InsuranceNeedsCalculator

Coverage Requirement Calculator

Compare a required coverage amount against what is in force and estimate the cost of closing the difference.

Last reviewed

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Free · No sign-up · Runs in your browser

Working out how much cover you need and working out what to do about it are two different tasks. The first produces a number; the second requires comparing it against what already exists and pricing the difference.

This calculator does the second half. Given a required amount, the amount in force and a rate per $1,000 from a quote, it reports the shortfall and what closing it would cost annually and monthly.

Your numbers

Results update as you type. Nothing is sent anywhere.

Result

Shortfall

$520,000

Estimated annual cost

$546

Status
Under-insured against the stated need
Required
$820,000
In force
$300,000
Share covered
36.59%
Surplus
$0
Estimated monthly cost
$46

This is an estimate based on the values you entered. Actual premiums, coverage, eligibility and pricing vary by provider and by individual circumstances.

The cost to close the gap uses the rate per $1,000 you entered. Rates change with age, health, property characteristics and carrier.

How to use the coverage requirement calculator

  1. Enter the coverage amount your needs analysis produced.
  2. Enter the total currently in force across every relevant policy.
  3. Enter the rate per $1,000 from a recent quote, if you have one.
  4. Read the shortfall and the estimated cost of closing it.

What people use this for

  • Turning a needs analysis into a specific purchasing decision.
  • Pricing additional cover before applying for it.
  • Checking whether several small policies add up to the requirement.
  • Reviewing after a change that moved the requirement.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

A meaningful shortfall

$820,000 required against $300,000 in force, at $1.05 per $1,000.

Shortfall
$520,000
Estimated annual cost
$546
Estimated monthly cost
$46

Adequately covered

The same requirement with $900,000 in force.

Shortfall
$0
Status
Need is covered
Surplus
$80,000

Add up everything in force first

People frequently under-count what they already hold. Employer group cover, a policy attached to a mortgage, an old individual policy, cover included with a professional association - all of it counts toward the requirement.

The one caveat is durability. Cover that ends when a job ends, or that is tied to a specific debt, is worth counting but worth noting separately, because a gap that only closes while circumstances hold is a fragile position.

Closing a gap is not always a new policy

Increasing an existing policy, exercising a guaranteed insurability option, converting a convertible term policy, or adding a second smaller policy are all routes. Which is cheapest depends on the original policy and on your circumstances now rather than then.

Where health or risk profile has changed since the original policy was written, options already built into it are frequently worth far more than a fresh application would be.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

  • The gap is the required amount minus the amount in force, floored at zero. A surplus is reported separately.
  • The cost to close applies the rate per $1,000 you entered. It is an estimate rather than a quote - rates depend on underwriting.
  • All figures are estimates produced from the values you enter. This site has no rate feed and no carrier data, so it cannot quote or price a policy.
  • Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator provides an estimate based on the information you enter. Actual insurance premiums, coverage, eligibility and pricing vary by provider and individual circumstances.

This website is not an insurance company, an insurance agency or a licensed broker. It does not sell insurance, does not provide insurance quotes, and is not authorised to give advice about which policy you should buy.

No result produced here is an offer of insurance or a guarantee of coverage. Only a licensed insurer or agent, working from your verified details, can quote or bind a policy.

Frequently asked questions

Where does the required amount come from?

From a needs analysis. Run that first, then bring the total here to compare against what you hold.

How do I find a rate per $1,000?

Divide a quoted annual premium by the cover in thousands. If you have no quote, leave the field at zero and the gap is still reported.

Is a surplus wasted money?

Not necessarily, but cover costs money every year. A large persistent surplus is budget that could be used elsewhere.

Should I buy one large policy or several smaller ones?

Layering smaller policies with different terms can match a declining need more closely and cost less overall. It also adds administration. Both are legitimate approaches.

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