Life Insurance Needs Calculator

This calculator will walk you through a capital needs analysis to determine how much life insurance you should own. Start by entering your current assets, expenses, and income. You can also adjust the rate of inflation and your expected investment returns to see how these variables can impact your insurance needs. Numerical values with decimals are OK, but do not use commas or blank spaces.
Note: This calculator is intended to provide estimates only. Please speak to a licensed Insurance advisor for a recommendation tailored to your specific life insurance needs.

Please enter the following information:
Immediate Expenses After Death
Outstanding Mortgage: (amount needed to pay off your mortgage) $
Personal Loans and Other Debts: (funds needed to pay off loans, lines of credit, credit card balances, etc.) $
Education Fund: (estimate, the cost of your children’s future education including tuition, books, and living expenses: allow $15,000 per year / per child for each year of schooling.) $
Emergency Funds: (factor in 3-6 months’ salary) $
Final Expenses: (funeral expenses, probate fees, etc: average cost $10,000 to $15,000) $
Ongoing Family Income Needs
Replacement Income: (how much income would your family need each month if you passed away? The general rule of thumb is 60-70% of current income) $
per month
Duration of Income: (how many years family will need to rely on this monthly insurance income? ie: until children leave home; until spouse reaches retirement; recommended 5 years minimum)
 no. of years
Inflation Rate: (inflation will erode the purchasing power of any fixed income, estimate between 2-4%) %
Return on Investment (insurance proceeds are typically paid in a lump sum which your survivors can invest to provide for their income needs) %
Current Asset Value
Existing Insurance: (what is the total value of your existing life insurance policies:include group employer and association plans, personal individual coverage, and mortgage insurance) $
Available Assets: ( cash and other investments that would be available on your death, including mutual funds, RSPs, GICs, T-Bills and other investments that could be easily liquidated.) $



 




DISCLAIMER: This needs analysis is intended as a tool to assist you and is not meant to indicate the actual costs that may be incurred as a result of a critical illness. This is not a recommendation or opinion as to the amount of insurance you might require, but rather a basis for discussion between yourself and your advisor.

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