Protection gap

The Protection gap shows, for each financial year (FY), the cover the Household needs, the cover it holds, and the difference. Kosh shows the current FY and the next two FYs. An FY starts on 1 April.

Covers

A Cover is one life or health policy. It has the insured Member, the cover amount, an optional yearly premium, a start date, and an end date. A Cover counts as held in an FY when it is active on 1 April of that FY. Any Member can add, edit, or delete a Cover for any Member.

Needed life cover

A Member can type the needed life cover for an FY. A typed amount always wins.

If no Member types it, Kosh uses a formula:

• the loan outstanding at the start of the FY (the latest Snapshot of each loan Holding on or before 1 April),
• plus one year of outflows of the Plan Items in that FY,
• multiplied by N years for the outflows. N is a Household setting. The default is 10.

The gap is the need minus the cover held. If the cover held is more than the need, the gap is zero and the screen shows "Covered".

The screen always shows where the number came from: "Typed by a Member" or the formula with its values.

Needed health cover

Kosh has no formula for health cover. A Member types the needed amount for an FY. Until then the screen shows "Not set" and the held amount.

What Kosh does not do

Kosh shows the gap as a number. It does not name an insurer, a policy, or a product.