WealthPillar · Free calculator
Life insurance needs calculator
Most families need enough life insurance to replace the income they would lose, clear the mortgage and debts, cover final costs and fund the children's education, minus the coverage and savings already in place. Enter your own numbers below. The estimate updates as you type, and nothing you enter leaves your browser.
How much life insurance do you need?
Example figures are filled in. Replace them with your own.
Your estimate
General education only, not advice. Coverage depends on underwriting. WealthPillar is paid by insurer commission.
How does this life insurance calculator work?
It uses the needs method that advisors in Canada start with in a first review. It adds up what your family would need if you died tomorrow, then takes away what is already there.
- Income. The share of your take-home pay your family would need, for the number of years you choose. The calculator turns that stream of income into one lump sum today, assuming the payout earns the growth rate you set after inflation.
- Debts. The mortgage and any other loans your family would want to pay off.
- One-time costs. Funeral and estate costs, an education fund for each child, and any tax due at death.
- What you have. Life insurance you already hold, through work or on your own, and savings your family could use.
The difference is the gap. If it is above zero, that is a starting point for how much coverage to price. Rounding up to the next ,000 is common because policies are usually sold in round amounts.
Why take-home pay and not salary?
Because your family would live on what you bring home. In most cases a life insurance payout to a named beneficiary is not taxed as income, so replacing gross salary would overstate the need. If you are self-employed or paid by dividends, use what you take out of the business for the household in a normal year.
What this estimate leaves out
- Group coverage can end. Life insurance through work usually stops when you leave the job. If you enter it as coverage you have, ask yourself whether you would still have it in five years.
- Government benefits. The CPP death benefit is a one-time payment of up to ,500, and survivors may get a monthly CPP survivor's pension. These are small next to most mortgages, so the calculator ignores them.
- Your partner's income. If your partner earns, their pay already covers part of the household. Lower the share your family would need to reflect that.
- Business owners. Cover the company needs if you die (a key person or a buy-sell agreement) is a separate question. Try the key person and buy-sell calculators.
Common questions
How much life insurance do I need in Canada?
Enough to cover your family's income needs for the years they would depend on you, plus your debts and one-time costs, minus the coverage and savings you already have. Rules of thumb such as ten times income are a rough check only, because they ignore your mortgage, your children's ages and what you already own.
Should I count my group life insurance from work?
Count it, but treat it as temporary. Group coverage is often one or two times salary and usually ends when you change jobs or retire. Many people keep personal coverage for the core need and treat group cover as extra.
How many years of income should I replace?
A common choice is until your youngest child finishes school, or until the mortgage would be paid off. Families with young children often choose 20 years or more. Couples close to retirement may need far less.
Does this calculator tell me whether to buy term or permanent insurance?
No. It estimates how much coverage the needs add up to. Whether part of it should be term or permanent depends on how long each need lasts, which is a separate conversation. The personal plans page explains the difference.
Related calculators
Life insurance covers death. Illness and injury are more likely before 65 and are covered differently: see the critical illness and disability calculators. All of them are on the calculators page.
Book a free review or WhatsApp +1 942-667-7723
General education only. Not individualized insurance, financial, tax or legal advice. Figures use 2026 rates and are estimates. All coverage is subject to underwriting and the terms of the policy. WealthPillar is paid by insurer commission.