April 4, 2022

I also cover this in a YouTube video. Click here to watch!

Let me ask you a question

If something happened to you last night and you passed away unexpectedly – would your family be fully protected?

Let me ask you another question 

If you were at home cleaning out the gutters or washing the windows, and you fell off the ladder and hurt yourself so badly that you could never go back to work – what would be the value of your monthly paycheque for the rest of your life?

Let me ask you one more question

If you were not feeling well, you went to see your family doctor, they ran some tests and then told you that you had stage two or stage three cancer – what is your game plan? And, are you protected?

All of these questions lead to something called a “Needs Analysis.” In this short article, I’ll be giving you all the necessary facts you’ll need to consider when making an informed decision for you and your family about why you need one. 

A Needs Analysis is something my team runs so that if life happens and you get hit by a curveball, you can rest assured that you and your family are protected.                                                                      

In the case of death, the Needs Analysis calculation needs to take into consideration all of the family debt, your children’s future post-secondary education costs, the financial contribution that you make to the monthly budget, and of course, your funeral costs. Depending upon how old you are and the ages of your children, it could mean that you need to have $2M to $4M of life insurance coverage in order to make sure that if you passed away unexpectedly, your family can continue to live their current lifestyle. Now I know your spouse will wear black for a number of weeks, but they also need to get on with their lives, so you want to make sure there are no financial worries.

In the case of injury, where you cannot return to work, the Needs Analysis calculation needs to take into consideration the financial contribution that you make to the monthly budget. So, if your monthly budget is $10K or $12K and your “net pay” makes up 50% of this number, then you need to make sure you have at least $5K or $6K per month in Disability Insurance coverage. If you don’t, then pressure will start to rise and you will need to find another job that you can do in order to survive.

In the case of critical illness – like cancer, heart attack, or stroke – the Needs Analysis calculation needs to take into consideration that we are starting to survive these critical illnesses, but we are off work for a period of time while we recover. So, if you are making $100K or $200K per year after taxes, then for the average male you will be off work for 18 months and will need at least $200K to $300K in Critical Illness Insurance coverage. For the average female, they are typically off work for 18-24 months, and so they will need at least $300K to $400K in Critical Illness Insurance coverage.

A Needs Analysis calculation takes a number of factors into consideration. As you can see, depending on what happens in your life, you need to make sure that you are working with somebody who actually knows how to calculate a Needs Analysis… otherwise, you might end up with a gap in coverage and have to tap into reserve funds in order to survive.

Covid-19 has taught us a lot when it comes to the recognition of front-line workers and our own mortality; make sure you’re protected, and that you get a proper Needs Analysis done for you and your family.

If you’d like to learn more about getting a Needs Analysis for you and your family, contact me at the coordinates below to apply to become my client. Thanks for reading and always remember: when we design financial plans for our clients, we make sure that your money outlives you in retirement.

For the best life insurance advice and information, subscribe to my YouTube Channel and hit the notifications bell to be notified when we post new videos.  The channel allows me to share my passion for personal financial planning and I produce content that I would want to watch – and because of that, I promise to give you 110% effort in every video that I make.

By John Moakler, BMath, CFP, CLU

President and Senior Executive Financial Planner

Moakler Wealth Management


1 416 840 8544