Getting Started: Insurance Needs Analysis

This section serves as a basic insurance needs analysis to help illustrate where they may be a gap in your current insurance coverage. This is only for educational purposes, please consult with your insurance advisor.

Life Insurance Needs Analysis:

Life insurance provides coverage in the case of an unexpected death. This is very important when you have dependants who rely on your income.

• Existing Life Insurance Benefit: The total of your current life insurance coverage including both term and permanent policies
• Dependants: Are there children/parents that depend on your financially?
• Monthly After Tax Income: What is your net income after deductions and tax?
• Years to Retirement: How many years until you retire?
• Discount Rate: This is the rate of return used on the any insurance proceeds. The platform default value is 4%
• Other Life Insurance Needs: Are there any other lump sums or goals that need funding with life insurance (eg: debt payoff, tax obligation, child's education)

The Present Value of your Life Insurance Needs is how much life insurance you need to cover your after tax monthly income pre-retirement plus any other life insurance needs. We use this to calculate whether there may be an insurance gap.

Note: Make sure that all life insurance values are entered in the Insurance Section of the Discovery Phase. This is the information that the AI strategies will use in the calculation of survivor scenarios.

Critical Illness Needs Analysis

Critical illness insurance provides a lump-sum amount in the case of a severe illness. There are typically between 25 and 26 very specific illnesses covered depending on the provider. If you are diagnosed with one of these illnesses these funds can be used to cover increased expenses during the illness or seek alternative medical treatment.

• Existing Coverage: Total of all coverage both private and employment
• Monthly After Tax Income: What is your net income after deductions and tax?
• Months of Income Required: How many months of net income would you like to cover?
• Additional Costs: Consider whether there are any additional costs (medical, child care, other) you would like to cover with this insurance

Long-Term Disability Needs Analysis

Long-term disability insurance provides coverage in the event of a long-term disability. Long-term disabilities are one of the most common types of income disruptions in Canada with approximately 6% of Canadians experiencing an income disruption between age 35 and 65.

• Existing Coverage: Total of all coverage both private and employment
• Monthly After Tax Income: What is your net income after deductions and tax?
• Other Monthly Needs: Are there needs not captured in your current expenses that you would want covered?