Life Insurance Needs Calculator

Life Insurance Needs

Life insurance is one of the best ways to protect your family's financial security.

Cash Needs

How much will be needed to cover immediate expenses?		Name
Funeral expenses	0	0	Funeral Expenses Funeral costs can range from $5,000 (simple cremation) to $20,000 (full service burial).
Mortgage paydown	0	0	Mortgage paydown Enter the outstanding balance of your mortgage. If unsure, enter the original mortgage amount.
Loans, credit cards	0	0	Loans, credit cards Enter the total amount of bank loans, car loans, credit card balances and lines of credit.
Legal, executor fees	0	0	Legal, executor fees Executor fees can be as high as 5% of the value of the estate.
Probate fees	0	0	Probate fees Probate fees can range from 0% to 1.5% of the value of your estate.
Taxes	0	0	Taxes Taxes may be owed on the collapse of RRSPs/RRIFs or capital gains on deemed dispositions.
Education fund
Cost per year	0	0	Education fund Annual education costs (tuition and room and board) can range from $15,000 to $25,000 per year.
Years to be funded	0	0
Number of children	0	0
Current funding available (RESPs)	0	0	Current funding Enter the current value of any education funds such as RESPs.
Subtotal	0	0
Emergency fund	0	0	Emergency fund Three to six months of salary is a reasonable amount to cover unexpected expenses.
Gifts and bequests	0	0	Gifts and bequests Enter an amount you want to leave to a charity or foundation.
Other	0	0	Other Expenses This includes other major expenses such as child care, home repairs or a child's wedding.
Other	0	0
Total Cash Needs	$0	$0

Income Needs

How much future income is needed to sustain your survivors?		Name
Annual household income	0	0	Annual Household Income Enter your combined annual household income (before-tax).
Percent of annual income needed if you die	0.00	0.00	Percent of Income Needed How much income will your family need to maintain their current lifestyle if you die.
Subtotal	0	0
Less:
Partner's available income	0	0	Partner's Income Enter your surviving partner's income (before-tax).
Other	0	0
Other	0	0
Subtotal	0	0
Annual income shortage	0	0	Annual Income Shortage This is the annual income that needs to be by funded by proceeds (capital) from life insurance.
Deplete or retain capital?			Deplete/Retain Capital Do you want to use up the capital (deplete) that will generate the income or retain it?
How long will you need the extra income?	0	0	Years of income Number of years your family will need the capital to provide for living expenses and income.
Rate of return	0.00	0.00	Rate of Return Enter the rate of return that will be earned by the capital. X Input Error: Rate of Return Enter a value between and %.
Inflation rate	0.00	0.00	Inflation Rate Enter a rate to index your annual income and protect it from inflation. X Input Error: Inflation Rate Enter a value between and %.
Total Needed to Meet Income Shortage	$0	$0

Available Assets

How much do you have to meet cash and income needs?		Name
Savings	0	0	Savings Total you have in cash, chequing accounts, savings accounts or other accounts.
Non-registered investments	0	0	Non-Registered Investments Total you have in mutual funds, stocks, bonds and annuities that aren't in your RRSP or TFSA.
Registered investments	0	0	Registered investments Don't include TFSAs and RRSPs that are set aside for your retirement.
Existing life insurance	0	0	Existing Insurance Include all existing life insurance plans, group plans and mortgage insurance.
CPP death benefit	2,500	2,500	CPP Death Benefit Canada Pension Plan death benefit is a one-time payout of $2,500 paid to your estate.
Other	0	0	Other Assets If your survivors might sell your house, car, business or farm assets, include their value here.
Other	0	0
Other	0	0
Total Available Assets	$0	$0

Your Life Insurance Need

		Name
Cash needs	0	0
Income needs	0	0
Total Cash & Income Needs	0	0
Less available assets	0	0
Life Insurance Need *	$0	$0
* A positive amount indicates an insurance need. A negative amount indicates an insurance surplus.

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Disclaimer

Life Insurance Needs

Life insurance is one of the most important investments you can make to protect your family's financial security.

It is used to guarantee that your family will have a lump sum to pay off large financial obligations such as a mortgage or post-secondary education, pay for funeral and estate expenses and provide an ongoing income so your family can maintain their current lifestyle.

Life insurance benefits are non-taxable and are not subject to probate fees.

Summary		Name
Cash Needs		$375,000
Income Needs		$769,934
Total Cash & Income Needs		$1,114,934
Less Available Assets		$502,500
Life Insurance Need *		$642,434

* A positive amount indicates an insurance need. A negative amount indicates an insurance surplus.

Disclaimer

Life Insurance Needs Details

Cash Needs				Name
Funeral expenses			$15,000	$15,000
Mortgage paydown			$200,000	$200,000
Loans, credit cards			$0	$0
Legal, executor fees			$0	$0
Probate fees			$0	$0
Taxes			$0	$0
Education fund:	Cost per Year		$20,000	$20,000
	Years to be funded		4	4
	Number of children		2	2
	Current funding (RESPs)		$50,000	$50,000
	Subtotal		$110,000	$110,000
Emergency fund			$50,000	$50,000
Gifts & bequests			$0	$0
Other			$0	$0
Other			$0	$0
Total Cash Needs				$375,000

Income Needs				Name
Annual household income			$150,000	$150,000
Percent of annual income needed if you die			50.00%	50.00%
Subtotal		A	$75,000	$75,000
Less:	Partner's available income		$25,000	$25,000
	Other		$0	$0
	Other		$0	$0
	Subtotal	B	$25,000	$250,000
Annual income shortage		(A - B)	$50,000	$50,000
Deplete or retain capital?				Deplete
How long will you need the extra income?			20 yrs	20 yrs
Rate of return			5.00%	5.00%
Inflation rate			2.00%	2.00%
Total Needed to Meet Income Shortage				$769,934

Available Assets				Name
Savings			$500,000	$500,000
Non-registered investments			$0	$0
Registered investments			$0	$0
Existing life insurance			$0	$0
CPP death benefit			$2,500	$2,500
Other			$0	$0
Other			$0	$0
Other			$0	$0
Total Available Assets				$502,500