Insurance Needs Analysis

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)

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.)

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)