Many factors go into determining how much life insurance you might need. These include:
the amount of your debts,
any final expenses and estate taxes that will be owing on your death,
the current and future care and education costs for your children, and
the income your family relies on to maintain its lifestyle.
An insurance agent can take you through a detailed analysis of how much insurance (and what types) you may need.
4 questions to ask yourself
The amount of life insurance you get will depend on your answers to these 4 questions:
Do you want the insurance to replace all or just some of your lost income?
Do you want your family to live debt free or just continue paying down debt?
Will you spend the capital from the insurance payment or just the investment earnings?
How much can you afford to pay for insurance?
Calculate your life insurance needs: Most insurance companies have calculators on their websites.
Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca