This tool does NOT provide an indication of which policy is a better investment. It is intended to help the client select the policy that best meets his/her needs. See the help topic Protection Component Assumptions for more details. Enter the current insurance alternative on the left. Then enter a "better alternative" on the right. The expectation is that the better alternative should have a lower annual premium. Click Calculate to compare the two scenarios both in today’s dollars and at opportunity (future value of premiums). This tool compares the Cost of a Potential Lawsuit to the cost of a Liability Umbrella Policy. |
No script is provided for this screen. |
Premium as a % of Coverage This tool shows the annual premium as a percent of the Coverage. The formula is: Premium as a % of Coverage = (Annual premium / Coverage) * 100 The result is displayed in percent. Opportunity Cost of a Potential Claim This calculation makes the assumption that the client is sued today for the value of all his attachable assets. A spreadsheet is used to calculate the Potential Claim at Opportunity (or future value of the Potential Claim or FVPC). The spreadsheet calculates the FVPC at the beginning of each year (row) in column 3, the interest earned each year in column 4, and the FVPC at the end of each year in column 5. The results are in the bottom row of the column labeled Assets at Interest End of Year. |