Life Insurance Coverage Calculator
Estimate how much life insurance you need using the DIME method — Debt, Income, Mortgage, Education.
| Debt | $15,000 | |
| Income Replacement | $1,950,000 | 30 yrs × $65,000 |
| Mortgage | $250,000 | |
| Education | $200,000 | 2 children |
| Subtotal | $2,415,000 | |
| Existing Coverage | −$0 | |
| You Need | $2,415,000 |
This estimate uses the DIME method. A licensed insurance agent can tailor this to your health, assets, and specific policy options.
What Is the DIME Method?
DIME is a widely used formula that estimates your life insurance needs based on four factors:
- Debt — Outstanding balances on credit cards, auto loans, student loans, and personal loans. Your family should not inherit your debt burden.
- Income — Your annual income multiplied by the years remaining until retirement. This replaces the earnings your family depends on.
- Mortgage — The remaining balance on your home loan, so your family can stay in their home.
- Education — Estimated college or trade school costs for each child you want to provide for.
How Accurate Is This Calculator?
The DIME method provides a strong starting point, but it does not account for everything. Factors like your spouse's income, existing savings, Social Security survivor benefits, inflation, and specific health considerations can raise or lower your actual need. A licensed agent can fine-tune the number based on your complete financial picture.
Common Rules of Thumb
You may have heard advice like "buy 10 times your income." That shortcut works for some people, but it ignores mortgage size, number of dependents, and existing debt. The DIME method builds a personalized estimate from your real numbers — which is why financial planners prefer it.
Learn More About Life Insurance
Browse our life insurance guides by state and situation: