Life Insurance Needs Calculator
Calculate how much life insurance you need using the DIME method (Debt, Income, Mortgage, Education). Get a personalized coverage recommendation.
Recommended Coverage
$990,000
Est. Monthly Premium: $119/mo
Income Replacement
$750,000
Debt Coverage
$25,000
Mortgage Coverage
$200,000
Education
$100,000
Final Expenses (funeral, etc.)
$15,000
Total Need
$1,090,000
This calculator is for educational purposes only. Actual insurance premiums vary based on health, age, and insurer. Consult a licensed insurance agent for personalized advice.
Coverage Breakdown
Frequently Asked Questions
What is the DIME method for life insurance?
DIME stands for Debt, Income, Mortgage, and Education — the four main financial obligations to cover. Add your total debts (minus mortgage), multiply your annual income by replacement years, add your remaining mortgage balance, and add estimated education costs. This gives a ballpark total. Then subtract any existing coverage.
How many years of income replacement do I need?
A common guideline is 10-15 years of income replacement, depending on your youngest dependent's age. If you have young children, consider longer coverage (20+ years). If your children are near college age, 5-10 years may be sufficient. The goal is to support your family until dependents become financially independent.
Should I buy term or whole life insurance?
For most families, term life insurance is the most cost-effective choice. It provides coverage for a specific period (10-30 years) at a lower premium, allowing you to invest the savings. Whole life insurance builds cash value but costs 5-10x more. Use our Term vs Whole Life calculator to compare the two strategies side by side.
This calculator is for educational purposes only. Actual insurance premiums vary based on health, age, and insurer. Consult a licensed insurance agent for personalized advice.