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Insurance Needs

How much term life coverage do you actually need? Plug in your numbers, get an honest answer.

About you

yrs
1875
$
$20,000$1,250,000
$
$0$1,250,000
yrs
125

Debts

$
$0$3,000,000
%
112
yrs
530
$
$0$500,000

Family

06
$
$0$150,000
$
$0$50,000
$
$0$5,000,000

Counted against your need - but remember it disappears when you leave the job.

Recommended term life coverage

$745,000

Total need: $745,000 · Existing coverage: $0

20-year term

~$627 /yr

approx. $52 /month for a healthy non-smoker

30-year term

~$878 /yr

approx. $73 /month for a healthy non-smoker

Your coverage need over time

Your real need shrinks every year as the mortgage shrinks, debts clear, and fewer income years remain. Hover to see the figure at each age.

Age 35Age 45

How we got there

Income replacement

10 years × your income × 80% (assuming spouse has some income)

$360,000

Debts and mortgage payoff

Wipe out the mortgage and any other debts so your family is debt-free

$320,000

Children's education fund

1 children × $50,000 per child

$50,000

Final expenses

Funeral, legal, and immediate post-death costs

$15,000

Disability coverage check

A working-age Canadian is far more likely to be disabled for 90+ days than to die before 65 - yet most people insure only the death.

Target monthly benefit (65% of income)$4,604
Covered by your group plan$0
Monthly gap to insure privately$4,604

Private own-occupation coverage for that gap typically runs $71-$213/month (rough range - quotes vary by occupation, age, and health). Group LTD also usually ends if you change jobs.

Buy term, not whole life. Whole life and universal life policies cost 5-10x more for the same coverage. The PFC consensus: buy term life from an online broker (e.g. PolicyMe, PolicyAdvisor, or Emma), then invest the difference in your TFSA.