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 $0

Results: Your life insurance shortfall

Amount Of Life Insurance Needed For Survivors $0


Note: This calculator is intended to provide estimates only. Please speak to a licensed insurance broker at Freestone Capital Inc. for a recommendation tailored to your specific life insurance needs.