Life Insurance How Much Life Insurance Do You Need

Helping You Find The Life Insurance Policy That Makes Sense For You

“How much life insurance do I need?” is a common question – and it’s a question you should ask when comparing life insurance to ensure you get the cheapest rates.

For more than 45 years, ThinkInsure has worked with Ontario residents to help them choose life insurance products that will help them meet their specific goals. Whether you take out a policy to protect your family’s financial interests, cover final expenses, or for other financial reasons, we can help you choose a life insurance plan that makes sense for your unique needs.

To help you determine your need for life insurance, we’ve put together some common questions to consider:

Do I Need Life Insurance?

If you have a family to protect, have marginal savings, and want to ensure your dependents are taken care of once you are gone, then you should invest in a life insurance policy. The majority of Canadians will benefit from purchasing a life insurance premium.

What Can I Use Life Insurance For?

What you want to use life insurance for can play a big role in determining how much coverage you will need. Some of the things that people use their life insurance policy for include:

  • Protecting your family’s financial future
  • Protecting your estate
  • Funding your child’s education
  • Enhancing your retirement income
  • Investing and gaining access to cash through your policy

What you plan to use your life insurance policy for will have a bearing on how much and the type of coverage you will need.

Which Type Of Life Insurance Do I Need?

Which kind of insurance should you get? Understanding what you want to use a life insurance policy for can also help you determine the type of life insurance product that makes sense for you:

In general, if you want to provide protection for your family against things like estate taxes or business loans, then permanent or universal life insurance is worth considering. However, if you are only worried about protecting your family from your loss of income and ensure they are financially sound, then a form of term life insurance is ideal.

Learn more about your options by understanding life insurance basics.

How To Determine How Much Life Insurance You Need

To find out how much life insurance you will need, many Canadians fill out a life insurance needs analysis questionnaire. Filling this out and answering questions about your current situation, in addition to using a life insurance premium calculator, can help you to accurately assess your needs and what you should include in your policy.

Here are some of the questions you will need to consider to determine how much life insurance you will need:

How much money will your family need to cover expenses in the event you pass away?

You will need to calculate the following:

  • The cost of final expenses
  • Cost to pay off your mortgage
  • Cost to pay off other loans
  • Emergency savings
  • Cost to pay for your children’s education

How much money will your family need to keep their current lifestyle?

Ask yourself:

  • How much money does your family need to cover monthly expenses?
  • How much do they need to live comfortably?
  • How many years will they need to rely on this income?

What are your current assets?

Ask yourself:

  • What investments, savings, and cash will be accessible?
  • Do you have life insurance through your group benefits?

Answering these questions will help you determine the total amount of life insurance coverage you will need to ensure your family is cared for. Are you ready to find out how much life insurance you need? Talk to one of our brokers today! We are happy to walk you through the process.