Life Insurance Needs Analysis

How Much Life Insurance Do You Need?

Step 1: Assets and life insurance available in an emergency

Liquid Assets Emergency cash savings, GICs, RRSPs, other Investments available in an emergency
Other Disposable Assets Rental property, business assets, cottage, etc.
Total Amount of Life Insurance Including Group Insurance, Personal Insurance, and Mortgage Insurance
Total Funds Available in an Emergency	$0

Step 2: Immediate liabilities and cash needed

Total Mortgage Amounts Owing Including personal residence and rental properties
Other Loans and Debts Including lines of credit, student loans, car loans, credit card balances, etc.
Final Expenses Funeral expenses, legal and executor fees, income and capital gains taxes
Education Funding for Children We suggests a minimum of $10,000 per child per year of schooling minus current savings
Other Cash Needs Emergency funds, child care, caring for aging parents, charitable donations, etc.
Total Immediate Cash Needs Upon Death	$0

Step 3: Replace lost income for your survivors in the event of your death

Annual Income Required For Survivors

We suggests 70% of your current gross income

Number Of Years Income Is Required

A good rule of thumb is number of years until your children are financially independent or until retirement age

Amount Required To Fund Survivors Income

Assumed 6% annual rate of return and 3% inflation rate and funds depleted by the end of the replacement years

Results: Your life insurance shortfall

Amount Of Life Insurance Needed For Survivors

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Note: This calculator is intended to provide estimates only. Please speak to a licensed Canada insurance advisor at Life Guard Insurance for a recommendation tailored to your specific life insurance needs.

See all three Insurance Needs Analysis Calculators.