Life Insurance Calculator

Life insurance isn't for you but for those you leave behind. Our Life Insurance Calculator lets you see into the future so you can see how much life insurance you really need to leave the legacy you want.


Want to save money on your next life insurance policy?

Use our comparison tool to find the right coverage at the right price.

What is a life insurance calculator? 

Do you have loved ones who depend on you financially?  If the answer is yes, you need life insurance. But how much coverage do you actually need? Our life insurance calculator helps you determine the amount of life insurance you need to protect your family from financial hardship after you die. Once you have that information, you can shop for the right kind of life insurance for your needs. 

With the Hardbacon Life Insurance Calculator, you can add up all your financial obligations to calculate the appropriate amount of life insurance for your needs. You can test different scenarios to see how changes to things like the years of income you want to replace, funeral expenses, your mortgage balance, and other important costs impact the amount of life insurance coverage you need. Once you know how much life insurance you need, you can compare life insurance quotes. 


How to use the Hardbacon Life Insurance Calculator

It’s super easy to use our calculator. All you have to do is type the numbers in the right spot, and we do the rest. Don’t worry, we’ve labelled everything for you. Before we get started, you need to have some numbers on hand, such as: 

Burial expenses:  this is where you enter the estimated cost of your funeral. 

Years of income you want to cover: enter the number of years you think that your family will still need your annual income to cover expenses and live comfortably. 

Annual net income after death: this is how much money you currently make per year after income tax and other deductions. 

Money in savings and investment accounts: here, you can include the total value of any savings and investment accounts you may have. 

Mortgage: if you have a balance owing on your mortgage and want to include it in your life insurance coverage, enter the amount here. 

Outstanding loans: if you have any other outstanding loans such as credit cards, car loans, student loans, etc, then add the balances together and enter the total here. 

Children’s education costs: if you would like your life insurance to pay for your children’s education, like private school or university, enter the estimated cost here. Use the “Add Child” button to enter the estimated cost for each child you have.  

One-time expenses you wish to cover: if there are any one-time expenses or special provisions in your will that you would like your life insurance to pay for, enter the cost here. If there is more than one type of expense you wish to cover, you can add each using the “Add Expense” button. 


Understanding the results of the life insurance calculator

After you have finished inserting the numbers into the Hardbacon Life Insurance Calculator, it will add the costs together, and subtract any savings and investments accounts you have. You will find the results beneath the calculator, under the heading “The approximate amount of life insurance you need is.” 

The approximate amount of life insurance you need

Based on the information you have provided, this is the estimated total amount of life insurance you will need. Now that you have this information, you can compare life insurance quotes. Keep in mind that the cost of your life insurance depends on factors like the type of policy you choose, your age, and your health status. 

Once you know how much life insurance you need to maintain your family’s standard of living, you can find the right type of life insurance that fits your budget. Alternatively, you can decide what needs to be covered after you die, what doesn’t, and then adjust the Life Insurance Calculator inputs accordingly. The Hardbacon Life Insurance Calculator helps determine if you are either under-or over-insured, so you can leave the legacy you want.


Learn more about the life insurance calculator inputs 

Choosing the right amount of life insurance coverage can be overwhelming. There are many variables that impact how much coverage you need and the cost of your life insurance premiums. Below is a description for each input of the Life Insurance Calculator, and how to estimate the costs. 

Burial expenses

The average cost of a funeral in Canada is about $10,000. Burial expenses are all the associated costs of your funeral, and how you would like your body to be handled after your death. Burial expenses are also referred to as funeral expenses and can include things like a burial plot, headstone, cremation, casket, urn, catering, venue rental, flowers, etc. Some people choose to pre-arrange their funeral and pay for it in advance. The kind of funeral you want will have the biggest impact on how much it costs. By factoring funeral expenses into your life insurance coverage, you help protect your family from a major financial burden. 

How many years of income will you need to cover?

The purpose of life insurance is to replace your income in order to protect your family from financial hardship after you die. The years of income you would like to replace come down to your personal situation and budget. However, a general rule of thumb is to have enough life insurance coverage to replace approximately 10 years of your gross annual salary, or the number of years between now and retirement. Others may choose to only replace their salary for the number of years until their children turn 18. Ideally, you want enough life insurance to cover both current and future living expenses for the amount of time your loved ones would be negatively impacted by the loss of your income. 

Annual net income required after your death

This simply refers to your annual take-home pay after income tax and other deductions. Not everyone can afford enough life insurance to replace their gross, before-tax salary. At the very least, you should have enough to cover your net annual income for as long as possible. That’s because you don’t actually receive your full income while you are alive and working. Depending on your tax bracket, a portion is withheld for income tax and other deductions. The remaining amount is called your net income;  it is the amount of money you actually receive and live on. For example, if you live in Manitoba and make $50,000 a year, your net annual income is actually only $37,595. If you were to pass away, you should have enough life insurance to cover at least $37,595 a year for as long as it makes sense for your family and financial situation. 

How much money do you have in savings and investment accounts? 

Your savings and investment accounts are financial assets that can be used to cover your financial obligations after you pass away. Or your family may choose to keep certain assets like investment accounts and benefit from the returns. You should have enough life insurance coverage to fill the gap between the value of your current assets and your long-term financial obligations. Therefore, the value of your assets is subtracted from the sum of the financial obligations you wish to cover; reducing the amount of life insurance coverage that you need. 


If you would like your loved ones to remain in their home worry-free, you can include your outstanding mortgage balance in your life insurance coverage calculation. To find out how much you still owe on your mortgage, refer to your monthly or annual mortgage statement, or contact the financial institution that financed your mortgage. Some choose enough life insurance to pay off the remaining mortgage balance in full, while others choose enough years of income replacement to cover the monthly mortgage payment. The right decision for you will depend on your unique situation, needs, and budget.  

Outstanding loans

Your loved ones won’t inherit your debt, but that doesn’t mean it just goes away when you die. Most forms of debt need to be settled with the proceeds of your estate; the value of everything you own. Debts like personal loans, car loans, lines of credit, or unpaid taxes must be paid for with the assets you left behind. Your beneficiaries, or heirs, only get what’s leftover. Depending on how much debt you have, that could cause financial hardship for your loved ones. You can protect the value of your estate, and the people you love, by making sure you have enough life insurance to cover your debts. Add together everything you owe and enter the sum into the Hardbacon Life Insurance Calculator. 

Children’s education costs

In Canada, the average cost of a bachelor’s degree is about $30,000 for a 4-year program. If you want your children to access higher education without financial hardship, you should include the cost of post-secondary education into your life insurance coverage. You should also include any current education-related costs you’re responsible for right now, like private school tuition or extra-curricular activities. If you have multiple children, the Hardbacon Life Insurance Calculator lets you add in the estimated education cost for each child separately with the “Add Child” button. 

Are there any one-time expenses you wish to fund? 

You may want to cover the cost of a one-time expense or a special gift for loved ones after you die. That could be a family vacation, pre-arranged flower deliveries on special dates, or even a sum of money for a child’s future wedding. Whatever you choose, you can factor the cost into the Hardbacon Life Insurance Calculator. If there are multiple expenses you would like to cover, you can add each separately along with when you think the expenses will occur, using the “Add Expense” button.

Frequently Asked Questions

  • 1. Do I really need life insurance?

    If you have loved ones, either family or not, who depend on your income, then yes, you need life insurance. The type of life insurance and coverage amount depends on your personal financial situation and needs. Most people choose enough life insurance to cover the expenses that remain after they pass away, and to take care of their family’s financial needs. That can include covering funeral costs, paying off a mortgage, replacing your income for a number of years, paying for your children’s education, etc.


  • 2. How to calculate the amount of life insurance needed

    To calculate how much life insurance you need, use the Hardbacon Life Insurance Calculator. You can also calculate your insurance needs yourself by adding up all the expenses you wish to cover like your funeral, mortgage, children’s education costs, years of income you want to replace, then subtract all your assets like money in savings and investment accounts. 


  • 3. How to calculate life insurance premiums

    Generally, the cost of your monthly life insurance premiums is a rate per $1000 of coverage. The cost of your life insurance premiums depends on your rate. Your rate reflects the amount of risk you pose to the insurance provider; the likelihood you will die and cost the insurer money. Things that impact your risk level are gender, age, health status, type of life insurance policy, and how much coverage you need. Premiums differ considerably from person to person because each situation is unique. Generally, all things held equal, men are charged higher premiums than women, and smokers are charged more than non-smokers.


  • 4. How do I buy life insurance?

    With our Life Insurance Comparison tool, buying life insurance has never been easier. Simply answer a few quick questions and select your desired coverage amount. In less than a minute, you’ll be able to compare dozens of life insurance quotes for both permanent and term life insurance policies. Alternatively, you can buy life insurance directly from an insurance provider, or you can work with an insurance broker. 


  • 5. Which is better, permanent life insurance or term life insurance?

    Most Canadians benefit more from the lower premiums and better flexibility of a term life insurance policy versus a permanent life insurance policy. However, the right insurance policy for you depends on your unique financial situation and needs. High-income earners and those with a high net worth who want to pass on their wealth may choose a permanent policy for the tax advantages. Anyone who has long-term, persistent financial commitments that would need to be covered no matter when they die, like caring for a spouse or child with a chronic illness or disability, may also choose a permanent policy.


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