Total Coverage Needed
$1,700,000
Needs Breakdown
Recommended Term
20-Year Term
A 20-year term covers you until retirement and your children's independence.
Estimated Monthly Premiums
A licensed broker can help you find the right policy at the best rate.
Get Quotes NowThe DIME method is a widely-used framework for calculating your life insurance needs. It stands for:
All outstanding debts including your mortgage, car loans, credit cards, lines of credit, and student loans. Your family should not inherit your debt.
Multiply your annual income by the number of years your family would need financial support. Consider until your youngest child reaches adulthood.
Your full mortgage balance. Life insurance ensures your family can keep their home without worrying about making mortgage payments.
Estimated cost of post-secondary education for each child. In Canada, budget $40,000-$80,000 per child for a 4-year degree.
Our calculator goes beyond DIME by also factoring in funeral costs, existing savings and investments, and your spouse's income to give you a more precise coverage recommendation.
| Feature | Term Life | Whole Life |
|---|---|---|
| Duration | 10, 20, or 30 years | Lifetime (to age 100) |
| Monthly Cost | Lower (starts cheap) | 5-10x more expensive |
| Cash Value | No | Yes (builds over time) |
| Best For | Income replacement, mortgage | Estate planning, wealth transfer |
| Flexibility | Can convert to whole life | Limited changes after purchase |
Disclaimer
This calculator provides estimates for educational purposes only. Actual life insurance premiums depend on your health, medical history, lifestyle, occupation, and the specific insurer. Premium estimates shown are for non-smoking individuals in good health. Contact a licensed insurance professional for personalized quotes.
A common rule of thumb is 10-15 times your annual income, but the actual amount depends on your specific situation. Use the DIME method above, or our calculator, to factor in your debts, dependents, income replacement needs, and existing savings for a more accurate figure.
For most Canadians, term life insurance provides the best value. It costs significantly less and covers you during your highest-need years (while raising children and paying a mortgage). Whole life insurance makes sense for estate planning, wealth transfer, or if you need permanent coverage.
If no one depends on your income, you may only need enough coverage to cover funeral expenses and any debts that would burden your estate. However, buying term insurance while young and healthy locks in lower rates for the future.
Pre-existing conditions like diabetes, heart disease, or cancer history can significantly increase premiums or affect eligibility. However, many insurers offer simplified or guaranteed issue policies. A broker can help you find the best option for your health situation.
Many Canadian employers offer group life insurance, typically 1-2x your annual salary. While this is a good starting point, it is usually not enough coverage. Group plans also end when you leave your job, so having your own policy provides continuity.