Needs Analysis Worksheet

How Much Life Insurance Do You Need?

How much life insurance do I need

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This is the one of the most common questions asked by consumers considering purchasing life insurance. Your insurance need depends on your circumstances. If you want a simple approach to estimate your need, multiply your annual income by 8X.

Answer the following questions to estimate your life insurance needs:

Mortgage & Debt

Mortgage & Debt

How much debt would need to be paid off if you die? Estimate the Total of Mortgage, Loans or Credit Cards to be paid off.

The average amount of a Canadian mortgage for a new home is $250000. (Stats Can 2012)
Living Expenses

Living Expenses

How much money will your family need to maintain their standard of living over perhaps several years if you die? Multiply your annual income by the number of years it would need to be replaced.

Canadians spend on average $75433 for Total Annual household expenditures. Canadian Avg household includes 2 Adults and 2.2 children. (Stats Can 2012).
Final Expenses

Final Expenses

Estimate how much money your family would need to meet immediate expenses such as funeral costs and legal expenses?

The average funeral in Canada costs $8000 - $10000 (Funeral Service Association of Canada (FSAC) - October 2013). Legal, accounting and probate fees extra.
Existing Insurance

Existing Life Insurance

Do you have any existing life insurance? Enter total coverage amount of all your existing life insurance, including any Empire Life Simplified 10 and Simplified 20 coverage currently on your life.

The average employee benefits group coverage is 2X salary (Benefits Consultant 2015).
Savings or Other Financial Resources

Savings or Other Financial Resources

Enter the amount of any savings or other financial resources that would be used to pay debts and expenses if you died.

Total Debts and Expenses

Total Debts and Expenses

Total Existing Sources of Income

Total Existing Sources of Income

Total Need

Total Life Insurance Needed

Total Need =

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