Guide
How much life insurance do you need?
Calculator and explanation: how to account for years of earnings, debt, education expenses and existing protection.
The most straightforward approach is to calculate what your income would support for your family and then deduct any resources you've already set aside. The answer doesn't have to be precise—insurance comes in standardized increments, and the objective is simply a total that would sustain your household during the critical years.
Coverage estimate
Estimate = income × years + debts + education − what you already have, rounded to the nearest $5,000. Think of this as your starting estimate, not as professional guidance.
Why those inputs
Years of income to replace. Insurance professionals typically suggest replacing between ten and twenty years of earnings; the ideal timeframe for your family depends on how long they would need ongoing assistance. In Ontario, families with young children frequently opt for the longer timeframe since costs for childcare, housing and schooling often peak concurrently.
Debt obligations. Most people carry a mortgage as their largest debt. Insurance coverage large enough to pay off such debts gives your dependents options if something happens to you.
Education costs. Make a rough yearly estimate per child using current dollars. Adding this now is simpler than buying extra protection down the road.
Assets you currently own. Bank accounts available to draw on, as well as employer-provided coverage. Keep in mind that employer plans typically cease when you leave your job, so it's prudent to factor in only a portion.
Once you know your target amount, the quoting system will show you how much that coverage would cost for terms ranging from 10 to 30 years across all available carriers. Many people choose a slightly higher amount than their calculation suggests because the per-month cost increase is modest when you're younger.