P&C Insurance Breakeven Calculator

P&C Insurance Break-Even Calculator

Compare paying premiums to a carrier versus investing that money and self-insuring

Coverage inputs

Annual premium$3,000

Deductible per claim$1,000

Max covered loss (policy limit)$100k

Claim frequencyOnce every 17 yrs

Typical homeowner claim: once every 15–20 years

Average claim size$25k

Investment alternative

Expected market return (annual)6.0%

Analysis time horizon15 yrs

Tax drag on investment gains6%

For illustrative planning purposes only. Not financial, insurance, or legal advice. Consult a licensed advisor before making coverage decisions.

Self-insurance break-even

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Calculating...

Pay the carrier

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Total premiums over the horizon

Invest instead

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Portfolio value if premiums invested

Opportunity cost of insuring (market gain foregone) —

Cumulative premiums paid

Investment portfolio value

Uninsured loss exposure