Life Insurance (Canadian)

Are you thinking of purchasing life insurance policy but don’t know the amount for what you should get life insurance coverage? Your tensions are over! With an ease, this ACalculator will find out value of assets to cover expenses, future income after taxes, future expenses, and expenses at death. Switching to the integrated reports, you will get information regarding your family’s future expense, future income, total assets, incomes and many more.
Current life insurance coverage
Your current life insurance coverage amount.
Years insurance must last
Expected number of years the amount should provide income and expenses for your spouse after your death.
Inflation rate
The anticipated rate that will increase your living expenses. As a rule, this rate is adjusted by increasing income and expenses for the required number of income years. If there is any deficit between the expected income and expenses, it is subsidized by the income earned from the life insurance policy.
Return on investments (after-tax)
This is the after-tax rate of return being expected to earn each year. The after-tax return on investment (ROI) is calculated for earnings from the insurance and any educational savings if available. This is the yearly expected rate of return you have chosen. In reality, the authentic rate of return may not be alike, rather lower, because you may need this emergency fund at any time. So, it is wise to have constant but stable inflows of funds and therefore invest with a conservative approach. As high return is subject to high risk, you can choose short-term investment opportunities to offset the time volatility and higher risk premium. Theoretically, this is the future rate of inflows predicted at present time. So, it is usual that the actual return will fluctuate that of expected. Incidentally, if you are charged with taxes for interest earning, dividend or other capital gain, still your anticipated rate will be considered as after-tax for the purpose of calculation.
Cash and savings
The total amount of all your cash in hand and savings in accounts.
The total amount of all investments that you are willing to use toward your living expenses.
Taxes on assets
Amount of taxes on assets to be paid after your death.
Probate costs
The total amount of legal fees required to distribute your assets after your death.
Funeral costs
Total amount of costs required for funeral.
Uninsured medical costs
Value of uncovered medical insurances including any deductibles.
Debt repayment
The total amount of unsettled debts you want to pay off after your death. The remaining will be left for your family’s living expenditure.
Spouse income from work
Earning that is expected after your death from your spouse. If your spouse needs further training or education, you must assure that the beginning year for this earning provides enough time to complete.
Other income
The amount of other income receivables by your spouse.
Living expenses with children
All monthly costs (excluding child care) that would be required if your spouse will be living with children.
Living expenses without children
Total monthly costs that would be required if your children will not be living at home. This should include child care costs.
Children’s education expenses
Monthly costs of educating your children.
Retraining and education for spouse
Total cost that would be required to retrain and educate your spouse.
Other expenses
This will include all other expenses incurred monthly that are not included so far.