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Life Insurance Calculator

Estimate how much life insurance is required to cover your family's needs if something happens to you.

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Include partner detailsInclude partner details

Immediate Cash Needs

  •  
    YOU
    PARTNER
  • Enter the outstanding balance on your mortgage, or 1-3 years of rent payments.

    YOU
    $
    PARTNER
    $
  • Include credit cards, lines of credit and other loan balances.

    YOU
    $
    PARTNER
    $
  • Include funeral costs, accounting fees, estate settlement expenses, etc. We suggest $20,000.

    YOU
    $
    PARTNER
    $
  • If you have dependents pursuing postsecondary education, include estimated costs for tuition, room and board, books, etc., per child, minus amounts already saved. We recommend a minimum of $10,000 per year, per child.

    YOU
    $
    PARTNER
    $
A
Total immediate cash needed
YOU
PARTNER

Survivor income needs

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    YOU
    PARTNER
  • How much money will your family need to maintain their lifestyle when you're gone? We suggest 60% of your current income.

    YOU
    $
    PARTNER
    $
  • We suggest funding to your partner's age 65, or the length of time your children will live at home.

    YOU
    PARTNER
  • We suggest 2%.

    YOU
    %
    PARTNER
    %
  • In most cases, funds invested to provide an income stream (such as a lump sum payment from a life insurance policy) prioritize safety of principal over long-term growth. So, we suggest using a conservative rate of return (2–3%) here.

    YOU
    %
    PARTNER
    %
B
Capital required for survivor income

This calculation assumes the inflation rate and the after-tax investment rate of return you entered above, with depletion of funds by the end of the period selected.

YOU
PARTNER
C
Total life insurance required (A + B)
YOU
PARTNER

Current life insurance and other assets

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    YOU
    PARTNER
  • Include life insurance from your Provincial/ Territorial Medical Association, other group life insurance, and individually owned term, universal or whole life insurance.

    YOU
    $
    PARTNER
    $
  • Include any savings available for immediate use. Do not include any assets intended to provide retirement income. Include CPP death benefit of $2,500 (if eligible).

    YOU
    $
    PARTNER
    $
D
Current coverage and funds available
YOU
PARTNER
E
Additional life insurance required (C - D)

This calculation is for illustrative purposes only. To discuss your individual needs, contact an MD Advisor for a referral to an insurance specialist.

YOU
PARTNER
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Assumptions
This calculator rounds to the nearest dollar.

The information contained in the calculator and the results obtained are to be used solely for illustrative purposes ONLY. You are encouraged to contact your MD advisor for referral to an MD insurance specialist for a more in-depth discussion of your individual insurance needs.

Disclaimer
The information presented here is not intended to offer foreign or domestic taxation, legal, accounting or similar professional advice, nor is it intended to replace the advice of independent tax, accounting or legal professionals. Incorporation guidance is limited to asset allocation and integrating corporate entities into financial plans and wealth strategies. Any tax-related information is applicable to Canadian residents only and is in accordance with current Canadian tax law including judicial and administrative interpretation. The information and strategies presented here may not be suitable for U.S. persons (citizens, residents or green card holders) or non-residents of Canada, or for situations involving such individuals. Employees of the MD Group of Companies are not authorized to make any determination of a client’s U.S. status or tax filing obligations, whether foreign or domestic. MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies. MD Financial Management Inc. is owned by the Canadian Medical Association.

Insurance products are distributed by MD Insurance Agency Limited, a CMA company. All MD employees dealing with clients regarding insurance products hold life licenses.