Tools & Resources

Life Insurance Needs Calculator

Most people are underinsured. Find out how much coverage you actually need using the DIME method — the most reliable framework for calculating life insurance.

D

Debt

Everything that would need to be paid off immediately

$
$
$
$
$
Average funeral in Canada: $10,000–$15,000. Estate lawyer fees, probate, executor costs can add another $5,000–$20,000.
I

Income Replacement

Your family's income need if you're gone

$
years
Until youngest child is independent, or until your spouse could fully support themselves. 20 years is a common starting point.
$
This reduces the income replacement needed. Leave at $0 if not applicable.
M

Mortgage

Outstanding balance to be paid off

$
E

Education

Future education costs for your children

$
Average 4-year university in Canada (tuition + living): $60,000–$100,000. Adjust for your situation and existing RESP savings.
$

Existing Coverage & Assets

$
Include employer group coverage (typically 1–2x salary) and any private policies.
$
RRSP, TFSA, savings that your family could access. Home equity excluded — they'd need somewhere to live.

Your Coverage Recommendation

D Debt & final expenses $0
I Income replacement $0
M Mortgage payoff $0
E Education fund $0
Total need $0
Less existing coverage & assets $0
Coverage gap $0

The DIME Method

DIME is a framework for calculating life insurance needs:

  • D — Debt: All outstanding debts plus final expenses
  • I — Income: Years of income your family would need
  • M — Mortgage: Full remaining balance
  • E — Education: Future costs for your children

Total DIME less existing coverage and liquid assets = your coverage gap.

Term vs. Permanent

For most families with a mortgage and young children: term life insurance is the right answer. It's affordable, straightforward, and provides maximum coverage during the years you need it most. A 20-year term covers your mortgage and income replacement period for a fraction of the cost of whole or universal life.

What this doesn't calculate

This calculator gives you a solid starting number. It doesn't account for: investment returns on a lump-sum payout, inflation over time, specific tax treatment of death benefits (generally tax-free in Canada for named beneficiaries), or your spouse's CPP survivor benefit. A licensed insurance advisor can refine these numbers for your situation.