STEP 1: Assets and life insurance
Liquid assets
(Cash on hand, GICs, RRSPs and other investments)
Other disposable assets
(Rental property, cottages, farm or business assets)
Total amount of existing life insurance policies
(include group insurance, personal insurance, mortgage insurance)
Total assets available
STEP 2: Liabilities and cash needs
Total mortgage amounts owing
(Residential, commercial etc.)
Total of loans and other debts
(such as bills and credit cards)
Final expenses
(funeral expenses, lawyer fees, income and capital gains taxes)
Education fund
(we suggest a minimum of $10,000 per child per year of schooling)
Other cash needs
(emergency fund, child care, aging parents, etc.)
Total liabilities and cash needs
STEP 3: Income needed by your survivors in the event of your death
Annual income to provide for your survivors
(70% of current income is often selected)
Approximate number of years income is to be provided
Annual rate of return on investments
(before taxes)
Income needs for your survivors


Your Life Insurance Needs
Total liability and cash needs
+
Amount of income needed by your survivors
Total capital required to meet your cash and income needs
-
Total assets
Additional life insurance needed