Quanto seguro de vida preciso?
The DIME Method
Determining how much life insurance you need doesn't have to be complicated. The DIME method — which stands for Debt, Income, Mortgage, and Education — provides a straightforward framework to estimate your coverage needs. By adding up these four components, you get a ballpark figure that accounts for your family's major financial obligations.
Step 1: Debt
Start by listing all your non-mortgage debts: credit card balances, car loans, student loans, and personal loans. Your life insurance should cover these so your family isn't burdened with your debts. For example, if you have $10,000 in credit card debt, a $20,000 car loan, and $30,000 in student loans, your D (Debt) equals $60,000.
Step 2: Income
Multiply your annual gross income by the number of years your family would need financial support. A common rule is 10-15 years, especially if you have young children. For a $75,000 income with a 10-year replacement target, your I (Income) is $750,000. If your spouse works, you can adjust this figure downward based on their income.
Step 3: Mortgage & Education
Add your remaining mortgage balance — this is often the largest single obligation. Then add estimated future education costs for your children. College costs vary widely, but $100,000-$150,000 per child is a reasonable estimate for a four-year public university. Add any private school costs if applicable.
Step 4: Subtract Existing Coverage
If you already have life insurance through your employer or an individual policy, subtract it from your total. Group life through work is a great start but is rarely sufficient on its own — it typically covers 1-2x your salary. Remember that employer coverage may not be portable if you change jobs.