Life Insurance Calculator — How Much Coverage Do You Need?
Rules of thumb like "10× income" ignore your actual obligations. The DIME method adds up what your family would truly need — Debts, Income replacement, Mortgage, and Education — and subtracts what you already have. Two minutes to a defensible coverage number.
Car loans, cards, student loans, medical — plus final expenses (~$10k).
Until youngest child is independent, or spouse reaches retirement.
Rough guide: ~$100k per child for in-state public college.
- Total DIME need
- $1,115,000.00
- Rough term premium (healthy 30s, 20-yr)
- $53.25
How this calculator works
- DIME = Debts + (Income × years) + Mortgage + Education, minus existing coverage and savings. It's the framework fee-only planners use because it maps to actual obligations rather than a multiplier.
- The premium estimate is a rough anchor for a healthy applicant in their 30s buying 20-year level term — age, health class, and term length move it substantially.
Frequently asked questions
Term or whole life?
For income protection, term is the near-universal recommendation: 10–20× cheaper for the same coverage during the years dependents actually rely on you. Whole life is primarily an estate/tax tool at high net worth.
Do stay-at-home parents need coverage?
Yes — replacing childcare, transport, and household management costs $30–60k+/year. A $250–500k term policy on a non-earning parent is common and cheap.
Is employer life insurance enough?
Usually not: typical group coverage is 1–2× salary (versus the ~10× most families need) and it vanishes when you change jobs. Treat it as a supplement, not the plan.
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Disclaimer: Results are estimates for educational purposes only and are not tax, legal, or financial advice. Tax rules are simplified (credits, phase-outs, and local taxes may not be modeled). Verify important decisions with the IRS, your state tax authority, or a licensed professional.