Life insurance needs calculator
A common way to estimate life insurance is the needs approach: what your family would need if you died, such as part of your income for some years, debts, final expenses and education, minus the cover and savings already in place. Enter your own figures to see the gap. General education, not a recommendation.
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Try an exampleOne click fills the form. Change any number after.
This estimates one person's life insurance need. Run it once for each partner. It doesn't cover disability or critical illness insurance; a licensed agent explains those. For what insurance means for your taxes, see the insurance page.
Your estimate
$675,000
Your family's needs of $985,000, less $310,000 already in place.
General education, not insurance or financial advice. Finvo does not sell insurance. A licensed agent advises on products and coverage.
See every line behind this numberEach need and resource, what it means, questions to take to an agentWant insurance advice on this?
Finvo can connect you with a licensed insurance agent from our partner network who can help with insurance advice if you need it. Finvo itself does not sell insurance. The licensed agent advises on products and coverage; Finvo covers the tax side.
Talk to a licensed agent5.0 on Google · 92 reviews
General education only, not insurance, financial or tax advice. This is a simple needs estimate using the figures you enter. It leaves out taxes on investment income, inflation beyond the return you enter, government survivor benefits, disability and critical illness needs, and your health and the cost of any policy. Finvo does not sell insurance. Finvo can connect you with a licensed insurance agent from our partner network who can help with insurance advice if you need it; the agent advises on products, coverage and cost.
Your insurance needs, line by line
Each need and each resource with a sentence on where it comes from, the gap with and without group cover, and the questions worth taking to a licensed agent. It follows every change you make above.
| Line | Amount |
|---|
What this means
What to do next
Finvo does not sell insurance. Finvo can connect you with a licensed insurance agent from our partner network who can help with insurance advice if you need it: see the insurance page.
How it's calculated
The needs approach is a common planning method, not a government formula. Blank, negative or text boxes count as zero; years are capped at 50 and the return at 10%.
- Yearly support. Your income × the share to replace (70% if left blank).
- Income replacement. At 0% return: yearly support × years. Above 0%: the lump sum that, invested at that return after inflation, pays the same support at the end of each year until it runs out: support × (1 − (1 + r)−years) ÷ r.
- Total needs. Income replacement + mortgage + other debts + final expenses + children × education per child + emergency fund + other goals.
- Already in place. Life insurance you own + group life at work + savings and investments.
- Gap. Needs minus what's in place, or a surplus when what's in place is larger. The gap without group life is shown too.
A couple with two children and a mortgage
Round illustrative figures, not a recommendation. One partner earns $80,000 and wants 70% replaced for 10 years, until the youngest finishes school, with no return assumed.
| Line | Amount |
|---|---|
| Income: $80,000 × 70% × 10 years | $560,000 |
| Mortgage and other debts | $320,000 |
| Final expenses | $25,000 |
| Education: 2 children × $40,000 | $80,000 |
| Total needs | $985,000 |
| Life insurance owned $100,000, group life $160,000, savings $50,000 | −$310,000 |
| Estimated gap | $675,000 |
If the money could earn 3% a year above inflation, the income part would be about $477,691 instead of $560,000 and the gap about $592,691. Without the $160,000 of group cover, for example after a job change, the gap at 0% would be $835,000. Which figure to plan around, and what kind of cover fits, is a conversation for a licensed agent.
Who this is for and what it leaves out
Who this is for
- Families in BC or Alberta who want a rough number before they talk to anyone about life insurance.
- Anyone checking whether group cover at work and savings would be enough on their own.
- Couples comparing the need for each partner: run it once for each.
What it leaves out
- Products, premiums, health questions and which kind of policy suits you: a licensed agent advises on those.
- CPP survivor's pension and death benefit, and the Canada Child Benefit that continues for the children's caregiver (see the CCB calculator).
- Tax on investment income, tax on RRSPs at death, and inflation beyond the return you enter.
- Disability, critical illness and business needs such as key person or buy-sell cover.
Sources, checked 30 Oct 2026
The needs approach and the 70% starting share are common planning assumptions, not government figures. Government benefits are linked so you can look them up; their amounts are not used. General information, not insurance, financial or tax advice.
Want the tax and cash-flow side looked at too?
Book a free 15-minute call by video or phone, or meet us in Surrey, Edmonton or Courtenay. We can go through how a policy you're considering fits your taxes and cash flow. Finvo does not sell insurance; Finvo can connect you with a licensed insurance agent from our partner network who can help with insurance advice if you need it, as explained on the insurance page.
Which office?
Book a free 15-minute call15-minute calls every weekday at 10 am and 2 pm Pacific (11 am and 3 pm Mountain), except holidays.
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Life insurance needs, answered
How much life insurance do I need?
One common way to estimate it is the needs approach: add up what your family would need if you died (replacing part of your income for a number of years, paying off debts, final expenses, education and an emergency fund) and take away what is already there (life insurance you own, group life at work and savings). The difference is the gap. It is a starting point for a conversation with a licensed agent, not a recommendation.
How much of my income should I replace?
There is no rule. Many planners start around 60% to 75% of gross (before-tax) income, the basis this calculator uses, because some of your own costs stop, and then adjust for how many people depend on you and for how long. The calculator starts at 70% as an assumption you can change.
What does the return after inflation do?
A lump sum that is invested can pay out more than its face value over the years. If you expect the money to earn, say, 2% a year more than inflation, the lump sum needed to pay the same yearly support is smaller. At 0% the calculator simply multiplies the yearly support by the number of years, which is the cautious version.
Does group life insurance at work count?
It counts while you have it, so the calculator includes it. Group cover often ends when you leave the job, and the amount is usually tied to your salary, so many people look at the gap with and without it. Employer-paid group term life premiums are generally a taxable benefit on your T4.
Are government survivor benefits included?
No. The Canada Pension Plan pays a survivor's pension and a death benefit to eligible people, and the Canada Child Benefit continues for the children's caregiver, but the amounts depend on contributions, age and income. They are left out so the estimate stays cautious; the official pages are linked in the sources.
Does Finvo sell insurance?
No. Finvo does not sell insurance. Finvo can connect you with a licensed insurance agent from our partner network who can help with insurance advice if you need it. The agent advises on products, coverage and cost; we pass your details on only with your permission, and we can explain the tax and cash-flow side.
Is the information I type saved or sent anywhere?
Only if you ask for the full breakdown. The calculator works in your browser and the summary needs nothing from you. If you add your name and email to open the full breakdown, we save them with the numbers you entered and the results, in our database in Canada, so our team can reply. We don't pass them to an insurance agent unless you ask us to. Never type a SIN or account number.