CALCULATOR
Life Insurance Needs Calculator
A coverage amount should come from arithmetic, not a guess. Add up what your family would have to cover, subtract what already exists, and the difference is the cover you still need.
What makes up the number
This is an estimate for planning purposes, not a quote, a benefit statement or financial advice. It does not account for every credit, fee, deduction or personal circumstance. A needs analysis is a conversation, not a formula — this covers the common items but not every situation. Think Insurance Services Inc. is a licensed insurance agency; for advice specific to you, speak to an advisor.
These numbers are a starting point. Talk to an advisor about your own situation.
Talk to an AdvisorHow much life insurance do you actually need?
Add up what your family would have to cover without your income: the years of income they would need replaced, the mortgage and other debts, final expenses, and any education or legacy you want funded. Subtract savings and any cover you already hold. The difference is the gap. A common shorthand is 10 to 15 times annual income plus the mortgage, but that is a starting point, not an answer — it ignores what you already own.
Common questions
Is my group life insurance at work enough?
Usually not. Group cover is often one or two times salary, and it ends when the job does. A personal policy stays with you regardless of employer, and the amount is set by your needs rather than a payroll formula.
How many years of income should I replace?
Long enough for your dependants to reach independence. Ten years is a common default; parents of young children often choose to cover the years until the youngest finishes education.
Should I count my savings against the need?
Count only what your family could genuinely liquidate. Registered savings may be taxed on death, and a home your family will keep living in is not a resource they can spend.
Is bank mortgage insurance the same thing?
No. Bank-issued mortgage insurance pays the lender, and the amount falls as the mortgage is paid down. A life insurance policy pays your family, who can then choose whether to clear the mortgage or use the money for something more urgent.
Figures and sources
This calculator uses 2026 figures. Government amounts are reset regularly — CPP each January, OAS every quarter, tax brackets each January.
Last reviewed: 19 August 2026
Want this checked against your own numbers?
Send us what you have and we will tell you whether the result holds up for your situation.