Enter the insurance policy amount in your selected currency.
Enter the deductible amount in your selected currency.
History:

Explanation

How to calculate the total payout from an insurance policy?

The total payout can be calculated using the following formula:

Total Payout (TP) is given by:

§§ TP = (P - D) \times P_r \times C \times Y §§

where:

  • § TP § — total payout
  • § P § — insurance policy amount
  • § D § — deductible amount
  • § P_r § — payout percentage (as a decimal)
  • § C § — claims per year
  • § Y § — insurance period in years

This formula allows you to determine how much you will receive from your insurance policy after deducting the deductible and applying the payout percentage for the specified number of claims over the insurance period.

Example:

  • Insurance Policy Amount (§ P §): $1000
  • Deductible Amount (§ D §): $200
  • Payout Percentage (§ P_r §): 80% (or 0.8)
  • Claims per Year (§ C §): 2
  • Insurance Period (§ Y §): 1 year

Total Payout:

§§ TP = (1000 - 200) \times 0.8 \times 2 \times 1 = 1280 §$

When to use the Cost per Insurance Deductible Calculator?

  1. Insurance Planning: Understand how much you can expect to receive from your insurance policy after deductibles and payout percentages.

    • Example: Estimating potential payouts for health, auto, or home insurance.

  2. Financial Decision Making: Evaluate whether a particular insurance policy is worth the cost based on potential payouts.

    • Example: Comparing different insurance policies to see which offers better coverage.

  3. Budgeting for Emergencies: Plan for unexpected expenses by knowing how much insurance will cover.

    • Example: Preparing for potential medical expenses or property damage.

  4. Claims Analysis: Assess the financial impact of making multiple claims over a period.

    • Example: Understanding how frequent claims can affect your overall payout.

  5. Insurance Policy Comparison: Compare different policies based on their deductibles and payout percentages.

    • Example: Analyzing which policy provides better value for your specific needs.

Practical examples

  • Home Insurance: A homeowner might use this calculator to determine how much they would receive after a claim for damages, considering their deductible and the payout percentage.
  • Health Insurance: An individual could use the calculator to estimate their out-of-pocket expenses after a medical procedure, factoring in their deductible and insurance coverage.
  • Auto Insurance: A driver can assess how much they would receive from their insurance after an accident, based on their policy details.

Definitions of Terms Used in the Calculator

  • Insurance Policy Amount (P): The total amount covered by the insurance policy before any deductions.
  • Deductible Amount (D): The amount that the insured must pay out-of-pocket before the insurance company pays the remaining costs.
  • Payout Percentage (P_r): The percentage of the claim amount that the insurance company will pay after the deductible is applied.
  • Claims per Year (C): The number of claims that the insured expects to make within a year.
  • Insurance Period (Y): The duration (in years) for which the insurance policy is valid.

Use the calculator above to input different values and see the total payout change dynamically. The results will help you make informed decisions based on your insurance policy details.