Insurance ROI Calculator

Insurance ROI Calculator — Calculate Return on Insurance Investment

Calculate the return on investment (ROI) for your insurance policies. Determine if your insurance coverage provides good value based on premiums, coverage, and claims.

Step 1: Policy Details

Annual Premium

$1,500

Coverage Amount

$250,000

Policy Type

Policy Term (Years)

10 years

Understanding Insurance ROI

Insurance ROI measures the value you receive from insurance premiums. A positive ROI means the protection outweighs the cost, while negative ROI suggests overpaying for coverage.

Step 2: Claims & Benefits

Claim History (Total Claims)

Risk Probability (%)

Discount Rate / Opportunity Cost (%)

Currency

Show policy type comparison

Show ROI breakdown visualization

Calculating Insurance ROI

ROI = (Expected Benefits – Total Premiums) / Total Premiums × 100%. Expected benefits consider coverage amount, risk probability, and claim history.

Insurance ROI Results

Summary

Policy Comparison

Breakdown

Insurance ROI

166.67%

Based on $250,000 coverage and $1,500 annual premium

Total Premiums Paid

$15,000

Expected Benefit

$40,000

Net Return

$25,000

Annualized ROI

10.3%

Insurance Policy Comparison

Policy Type	Typical Premium	Coverage Range	Average ROI

ROI Breakdown Over Time

ROI Formula

ROI = (Expected Benefit – Total Premiums) ÷ Total Premiums × 100%

Expected Benefit = Coverage Amount × Risk Probability + Claims History. This calculation helps determine if your insurance provides good financial value.

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