Self-Insurance Calculator — Team Cocco Financial Planning

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Losing an Asset

Car totaled, home damaged, property stolen — the asset is gone plus potential liability

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Acquiring a Liability

Lawsuit judgment, medical bills, property damage to others — new debt created

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Losing Income

Disability, injury, illness — ongoing income stream interrupted or eliminated

💰 Asset & Liability Exposure

Asset Value ($)FMV of asset or income lost

Liability Amount ($)Potential judgment or debt acquired

Lost Annual Income ($)Income lost due to disability/injury

📊 Assumptions

Future Income Increase RateAnnual growth of lost income %

Time Value of Money Rate*After-tax rate assets would grow %

Analysis Period (in years)

* Time Value of Money Rate (TVMR) is the hypothetical after-tax rate at which assets, income, or both would compound had loss not occurred. These calculations do not include tax deductions for uninsured property or other potential items that might be itemized.

Total Hypothetical Self-Insurance Cost

The true cost of going without protection

Asset Cost (FV)

Asset compounded at TVMR

Liability Cost (FV)

Judgment compounded at TVMR

Lost Income Cost (FV)

Income stream compounded

📈 Cost Growth Over Time

🛡️ Protection Assessment

Threat:Any Risk:Should be considered Exposure:$0 Protection:Should be in place

The Self-Insurance Insight:

Self-insuring is never free — the "savings" from not paying premiums are dwarfed by the compounding cost of an unprotected loss.
Liability exposure grows exponentially — a $1M judgment today costs far more than $1M in lost future wealth.
Income loss compounds — disability doesn't just cost today's income, it costs decades of future earnings and growth.
Protection is the first domain — without it, every other financial plan is built on sand.