How much life insurance do you need? There's a formula.
The DIME method (Debt + Income + Mortgage + Education) is what fee-only financial planners use to size life insurance. Plug in your numbers below — we'll calculate your target coverage and estimate your monthly premium.
★ STEP 1 · COVERAGE NEED ★
The DIME formula
D · Debts$15,000
I · Income × 10 yrs$850,000
M · Mortgage$380,000
E · Education (2 kids)$100,000
YOUR COVERAGE NEED$1,345,000
★ STEP 2 · ESTIMATE PREMIUM ★
What you'll pay monthly
Term length
Smoker
Gender
ESTIMATED MONTHLY PREMIUM$275
ANNUAL PREMIUM$3,300
20-YEAR LIFETIME COST$66,000
COST PER $1k OF COVERAGE$0.55/mo
Estimates based on industry averages. Real quotes depend on health questionnaire + medical exam.
★ COVERAGE NEED vs CURRENT PLAN ★
Gap analysis
YOUR NEED$1,345,000DIME total
SELECTED COVERAGE$500,000What you're modeling
GAP−$845,000Increase coverage
★ WHO NEEDS LIFE INSURANCE? ★
The honest answer
✓ DEFINITELY YES
You have dependants (spouse, kids, aging parents)
You have a mortgage or large debts
You're a primary income earner
You're a stay-at-home parent (childcare cost replacement)