How it works
Most people have insurance blind spots — either paying for overlapping coverage they do not need or missing critical protection that could be financially devastating. This audit evaluates your insurance portfolio across four dimensions: property protection (home, auto), income protection (life, disability), liability protection (umbrella), and health/long-term care. The premium-to-income ratio shows whether you are paying a reasonable amount for coverage (industry benchmark is 5–8% of income). The coverage score rates completeness across all critical categories. Missing life insurance when you have dependents, lacking disability coverage, or having no umbrella policy are common gaps that this audit identifies. Every field in this calculator exists for a reason. Enter Annual household income, Home value, Total vehicle value, Total annual insurance premiums, Have life insurance?, All inputs stay in your browser. Adjust one field at a time to see which lever moves the answer most — the formula on this page lets you verify every step against the defaults shown in the worked example.
Formula
Premium ratio = Total annual premiums ÷ Household income × 100 | Coverage score = Items covered ÷ Items recommended × 100
Tips
- Premium-to-income ratio above 10% suggests overpaying or over-insuring.
- Life insurance is critical if anyone depends on your income.
- Umbrella policies ($1M coverage) cost $200–400/year and protect everything.
- Review insurance annually — life changes create new gaps.
Frequently asked questions
- What percentage of income should go to insurance?
- Industry benchmark is 5–8% of gross income. Above 10% suggests overpaying. Below 3% may indicate underinsurance in critical areas.
- Which insurance is most important?
- Health insurance first (catastrophic risk). Then disability insurance (protects your earning power). Then life insurance (protects dependents). Then property and liability.
- How accurate are the calculator results?
- The math is exact — the same formulas a financial professional would use by hand. The precision of the output depends entirely on how realistic your inputs are. Use your actual numbers rather than estimates when possible. The defaults are reasonable starting points, but your real income, rates, and timeline will produce a different result.