FAQ / Resources

How much life insurance should I own?

A typical suggestion from a financial planning perspective is 6 to 8 times your annual earnings – but this is an oversimplification. Few people are actually ‘typical’ and it’s important to factor in other aspects of your life for a more accurate picture and plan. The more obvious factors include:

  • income sources (and amounts) other than salary/earnings
  • death benefits payable from government plans
  • employer-sponsored life insurance
  • marital status
  • spouse's earning capacity
  • other financial dependents, such as children and/or elderly parents
  • special life insurance needs, like mortgage repayment, other long-term credit
  • education savings funds
  • business succession and estate planning needs, etc.

But there are often other unique qualities and activities in people’s lives. We strongly recommend you speak with your Orr Advisor to review your life circumstances and how much insurance you really need.

 

Resources

A Guide to Life Insurance - Canadian Life and Health Insurance Association

http://www.clhia.ca/domino/html/clhia/clhia_lp4w_lnd_webstation.nsf/resources/Consumer+Brochures/$file/Brochure_Guide_To_Life_ENG.pdf

 

A Guide to Disability Insurance - Canadian Life and Health Insurance Association

http://www.clhia.ca/domino/html/clhia/clhia_lp4w_lnd_webstation.nsf/resources/Consumer+Brochures/$file/Brochure_Guide_to_Disability_ENG.pdf