Opens our term life quote with this amount filled in. The recommendation is the gap rounded up to the next $10,000.
How this works. Each method answers "how much life insurance?" differently.
Income replacement capitalizes lost income forever (need = income ÷ real return), so it
runs highest. Human life value takes the present value of your earnings only up to
retirement, so it lands lower. Capital needs adds up the actual lump sums your family
would face (income support, debts, final expenses, an emergency fund and an education fund of
$10,000 per child), then subtracts assets and coverage already in place. In every method the
coverage gap (grey vs coloured bar) is what new insurance would fill.
Educational illustration of standard Canadian insurance concepts. Figures are illustrative, not an insurer’s rates.
Illustration only, not a quote or advice. Figures are simplified for education and do not
reflect any specific insurer's rates. Consult a licensed advisor.