Life Insurance Calculator
Estimate how much life insurance you need using the DIME method — Debt, Income, Mortgage, and Education — less the savings and coverage you already have.
Your details
- Income replacement need
- $800,000.00
- Debts + education
- $370,000.00
Coverage need by component
- Income replacement
- $800,000.0068%
- Mortgage + debts + education
- $370,000.0032%
Formula
Coverage = (annual income × years to replace) + mortgage balance + other debts + future education costs − current savings and insurance. The DIME method is a widely used rule of thumb for a starting coverage estimate.
Frequently asked questions
What is the DIME method?⌄
DIME stands for Debt, Income, Mortgage, and Education — the four needs a policy should cover. You add them up and subtract assets already in place to get a coverage target.
Is this an exact figure?⌄
No — it is a starting estimate. Your real need depends on your family's expenses, other income, inflation, and goals. A fee-only financial planner can refine it.
Sources & methodology
DIME method starting estimate (Debt + Income + Mortgage + Education − existing assets). A rule of thumb, not personalized advice — consult a licensed advisor.
- •U.S. Dept. of Labor — life insurance planning — U.S. Department of Labor
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