- Canadian Tax Resource Blog - http://blog.taxresource.ca -

10 Things Your Life Insurance Should Pay

Do I really need life insurance? Many of us hate to think about our own death. But what would happen financially to your family if you were to pass away?

Would your family be able to cope without your income? Will your family have to move out of their house? Will your children be able to attend university?

These are just a few of the questions we need to ask ourselves. The simple truth is that determining ho much is needed and for what can usually be quantified.

  1. Funeral expenses
  2. Legal fees (to settle your estate)
  3. Income tax liability (capital gains at death)
  4. Probate fees
  5. Loan repayment
  6. Mortgage repayment
  7. Create an emergency fund for your family
  8. Fund your children’s education
  9. Pay bequests to family, friends, or to charity
  10. Replace your income for a period of time (this is a present value calculation)