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Life Insurance Calculator

How much life insurance do you need?

Use your current assets, expenses and income to calculate your insurance needs. You can adjust the rate of inflation and your expected return on investments to see how these variables impact your insurance needs.

 

Life Insurance Calculator

Your Requirements
Final expenses Include such needs as funeral expenses (typically $5,000 - $10,000) and estimated probate fees.
Debts Include all outstanding debts (mortgages, credit cards and bank loans).
Children's education Include the total cost of college/university education for all children (typically $10,000 per year for 4 years for each child).
Total immediate needs  
Annual Income needs The loss of your income represents the biggest potential financial risk to your survivors. Indicate the pre-tax income that you feel would alleviate this loss. A rule of thumb is 70% of your current income.
Years How long do you want to pay this income to your survivors? Indicate in years how long the income should last.

What's Available
Available assets Your needs should be reduced by any available liquid assets that your survivors would use. Include such things as existing life insurance, investments, etc. that could be drawn upon.

Your Assumptions
Inflation rate Inflation will erode the purchasing power of any fixed income. To adjust for this, indicate an inflation assumption ranging from 0 to 9 percent.
Rate of return on investments Insurance proceeds are typically paid in a lump sum which your survivors can invest to provide for their income needs. A typical rate of return might be 6% for a conservative investor, 8% for a moderate investor and 10% for an aggressive investor. Select a long term investment rate you believe could be earned.
 
You require $ additional life insurance.

 

For more information

  • Request additional information by mail on OTIP's life insurance plans
  • Talk to an OTIP life and living benefits sales representative – call 1-800-267-6847 today!
 
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