Deductible Premium Tradeoff Breakeven Years Calculator
Compare actual deductible quote pair using simple extra-exposure/premium-saving horizon; no claim probability, discounting, risk-adjusted recommendation or coverage equality assumed.
Description
A simple deductible tradeoff compares added claim exposure with annual premium savings.
A simple deductible tradeoff compares added claim exposure with annual premium savings. A no-claim horizon does not encode claim probability.1
The returned values include Additional deductible exposure minor, Annual premium saving minor, Simple no claim breakeven years. The How section below explains the calculation, input rules and interpretation.
When to use Deductible Premium Tradeoff Breakeven Years Calculator
Use Deductible Premium Tradeoff Breakeven Years Calculator when you need to evaluate the supplied records under the calculation and evidence rules below. No discounting, claim-probability model, coverage equality or risk-adjusted recommendation is supplied.
Prepare the observed policy, claim or quote evidence and independently verified policy tables. Monetary fields use integer minor units in one currency: for a currency with 100 minor units per major unit, enter 12345 for 123.45. One basis point is 0.01 percentage points, so 10000 basis points represents 100%.
How to use Deductible Premium Tradeoff Breakeven Years Calculator and understand its results
- Prepare the observed policy, claim or quote evidence and independently verified policy tables. Monetary fields use integer minor units in one currency: for a currency with 100 minor units per major unit, enter 12345 for 123.45. One basis point is 0.01 percentage points, so 10000 basis points represents 100%.
- Enter callerLowDeductibleMinor, callerHighDeductibleMinor, callerLowDeductibleAnnualPremiumMinor, callerHighDeductibleAnnualPremiumMinor using the field table and calculation rules, then run the tool.
- Read additionalDeductibleExposureMinor, annualPremiumSavingMinor, simpleNoClaimBreakevenYears. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| callerLowDeductibleMinor | Caller low deductible minor | number | Required |
| callerHighDeductibleMinor | Caller high deductible minor | number | Required |
| callerLowDeductibleAnnualPremiumMinor | Caller low deductible annual premium minor | number | Required |
| callerHighDeductibleAnnualPremiumMinor | Caller high deductible annual premium minor | number | Required |
Enter integer money 0–10¹² each, with high deductible at least low and strictly positive premium savings. Return extra exposure, annual savings and years; equal deductibles can give zero years.
exposure=highDeductible−lowDeductible; saving=lowDeductiblePremium−highDeductiblePremium; years=exposure/saving Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| additionalDeductibleExposureMinor | Additional deductible exposure minor | number |
| annualPremiumSavingMinor | Annual premium saving minor | number |
| simpleNoClaimBreakevenYears | Simple no claim breakeven years | number |
{
"input": {
"callerLowDeductibleMinor": 1000,
"callerHighDeductibleMinor": 3000,
"callerLowDeductibleAnnualPremiumMinor": 10000,
"callerHighDeductibleAnnualPremiumMinor": 9000
},
"output": {
"additionalDeductibleExposureMinor": 2000,
"annualPremiumSavingMinor": 1000,
"simpleNoClaimBreakevenYears": 2
}
}Limitations and assumptions
No discounting, claim-probability model, coverage equality or risk-adjusted recommendation is supplied.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Multi Policy Bundle Discount Percent Calculator: Bundle savings compare separate premiums with individually rounded discounts and a fixed annual fee. Fees can make net savings negative. For a complementary task, use Copay vs Coinsurance Scenario Compare Tool: Post-deductible copay and coinsurance scenarios use different patient-cost rules. A fixed copay is capped by the allowed cost.
References
Similar or alternative tools
- Multi Policy Bundle Discount Percent Calculator
Bundle savings compare separate premiums with individually rounded discounts and a fixed annual fee. Fees can make net savings negative.
- Copay vs Coinsurance Scenario Compare Tool
Post-deductible copay and coinsurance scenarios use different patient-cost rules. A fixed copay is capped by the allowed cost.