Skip to content
News & commentary

Determining Your Life Insurance Needs

Home News & Commentary Determining Your Life Insurance Needs
Ryan Smillie

Ryan Smillie

Every situation is different and there is no blanket one size fits all formula to determine insurance needs but a good place for most individuals to start is by looking at:

  • Net family income replacement needs: If you earn $100,000 gross annual income or $75,000 net income and you have 10 years until retirement, you can multiply the net income number ($75,000) by the number or years you have until retirement (10) to get a base coverage amount of $750,000.
  • Total Debt: How much mortgage and consumer debt do you have? You want to make sure your family is not burdened with a large debt payment. In most cases you want your life insurance to be enough to pay off all debts and provide an income stream to loved ones. Ex. If you owe more than $500,000 on your mortgage you should probably have more than $500,000 in life insurance.
  • Legacy and Estate goals: Do you want to leave money to pay for your child or grandchild’s education or maybe their first home down-payment? Do you want to give money to a special charity? Do you want to leave money to pay the capital gains tax on a family cabin?

In addition to the above, there are many factors that contribute to insurance needs including but not limited to current savings, age of family members, ability of spouses to earn income and tax liabilities.

Please contact Jon Glougie or Ryan Smillie if you would like to review your current coverage and needs.


This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of iA Private Wealth. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.

How do we elevate your wealth?

It begins with understanding your needs and creating a comprehensive and tailored financial plan to help reduce tax, manage risk and grow your portfolio over the long term. Learn more about how we help you achieve financial security and peace of mind.

News & commentary

November 2022 Portfolio Management Team Update

November 2022 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth November 29, 2022 Market Review Global equities staged an unexpected rally in October for the second time in four months, as investors shrugged off concerns about inflation and rising interest rates, as well as a near-meltdown in UK government […]

Read more

October 2022 Portfolio Management Team Update

October 2022 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth October 25, 2022 Market Review and Economic Environment Global equities plunged in September on escalating concerns about a recession arising from central banks’ attempts to quell inflation through rapid interest rate hikes. The Federal Reserve raised its benchmark interest […]

Read more

September 2022 Portfolio Management Team Update

September 2022 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth September 15, 2022 Market Review and Economic Environment The summer rally that had enabled U.S. indices to claw back half their 2022 losses by mid-August came to a grinding halt in the second half of the month (Figure 1). […]

Read more