Ontario · Relationships for life — across generations.
How much life insurance do you need?
There is no single right number, but there is a sane way to get close: replace the income the family depends on, clear the debts you'd leave behind, cover the future costs you planned — then subtract what you already have. That is the working figure.
Start with income replacement
The most common rule of thumb is 10 to 15 times annual income. A $70,000 earner covering a family might look at $700,000–$1,050,000 of coverage. The right multiple depends on how long the income is needed and how much the household can fall back on.
Add the debts you'd leave
The mortgage is usually the biggest. Add any line of credit, car loans, and credit cards. Coverage that clears these means the family keeps the home instead of selling it to pay the bank.
Add future costs
Children's education, a partner's retirement, care for a dependent parent. These are real numbers, so count them. Then subtract any existing coverage, savings, and investments that would soften the gap.
The honest formula
Roughly: (annual income × years to replace) + debts + future costs − existing savings. That gives a defensible starting target, not a sales line. A licensed Ontario advisor fine-tunes it with the family's actual picture.
Term vs whole for the number
If the job is replacing income for a set window — the mortgage years, the kids at home — term life is usually the efficient fit. Whole life is permanent and costs more. Many families layer term now and revisit permanent later. Start with the free calculator.
Questions
- Is 10 times income enough?
- It is a common starting point, not a rule. If there is a large mortgage or young children, you may want more. If there is little debt and savings are strong, less can be defensible. The calculator gives your number.
- Do I count my mortgage in life insurance?
- Yes — the balance is one of the biggest sums your family would need. It is part of the debts side of the calculation, separate from income replacement.
- Is the calculator a quote?
- No — it gives an estimate of how much coverage you might need. The cost of that coverage is a real term-life sample premium, subject to underwriting, confirmed by a licensed Ontario advisor.
Use the free calculator
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