Insurance Coverage Gap Calculator

1. Five Coverage Types, Assessed Independently

Each insurance type covers a different risk. You shouldn't substitute one for another. The calculator computes the required cover per type, compares to your current cover, and shows the gap.

2. Life Insurance — DIME Method

Required = Debts + (Income × Years to Retirement) − Liquid Assets

DIME (Debt + Income + Mortgage + Education) is the standard heuristic for sizing life cover. Years to Retirement is the income-multiplier window — the period during which your family would need income replacement. Assets reduce the need.

3. Health Insurance — 5-Year Expense Buffer

Required = MAX(Monthly Expenses × 12 × 5, ₹5,00,000)

Medical inflation in India runs at ~12–15% p.a. — much higher than CPI. A health emergency can wipe out years of savings. The 5-year expense buffer (with a ₹5L floor) approximates this exposure.

4. Critical Illness, Accident, Disability

Critical Illness = 3× Annual Income (lump-sum payout on diagnosis of major illness)

Accident / PA = 2× Annual Income (lump-sum payout on accidental death or permanent disability)

Disability Income = 70% of Monthly Expenses (monthly income benefit — shown separately because it's a recurring stream, not a lump sum)

5. The Protection Score

Score = MIN(100, Total Current / Total Required × 100)

The score is capped at 100 — over-insuring one type doesn't make up for gaps in another. Verdict bands: 80–100 Well Protected, 60–79 Moderate Coverage, 40–59 Under-Insured, 0–39 Critically Under-Insured.

Disability is excluded from the totals because it's expressed in ₹/month while the others are lump sums — mixing them would distort the score.

Caveats & Disclaimer

Coverage requirements are indicative — your actual needs depend on family structure, lifestyle, region, and risk tolerance. Consult an IRDAI-registered insurance advisor for personalised recommendations. Premium estimates aren't included here — see the WealthNest Term Insurance Calculator for that.