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Life Insurance Needs Calculator

Use the DIME method to estimate how much life insurance coverage your family would need if they had to manage without your income. A quick, sensible starting point — not personalized advice.

The DIME method: Debt + Income + Mortgage + Education, minus what you already have set aside.

$
$
$
$
$
Estimated coverage: $0
Debt + mortgage
$0
Income replacement
$0
Education
$0
Less existing assets
$0

DIME is a quick starting estimate, not personalized advice. Your real need depends on your family, goals, employer coverage, and other benefits.

How the DIME method works

Life insurance exists to replace what your income provides for the people who depend on you. The DIME method adds up the four biggest obligations:

  • D — Debt: credit cards, car loans, and other balances (excluding the mortgage).
  • I — Income: your annual income multiplied by the number of years you'd want to replace it.
  • M — Mortgage: the remaining balance, so your family could stay in the home.
  • E — Education: estimated future costs for your children's schooling.

The calculator then subtracts your existing savings and any current coverage to estimate the gap.

A few things to keep in mind

  • DIME is a starting estimate, not a recommendation — your real need depends on your family, goals, and any workplace coverage.
  • Employer-provided life insurance often isn't enough on its own and may not follow you if you change jobs.
  • Coverage you buy young and healthy is typically cheaper.

Next, learn the difference between policy types in our term vs. whole life insurance guide, or browse all our Insurance guides.

Frequently asked questions

How much life insurance do I need?
A common starting point is the DIME method — add up your Debts, the Income you want to replace, your Mortgage, and future Education costs, then subtract savings and any coverage you already have. The result is a reasonable estimate, but your real need depends on your family and goals.
What is the DIME method?
DIME stands for Debt, Income, Mortgage, and Education — the four big things life insurance is meant to cover for the people who depend on you. It's a quick, sensible way to estimate coverage without complicated formulas.
Is term or whole life insurance better for this?
For most families covering a need that lasts a set number of years (until the mortgage is paid or the kids are grown), affordable term life insurance is the usual fit. See our term vs. whole life comparison to decide.

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