What is an Insurance Protection Gap?

An Insurance Protection Gap is the mathematical shortfall between the financial resources your family would need to maintain their standard of living, clear debts, and fund goals in your absence, versus the actual sum insured and liquid assets you currently possess.

How is the Insurance Gap calculated?

The Insurance Gap is calculated by combining: (1) Living Expense Replacement until retirement, (2) Total outstanding liabilities (home and personal loans), and (3) Future family milestone goals (higher education and marriage), minus existing liquid investments and existing life cover.

Why should I evaluate both Life and Health Insurance gaps together?

A severe medical hospitalization can drain savings intended for life insurance premiums or family goals. Assessing both life protection and health mediclaim limits ensures a holistic financial safety net without gaps.

Signature Assessment Tool

Insurance Protection Gap Calculator

Discover if your family is under-insured. Combine living expense replacement, outstanding loans, milestone goals, and health cover needs to estimate your protection shortfall.

Calculate Protection Gap

Estimate Your Insurance Protection Gap

Free Educational Tool

Fill in your family income, liabilities, goals, and existing cover details to calculate your protection shortfall.

1. Income & Family Profile

Current Age (Years) *

Planned Retirement Age *

Monthly Household Living Expenses (₹) * Groceries, rent, utilities, school fees

Number of Financial Dependants

2. Debts & Future Milestones

Total Outstanding Loans (₹) Home loan balance + car/personal loans

Future Milestone Goals (₹) Child higher education, marriage corpus

3. Existing Protection & Assets

Existing Life Cover (₹) Current term / life cover sum assured

Existing Health Cover (₹) Current mediclaim sum insured

Liquid Savings / Investments (₹) Emergency funds, FDs, mutual funds

Significant Protection Gap Detected

Estimated Protection Shortfall:

₹0

Total estimated financial shortfall your family would face without additional life & health coverage.

Life Insurance Gap

Estimated Protection Need ₹0

Existing Life Cover ₹0

Life Shortfall ₹0

Health Cover Gap

Recommended Target Cover ₹0

Existing Health Cover ₹0

Health Shortfall ₹0

What this result means

The gap shows the exact shortfall your family might face in the event of an emergency or loss of income. If you have existing policies, it is highly recommended to audit them for hidden conditions like room-rent limits, waiting periods, and inflation adjustments.

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Educational Disclaimer: This calculator provides educational estimates based on user-provided assumptions. It does not constitute an insurance quote, financial advice, or underwriting decision.

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Get Your Protection Reviewed by an ISP

Connect with a qualified Insurance Sales Person (ISP) at RakshaPoint Insurance Marketing LLP to structure a cost-effective plan that closes your protection gap.

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Educational Calculation Methodology

Holistic Family Protection Mathematics

Calculations evaluate living expenses, liabilities, and healthcare inflation parameters.

Why Most Indian Families Have an Unrecognized Insurance Gap

Many policyholders believe having a ₹5 Lakh corporate mediclaim and a ₹10 Lakh traditional life insurance endowment policy is sufficient. In reality, medical inflation (running at 12-14% annually) and escalating living costs create massive shortfalls:

1. The Living Expense Multiplier

A family spending ₹50,000/month requires at least ₹1.2 Crore to ₹1.5 Crore in capital so that annual interest returns can replace monthly household expenses without eroding the principal.

2. Debt & Liability Trap

Outstanding home loans and personal debts must be extinguished immediately upon an untimely demise. Otherwise, surviving family members may face asset foreclosure.

3. The Super Top-Up Strategy for Health Gaps

Instead of buying an expensive ₹50 Lakh standalone health policy, policyholders can combine a ₹5 Lakh base cover with a ₹45 Lakh Super Top-Up at a fraction of the cost.

Need Guidance with Your Numbers?

Speak with a qualified Insurance Sales Person (ISP) at RakshaPoint IMF for a parameter-based review of your current policies.

Contact an ISP Helpline: +91 90685 73723