Insurance Coverage Gap Analyzer

Most households have scattered insurance: a life policy from their 20s, auto liability at whatever the state minimum is, no umbrella, mediocre disability through work, and a guess at homeowners. This analyzer looks across life, liability, and disability at once to find which line has the biggest dollar gap — so you fix the highest-leverage hole first.

Real example. Household: $500k net worth, $100k income. Current life $250k, current underlying liability $400k, current disability $3,000/month. Life target at 10× income = $1,000,000 → $750k life gap. Liability target at net worth + 5× income = $1,000,000 → $600k liability gap. Disability target at 65% × monthly income = $5,417/month → $2,417/month disability gap. The biggest absolute gap is life ($750k), the highest per-dollar leverage is liability (an umbrella runs $150–$300/year for $1M coverage — cheapest fix in insurance).

Enter the five numbers. The analyzer highlights which gap is the largest in dollar terms. Fix the largest first unless the largest is disability (disability is usually the most expensive to fix per dollar of coverage — address it last unless you're the sole income earner).

If you want to stress-test the answer, pair with life insurance calculator and umbrella insurance calculator — the two numbers should corroborate each other within ~15%. If they don't, one of your inputs is off.

Mistakes: counting group life insurance through work as a permanent asset (it's not — it dies with your job); counting the homeowners liability and auto liability as independent ($300k + $300k = $300k of combined underlying, not $600k, for umbrella attachment purposes); ignoring disability because it's invisible.

Life gaps are cheapest to fix for young healthy people (~$35–$55/month per $1M 20-year term for a 35-year-old non-smoker). Umbrella gaps cost $150–$350/year per $1M. Disability gaps are the most expensive — typically $40–$80/month per $1,000/month of benefit for a healthy professional.

State guaranty associations cap what they'll pay on insolvent carriers: $300k death benefit, $100k cash value, $250k health claim, $300k disability present value in most states. Spread coverage across carriers if any single line exceeds these caps.

Before you pull quotes, write a one-page spec: exact limits, exact deductible, exact riders, exact coverage period. Give all carriers the same spec. When quotes come back, ignore the headline premium and normalize — is the deductible identical, are the riders identical, is the liability limit identical? Only then compare.

Drop each carrier's real number back into this calculator to see the expected annual cost (premium + deductible × claim probability), not just the sticker. A $150 cheaper premium with a $750 higher deductible is usually worse once you account for probability. Pair with long-term disability calculator and insurance portfolio planner to confirm you're sizing limits correctly.

Rerun annually at tax time when you have all your financial numbers in one place. Also rerun after any major life event that changes net worth or income by more than 15%.

Calendar a reminder for 45 days before the renewal. Pull three fresh quotes — one from a direct writer (GEICO, Progressive), one from a captive agent (State Farm, Allstate, Farmers), and one from an independent agent who represents 8–12 carriers. Combine with insurance shopping checklist for your full portfolio view.

This tool is educational, not financial or insurance advice. Actual premiums depend on factors no web tool can perfectly model, including carrier-specific underwriting, state regulations, your individual history, and policy-form details. Formulas here use simplified national averages to get you within a reasonable planning range — not to produce a bindable quote. Before purchasing any coverage gap analysis policy, consult a licensed insurance agent in your state. Carrier links on this page are sponsored affiliate placements; we may earn a commission if you click and purchase, at no additional cost to you. This does not influence the calculator math or our editorial picks.

This calculator runs entirely in your browser using JavaScript. Nothing you type is transmitted to our servers. Nothing is stored after you close the tab. Use the Export PDF button to take the inputs and results with you. If you want a coverage gap analysis feature that doesn't exist yet, send a note via the contact page — we prioritize tool-building based on real user requests.