Insurance
Insurance Coverage Calculator
Calculate asset replacement, income replacement, total modeled protection need, and the remaining coverage gap or surplus. The protection-wall visual keeps each need visible instead of presenting one unexplained total.
Asset replacement component-
Income replacement component-
General coverage target-
Coverage gap or surplus-
Decision view
Coverage target and protection wall
Coverage target and protection wallAsset replacement, income support, and obligations build the target before current applicable coverage is compared.
Exact scenario comparisonIncome replacement years changes while all other entered assumptions remain constant.
| Income replacement years | Asset replacement component | Income replacement component | General coverage target | Coverage gap or surplus |
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How to use Insurance Coverage Calculator
- Inventory property and contents at the valuation basis used by the intended policy.
- Choose an income-replacement period that reflects household transition needs.
- Count current coverage only when its beneficiary, exclusions, limits, and purpose match the modeled need.
Calculator guide
Understanding Insurance Coverage Calculator
Coverage planning is a balance-sheet exercise: identify property that must be replaced, income that must continue, and obligations that should be cleared, then compare that need with coverage already available.
Calculation method
How the calculation works
Combine entered asset replacement, income replacement, and outstanding obligations, then compare the result with current applicable coverage. Add entered property value, annual income multiplied by replacement years, and outstanding obligations; subtract current applicable coverage to obtain the modeled gap.
Coverage audit
Test whether the current policy can reach the intended need
A face amount alone does not establish usable protection.
Worked situations
Practical examples
- $480,000 of property plus eight years of $85,000 income and $160,000 of debts creates a $1.32 million target.
- $650,000 of applicable current coverage leaves a $670,000 modeled gap.
- Changing income replacement from eight to five years reduces the target by $255,000.
Better inputs
Useful tips
- Separate life, property, liability, disability, and business risks rather than treating coverage as interchangeable.
- Review inflation and rebuilding-cost estimates after major purchases or renovations.
- Document which assets and policies were included so the comparison can be updated.
Before relying on the result
Limitations and common mistakes
- The page does not price a policy or determine legal adequacy.
- Taxes, inflation, survivor benefits, policy exclusions, sublimits, deductibles, liability, and insurability are excluded.
- Current coverage is assumed fully applicable to the modeled needs.
Reference
Key terms
- Replacement value
- Entered amount needed to restore the modeled asset or income resource.
- Income replacement
- Annual income multiplied by the selected support period.
- Applicable coverage
- Existing protection that can actually meet the same modeled need.
- Coverage gap
- Target need minus applicable current coverage.
Important note
Calculated from the entered values and policy assumptions. The policy contract and insurer review control actual coverage or settlement.
Frequently asked questions
Can property insurance offset income replacement?
Normally no; different policies and proceeds serve different risks.
Why include debts?
The model treats entered obligations as amounts the protection plan is intended to clear.
What does a negative gap mean?
It indicates a modeled surplus under entered assumptions, not proof that coverage is excessive.
Does this recommend a policy?
No. It organizes needs for discussion with a qualified adviser or insurer.