Insurance Coverage Analysis
Protect your wealth and loved ones with adequate insurance coverage
Current Coverage
₹0
Required Coverage
₹0
Coverage Gap
₹0
Adequacy
0%
Life Insurance Calculation Methods Comparison
How We Calculate Your Insurance Requirement
Method 1: Human Life Value (HLV)
Your life insurance should replace the income your family would lose if you were no longer around. We calculate this using:
Required Coverage = ₹10L × 25 × 0.75 = ₹1.88 Cr
HLV = Annual Income × Years until Retirement × Dependency Factor (75%)
Example: If you earn ₹10L annually, have 25 years until retirement, and support dependents:
Required Coverage = ₹10L × 25 × 0.75 = ₹1.88 Cr
Method 2: DIME (Debt, Income, Mortgage, Education)
A comprehensive approach covering all financial obligations:
DIME = Debts + (Income × 10 years) + Mortgage + Education Fund
- Debts: All outstanding loans except mortgage
- Income: 10 years of income replacement
- Mortgage: Home loan balance
- Education: Children's education fund
Health Insurance - Inflation-Adjusted Coverage
Medical costs inflate at 10-15% annually. Your health cover should account for:
Top-up suggestion: Consider super top-up policies for additional ₹50L coverage at low cost.
Minimum Coverage = Family Size × ₹10L (metro) or ₹5L (non-metro)
Recommended: ₹10-20L for nuclear family (metro city), ₹5-10L (tier 2/3 cities)
Top-up suggestion: Consider super top-up policies for additional ₹50L coverage at low cost.
Current vs Required Coverage
| Insurance Type | Current Coverage | Required Coverage | Gap | Status |
|---|
Coverage Gap Analysis
Coverage Distribution
Why Insurance is Critical
Risk: No Life Insurance
If the primary earner passes away without adequate life cover, the family loses their income source. This can lead to:
- Unable to pay EMIs → Loss of home/assets
- Children's education disrupted
- Forced to liquidate savings/investments
- Financial dependence on relatives
Risk: Inadequate Health Insurance
A major medical emergency without sufficient health cover can wipe out years of savings:
- Cardiac surgery: ₹5-15L
- Cancer treatment: ₹10-25L
- Organ transplant: ₹15-50L
- ICU stay (1 month): ₹3-8L