Health Insurance Loss calculator… Download here…

Health Insurance Loss calculator… Download here…

Many people are of the view that paying a health insurance premium is a loss for them.

In addition, they feel that they may not be sick forever or that paying from their own pocket is more beneficial than having a personal health policy.

So, I have calculated an Excel template for you to analyse the return on investment that you will get if there is a claim in any year.

If the roi is some 7% and above, that means your health insurance policy is giving wonderful profits or protecting you from huge losses.

health insurance loss calculator

How to use this health insurance loss calculator?…

HEALTH INSURANCE LOSS CALCULATOR

In the above image, you can see first-year premium and the yearly increase of premium cells.

In addition, you can edit the values in both the cells.

Morever, I already assumed that the sum assured is 10 lakh for the base policy and a super top-up policy.

And the premium for a 30-year-old adult, including family, is Rs. 30,000.

Again, the rate of increase in premium is assumed to be 7% per year.

However, these two cells, you can assume or edit as per your convenience.

Let’s understand this health insurance loss calculator with some examples…

If you have paid Rs. 30,000 for the first year and there is a claim of Rs. 40,000 after one year, and before paying the 2nd year premium?

roi from health insurance premium

You can see in the above image that the ROI from this policy is 33.3% for paying Rs. 30,000 premium.

Again, if you have paid the premiums till 9 years and if there is a claim of Rs. 6,00,000 before paying the 10th year premium, the roi?

roi

You can see in the above image that the return on investment, i.e., for paying the health insurance premium, is 11%.

If you have paid the premium till 80 years of age and if there is a claim of 1 crore at age 80.

Then the return on investment is 1.6%.

So, like this, you can calculate loss or profit for paying a health insurance premium.

 

How does health insurance protect your wealth and ROI? …

First, you should know what the wealth is that you can create without health insurance.

Let’s assume that your age is 30, your first-year investment is 3 lakh, and the growth rate for the investment every year is 7%, and the roi is 10% p.a.

You can see in the Excel sheet that the wealth created is 21.4 crores.

What will happen to the wealth and RoI if the health insurance premium is paid? …

Let’s assume that the health insurance premium for the first year is Rs. 30,000; it will increase by 7% every year.

In addition, you have taken a base cover of 10 lakh and super-topped up for 1 crore.

In the above Excel sheet, you can see that ROI came down to 9.51%.

And the wealth created is 19.48 crores, while the wealth without health insurance is 21.4 crores.

What happens to the roi and wealth if there is a claim?…

Let’s assume that there will be a claim after 10 years from now.

You can see in the above Excel sheet that even if there is a 10 lakh claim, the ROI is not getting changed from 9.51%, and wealth also remains 19.4 crores.

So, it is very clear that return on investment and wealth are decreasing for paying health insurance premiums.

But that decrease is very limited.

However, the loss in ROI and wealth will be huge if there are multiple claims in the entire 35-year period.

What will be the change in roi and wealth without a health insurance premium? …

You can see in the above Excel sheet that the ROI decreased to 9.33% because of multiple health insurance claims and also wealth also came down to 18.8 crores from 19.4 crores.

So, the loss in wealth and ROI is unlimited without health insurance protection.

In the above Excel sheet, you can see that there is no change in the wealth and ROI even if there are multiple health insurance claims.

Read an article about is private health insurance worth in India?…

And download the Sukanya Sammridhi Yojana exel calculator…

Also read about Pradhan Mantri Fasal Bima Yojana: All you need to know…

And read why life insurance and investment should not be mixed. …

Also read about Why one crore term insurance is not good?…

And read Tithe Giving—Will Make Christians Poor? …

Also read about the MWP Act in Life Insurance…

And read about how to beat one crore wealth with one lakh investment. …

Also read about what is the best way to buy and sell gold. …

 

 

 

 

 

 

 

 

 

 

 

 

 

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