Why State Farm’s Life Insurance needs Calculator is FLAWED

Question, if you want to find how much insurance you need you want or need should you assume you are going to sell all your RRSPs and savings as well? Of course not!

Just for fun I used State Farm’s life insurance calculator to determine how much life insurance “I need”.Let say you were married mid 40’s married. Would you want to sell all your RRSPs pay taxes if you or your spouse died or would you want to keep it for your own retirement? In the real world 99% of the people would say I need/want to keep my RRSPs for my own retirement, plus I don’t want to pay alot of taxes as well!

Here is another question if your house burned down or you crashed your car would you want a replacement to the orginal or is a 12 year old car or a TRAILER good enough?

State Farm, Kanetix, TD Bank and many others have the same problem. with their life insurance “needs” calculator

The key question to consider is life insurance should cover all your debts, pay for Kids Education, fund other survivors spouses retirement. For a very fast idea go to https://www.rightinsurance.ca/tools-income-in.html Income Replacement Calculator. This just shows the gross income needed to be replaced. Call me for a more comprehensive calculator.