Insurance Coverage Gap Calculator
Identify your insurance coverage gap by comparing your assets and liabilities against current coverage.
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How to use this calculator
Your recommended life coverage equals your income replacement need plus total liabilities. The gap is the difference between what you need and what you currently have. Emergency fund gap compares your current savings to the recommended six-month buffer.
- 1
Enter your total assets and liabilities to establish your net worth baseline.
- 2
Input your annual income, the years of income protection you want, and your current life insurance coverage.
- 3
Add your monthly expenses and current emergency fund months to see your emergency fund gap alongside your life insurance gap.
Frequently asked questions
How many months of emergency fund is recommended?
Most financial advisors recommend 3–6 months of living expenses for a single-income household and 6–12 months for those with variable income or higher job risk. This calculator uses 6 months as the target benchmark.
What counts as total assets?
Total assets include your home value, savings accounts, investment accounts, retirement funds (401k, IRA), vehicles, and other valuable property. Use current market values rather than purchase prices.
My employer provides life insurance — should I include it?
Yes, include any employer-provided group life insurance in your current life coverage. However, note that this coverage typically ends if you leave your job, so factor in that risk when assessing your overall protection.
Find Your Insurance Coverage Gaps Before It Is Too Late
Why Coverage Gaps Are Dangerous
A coverage gap is the difference between the financial protection you need and what you actually have. Many households are significantly underinsured — relying on minimal employer coverage and inadequate emergency savings. In the event of death, disability, or a financial emergency, these gaps can force families to liquidate assets, take on debt, or drastically reduce their standard of living.
Building a Comprehensive Protection Plan
Addressing coverage gaps is a two-step process: first, identify the gaps using tools like this calculator; second, prioritize filling them. Typically, life insurance gaps pose the greatest risk and should be addressed first, followed by building an adequate emergency fund. Review your coverage annually or after major life events such as marriage, a new child, a home purchase, or a significant income change.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →