💰 SAVINGS & RETIREMENT · UPDATED 2026

Life Insurance Needs Calculator

Calculate exactly how much Canadian life insurance you need using the DIME method and Human Life Value approach — including income replacement, mortgage, debts, and children's education.

🛡️

Most Canadians are significantly underinsured

Studies show the average Canadian family is underinsured by over $400,000. Many people guess at a round number like $500K without calculating what their family actually needs to maintain their standard of living. This calculator gives you the real number.

📋 Your Details

👤 Personal Information
Used to estimate policy cost and coverage period
Affects term insurance premium estimates
Children + other people who depend on your income
💰 Income & Debts (DIME Method)
$
Your gross annual employment income
Until youngest child is independent / retirement
$
Outstanding balance your family would need to pay off
$
Car loans, credit cards, student loans, lines of credit
$
Estimated $40K per child for post-secondary education
$
Funeral, estate costs, legal fees — typically $15K–$30K
✅ What You Already Have
$
Group benefits + any personal policies you currently hold
$
TFSA + RRSP + non-registered accounts your family could use
$
Income your spouse/partner would continue to earn
%
Rate your family could earn investing the death benefit

🛡️ Additional Life Insurance You Need
$0
Loading...
Total Need (DIME)
$0
Already Have
$0
Coverage Gap
$0
% Covered
0%
Total Need (DIME)
$0
Gross coverage required
Already Covered
$0
Insurance + savings + spouse
Coverage Gap
$0
Additional insurance needed
Human Life Value
$0
Alternate calculation method
Recommended Coverage
Higher of DIME or HLV gap
Monthly Benefit (if invested)
$0
Death benefit at 5% return

🔢 DIME Method Breakdown

The DIME method is the most widely used life insurance needs framework. Each letter represents a category of need your family would face.

D
Debt (non-mortgage)
$0
All debts your family inherits
I
Income Replacement
$0
0 years × $0/yr
M
Mortgage
$0
Mortgage paid off completely
E
Education
$0
Children's post-secondary costs

🔴 What Your Family Needs

Debts (D)$0
Income (I)$0
Mortgage (M)$0
Education (E)$0
Final Expenses$0
Total Need$0

✅ What You Already Have

Existing Insurance$0
Savings & Investments$0
Spouse's Income (PV)$0
Spouse income discounted over coverage period
Total Assets$0
Current Coverage Level 0%
0% (no coverage) 50% 100% (fully covered)

📐 Two Methods Compared

Both methods are valid. Financial advisors typically recommend the higher of the two as your coverage target.

🔢 DIME Method

$0
Debt + Income + Mortgage + Education

Best for: families with children, mortgage, or significant debt. Most comprehensive approach.

💼 Human Life Value

$0
Present value of future earnings

Best for: high earners or when income replacement is the primary concern. Simple and quick.

💰 Estimated Monthly Term Insurance Cost

Approximate monthly premiums for the recommended coverage amount. Term life is almost always the right choice for income replacement. Get quotes from multiple insurers.

⚠️ These are estimates only. Actual premiums depend on your health history, family history, BMI, and the insurer. Get quotes from a licensed Canadian life insurance broker — comparison shopping can save hundreds per year.

💡 Life Insurance Tips for Canadians

⏰ Buy Term While You're Young

A healthy 35-year-old can get $1M of 20-year term coverage for roughly $50–$70/month. Wait until 45 and that same coverage costs $150–$200/month. Every year you delay costs you.

🏢 Don't Rely on Group Benefits

Employer group life insurance (typically 1–2× salary) is not enough and disappears if you leave your job. Use it to supplement — not replace — your personal coverage.

📋 Term vs. Permanent Insurance

Term insurance covers you for a set period (10, 20, 30 years) at low cost. Permanent (whole life, universal life) is much more expensive. For most Canadians, term insurance + TFSA/RRSP beats permanent insurance.

🧾 Life Insurance Is Tax-Free

In Canada, life insurance death benefits are received 100% tax-free by your beneficiaries. Unlike RRSPs which trigger a tax bill on death, life insurance proceeds bypass the estate and flow directly to loved ones.