The 5-Step Coverage Kit

Use this guide in 5 simple steps:

1. Identify your motivators

2. Calculate your coverage

3. Pick the best policy fit

4. Gather underwriting details

5. Start applying

By following these steps in order, you’ll have a clear, ready-to-go plan—one you can hand over to a broker or use yourself for quick quotes and faster applications.

Now that you’ve identified your motivators, head to Step 2 to calculate how much coverage you’ll need.

Aim to eliminate these financial burdens so loved ones aren’t responsible.

• Mortgage (~$350,000): Outstanding home loan balance

• Credit card debt (~$4,000): Total of any unpaid balances

• Student loan (~$26,000): Any remaining education loans

• Car payment (remaining balance) (~$20,000): Auto loan payoff amount

• Other payment (personal loan, line of credit) (~$3,000): Catch-all for other debts

Think of everyone who depends on your income or support, either now or in the future.

• Income replacement (e.g., $50k × 5 yrs = $250k): Ensures your family can maintain their lifestyle if you pass away. The total amount will be paid out upfront

• Child post-secondary education (~$60,000): Tuition plus living expenses over multiple years

• Childcare (~$10,000): Daycare, extracurricular activities, or special needs

• Partner support (~$30,000): Temporary support or assistance if your spouse/partner needs time to adjust financially

• Parental care (~$15,000): Possible retirement home fees, medical costs, or home-care support

• Pet care (~$5,000): Veterinary bills, pet insurance, or boarding if needed

• Other dependent (~$10,000): Financial support for any other family member or person relying on you

Plan for short-term costs that often arise after a death.

• Rent (transitional period) (~$10,000): Ensures loved ones can cover temporary housing costs if needed

• Medical bills (~$5,000): Covers any leftover hospital or treatment expenses

• Funeral expenses (~$10,000): Funeral or memorial service, burial/cremation, and related costs

• Other loose ends (~$2,000): Legal, administrative, or miscellaneous fees

Consider the financial legacy you’d like to leave behind.

• Savings fund (~$25,000): An extra cash reserve for your family or a nest egg for future needs

• Charitable giving (~$10,000): Donations to causes or organizations you care about

• Cash gift (~$5,000): A designated sum for friends, grandchildren, or other personal beneficiaries

Total coverage = A + B + C + D

Calculate any existing coverage (from an employer group policy, typically 1–2 times your annual salary) = X

Total coverage needed = A + B + C + D – X

(Subtract existing coverage from total coverage to find your net gap)

Once you’ve estimated your coverage needs, move on to Step 3 to choose the policy type that best aligns to your circumstances.

Covers the remaining amount of your mortgage if you die, so your home is paid off.

• Ideal for: Cover a mortgage

• Coverage period: Tied to your remaining mortgage balance

• Cost: Lowest ($)

• Declining payout: Coverage usually decreases as you pay down the mortgage

Provides life insurance coverage for a set period (like 10 or 20 years) at a lower cost than other types.

• Ideal for: Cover a mortgage, Payoff major debts, Replace lost income, Ensure children’s education is funded, Handle funeral expenses, Securing business/partnership obligations

• Coverage period: Typically 10, 20, or 30 years

• Cost: Medium ($$)

• Option to convert: Change or upgrade your coverage (often without a medical exam) before your policy ends

Stays active your entire life, providing premiums are paid, and often has a built-in savings feature to build wealth.

• Ideal for: Cover a mortgage, Payoff major debts, Replace lost income, Ensure children’s education is funded, Handle funeral expenses, Securing business/partnership obligations, Financial security, Protect/assist aging parents, Estate planning, Leaving a legacy, Accumulate long-term savings

• Coverage period: Lifetime

• Cost: Highest ($$$)

• Cash value component: May build savings/investment (whole or universal life)

Still not sure?

If you want the most coverage for the lowest cost, choose term life.
If you want coverage that lasts for life and builds value, choose permanent life.
If you’re not sure, start with term life – you can upgrade later with no medical exam.

Now that you know which policy type fits your motivators, continue to Step 4 to gather the details insurers need for underwriting.

1. Request and gather your medical records (recent physical exam, lab results).

2. Compile any relevant family health history details

3. Note any lifestyle factors (smoking, high-risk hobbies)

4. Review your financial info (annual income, existing coverage)

5. Identify your beneficiaries (primary, secondary)

6. Fill in the details below to hand off to a broker or use online for quotes