Life Insurance Need Calculator

How the DIME method works

The DIME method is a simple, widely recommended way to estimate how much life insurance your family would need. It adds four categories:

• Debt — outstanding mortgages, loans and credit card balances that your family would inherit.
• Income — the income you provide multiplied by the number of years you want to replace it.
• Mortgage — often grouped with debt, this accounts for the largest liability most families carry.
• Education — projected costs for your children's college or schooling.

We also add an allowance for final expenses such as funeral costs and unpaid medical bills. The total is a starting point — not a substitute for a professional needs analysis.

How much coverage is right for you?

Term life insurance typically costs the least and covers you for a set period (for example, 20 or 30 years), which is why it's the most popular choice for income replacement. Permanent policies cost more but build cash value. Compare quotes from multiple insurers to find the best rate for your health profile and budget.

Frequently asked questions

Should I use the DIME total exactly?

Treat it as a benchmark. Your ideal amount also depends on your savings, spouse's income, employer coverage and long-term goals. Many advisors suggest 10–12x annual income as a rough rule of thumb.

What if I can't afford the full amount?

Buy what you can afford today — even a modest term policy is better than none — and increase coverage as your budget allows. Laddering multiple policies over time is a common strategy.