How much life insurance do you actually need?
The DIME method adds Debt + Income replacement + Mortgage + Education, then subtracts coverage you already have. It's the same math licensed agents run on the phone.
Your numbers
Credit cards, car loans, student loans
Typically 10 years for working-age parents
Employer + individual policies
Your coverage gap
$1,255,000
Recommended additional term life coverage
- Debt
- $25,000
- Income × 10 yrs
- $750,000
- Mortgage
- $280,000
- Education (2 kids)
- $200,000
- Total need
- $1,255,000
- Existing coverage
- -$0
Estimates only. Final premium depends on age, health, and carrier underwriting.
How the DIME method works
DIME is the back-of-the-envelope standard advisors use because it covers the four expenses a surviving family inherits: Debt (cleared at death so no one chases your spouse), Income replacement (so your family can keep their lifestyle for 10+ years), Mortgage (paid off so the house stays in the family), and Education (college without loans).
The number you see is a floor, not a ceiling. If you have a non-working spouse, special-needs dependents, or expect significant inflation, round up by 15–25%.