How much life insurance do I need?
Use the DIME method to calculate your exact coverage gap — based on your debt, income, mortgage, and children's education.
Life insurance needs (DIME method)
Enter your financial details to calculate your coverage gap using the Debt, Income, Mortgage, Education formula.
This is an estimate for informational purposes only based on national and state averages. Actual rates vary by insurer and individual circumstances. For an accurate quote, contact a licensed insurance agent.
How the DIME method works
The DIME method gives you a concrete coverage number by adding up four specific financial obligations your family would face if you died: outstanding Debt, Income replacement, Mortgage balance, and future Education costs. It produces a more accurate result than the simpler approaches because it accounts for your actual financial profile.
D — Debt
Add up all non-mortgage debt: credit cards, car loans, personal loans, student loans, medical debt. This is the amount your family would need to clear these obligations without your income. Do not include your mortgage here — that has its own line in the formula.
I — Income replacement
Multiply your annual income by the number of years your dependents would need financial support. Most financial planners suggest 10–20 years. A 35-year-old with a 5-year-old child might choose 20 years to support the child through college. A 50-year-old whose children are grown might choose 10 years to bridge a spouse to retirement.
M — Mortgage
Include your remaining mortgage balance. This ensures your family can pay off the home and not face foreclosure or forced sale during an already difficult time. Use your current payoff balance, not the original loan amount.
E — Education
Estimate future college costs per child. A common planning figure is $100,000 per child for a 4-year public university including room and board. Private university runs $200,000–$300,000. Adjust based on your expectations and how many years remain before each child starts college.
Add D + I + M + E, then subtract any life insurance you already have (employer group life, existing policies). The result is your coverage gap — the amount of new insurance you need to buy.