You and your spouse are in good health and have reasonably secure careers. You make about $45,500 annually and have opted for life insurance coverage of three times your salary through your employer.
With your spouse's income, you are able to absorb ongoing living costs of $55,500 a year and you desire a three month emergency fund.
You own a home with an $90,500 mortgage. Other debts include a $15,250 car loan, $7,100 student loan, and $4,050 charged to credit cards.
In the event of your death, you wish to leave your family debt-free. One of your most important financial goals involves building an education fund of $71,000 to cover the cost of a three-year university program for your two-year-old child.
To date, you have accumulated $25,500 toward this goal. Should you die, your beneficiaries would receive a $3,550 lump sum payment from the Canada Pension Plan and $20,500 from your corporate pension plan.
Your other financial assets are as follows:
Bank accounts $ 3,150
Term deposits (3 months) 4,050
Canada Savings Bonds 2,050
Stock investment account 3,550
Use the family need method to determine your life insurance needs