business.
• The forecast value of profits made but not distributed
• The capital value of the partner’s share including property.

Obviously the value of the business will rise and fall each year and as such Partners need to make sure that the level of cover they have is sufficient as without it, surviving partners would need to find other ways of paying for the partnership interest.