How Much Life Insurance Do I Need?
Answer nine questions and get a coverage number built with the DIME method (Debt, Income, Mortgage, Education) — the same framework fee-only financial planners use. No email, no quotes, no sales calls; the math runs entirely in your browser and nothing you enter is sent anywhere.
Not sure about a field? The defaults reflect typical U.S. figures — adjust the ones you know and you'll still get a useful estimate.
Your estimated coverage need
$805,000
Term policies are sold in round amounts — you'd shop for a $850,000 policy.
| Income replacement | $600,000 |
| Mortgage + other debts | $215,000 |
| Education costs | $0 |
| Final expenses | $10,000 |
| Minus savings & existing coverage | −$20,000 |
| Coverage gap | $805,000 |
Estimates use the DIME method (Debt, Income, Mortgage, Education). This is educational information, not financial advice — confirm your needs with a licensed agent or fee-only planner.
How this calculator works
Life insurance exists to replace your financial contribution to your household if you die. The DIME method estimates that contribution in four parts:
- Debt — balances your family would still owe: car loans, credit cards, student loans (private student loans generally survive death; federal ones are discharged).
- Income — your annual income multiplied by the number of years your family would need it. Count until your youngest child is independent or your spouse could reasonably retire.
- Mortgage — paying off the home outright is the single biggest stabilizer for a surviving family, which is why it is counted separately from other debt.
- Education — four years at an in-state public university currently runs roughly $90,000–$110,000 per child including room and board.
From that total we subtract liquid savings and any life insurance you already carry. What remains is your coverage gap — the amount a new policy should cover. Because insurers sell term policies in round increments, we also round your result up to the nearest $50,000.
Frequently asked questions
How much life insurance do I need?
A common rule of thumb is 10–12 times your annual income, but the DIME method is more accurate: add your Debts, the Income your family would need replaced (annual income × years), your Mortgage balance, and Education costs for your children, then subtract savings and any coverage you already have. The calculator on this page does that math for you.
What is the DIME method?
DIME stands for Debt, Income, Mortgage, and Education — the four big financial obligations life insurance should cover. You total those four categories, subtract existing savings and coverage, and the remainder is the coverage gap a new policy should fill.
Is the group life insurance from my job enough?
Usually not. Employer group coverage is typically 1–2 times your salary, while most families need closer to 10 times. Group coverage also usually ends when you leave the job, which is exactly when you may struggle to afford a new policy. Treat work coverage as a supplement, not a plan.
Should I buy term or whole life insurance?
For the large majority of families, level term life insurance is the right answer: it delivers the most coverage per premium dollar during the years your family actually depends on your income. Whole life costs 5–15 times more for the same death benefit and mainly makes sense for specific estate-planning situations.
How long should my term be?
Match the term to your longest obligation — typically until your youngest child is financially independent or your mortgage is paid off. For most buyers that means a 20- or 30-year term. Buying a longer term costs more per month but locks in your insurability while you are young and healthy.
Keep reading
Once you have your number, our guide to choosing a life insurance policy walks through term lengths, riders worth paying for, and how to compare quotes without getting upsold.
Disclaimer: This calculator provides general educational estimates, not personalized financial, insurance, or tax advice. Your actual needs depend on factors a simple model cannot capture — consult a licensed insurance agent or fee-only financial planner before purchasing a policy.
