Estimating Life Insurance Needs Using the Family-Need Method. You and your spouse are in good health and have reasonably secure careers. You make about $65,000 annually and have opted for life insurance coverage of three times your salary through your employer. With your spouses income, you are able to absorb ongoing living costs of $45,000 a year. You own a home with a $280,000 mortgage. Other debts include a $10,000 car loan, $5,000 student loan, and $3,000 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 $80,000 to cover the costs of a four-year university program for each of your two children ages two and four. To date, you have accumulated $15,000 toward this goal in an RESP. Should you die, your beneficiaries would receive a $2,500 death benefit lump-sum payment from the Canada Pension Plan. You also have $25,000 in your company pension plan. Average funeral expenses are $10,000. Your other financial assets are as follows: Bank accounts $2,100 Term deposits (3 months) 3,000 TFSA High Interest Savings 1,000 Stock investment account RRSPs 2,500 10,500 Use the family-need method to determine your life insurance needs.