How Much Life Insurance Do I Need in BC?
A practical guide to calculating the right life insurance coverage amount for British Columbia families, with a simple formula and real examples.
By GetInsuredBC ·
Most British Columbians need roughly 10 to 15 times their annual income in life insurance coverage — but the right number depends on your debts, dependents, and goals. Here’s how to figure out yours.
The quick answer
If you earn $70,000 a year, a starting estimate is $700,000 to $1,050,000 in coverage. This replaces your income for long enough that your family can adjust, pay off major debts, and stay in their home.
The DIME method
A more accurate way to size your coverage is the DIME framework. Add up:
- Debt — credit cards, car loans, and other balances (excluding mortgage)
- Income — your annual income times the number of years your family would need support
- Mortgage — the remaining balance on your home
- Education — expected future costs for your children
The total is a solid coverage target tailored to your real obligations.
A BC example
Consider a Surrey couple with two kids, a $600,000 mortgage, $20,000 in other debt, and a $75,000 income that the family would need for 10 years, plus $100,000 for education:
- Debt: $20,000
- Income: $750,000
- Mortgage: $600,000
- Education: $100,000
That’s a $1.47 million coverage target — well above the simple income-multiple rule, which is why a tailored assessment matters.
Why buying earlier costs less
Premiums rise with age and changes in health. A healthy 32-year-old typically pays a fraction of what the same person would pay at 52 for identical term coverage. Locking in a term policy now holds your rate for the full term.
Get your number
Rather than guessing, our coverage assessment walks through your specific situation in a couple of minutes. Or reach out to a licensed BC broker directly.