Life Insurance Coverage Calculator
Determining how much life insurance you need does not have to be a guessing game. While a common rule of thumb is "10x your income," that often fails to account for specific debts, education costs, or existing savings.
Use the calculator below to get a personalized estimate based on the "DIME" Method. Once you know your number, you can decide whether affordable Term Life or permanent Whole Life is the right vehicle for you.
Step 1: Your Obligations
Step 2: Your Assets
Estimated Need
$0
This amount covers all your debts, pays off the house, funds education, and replaces your income for the selected years.
How This Is Calculated (The DIME Method)
Insurance agents use the DIME method to provide a comprehensive view of your financial responsibilities.
D - Debt
Your family should not inherit your bills. This includes credit card balances, car loans, and personal loans. For high-debt situations, Term Life is often the most cost-effective solution to cover this risk.
I - Income
If you passed away, your paycheck disappears. The "Years of Support" multiplier ensures your family maintains their standard of living. This is vital for Mortgage Protection.
M - Mortgage
Housing is usually the largest expense. Including the full mortgage balance ensures your spouse and children will always have a paid-for home. A Decreasing Term policy can specifically target this need.
E - Education & Legacy
Whether it is college tuition or leaving a legacy, this ensures future opportunities. If you want this money to be available regardless of when you die, consider Whole Life.
⚠️ Don't Forget Inflation
This calculator provides a snapshot in today's dollars. Because costs rise over time (inflation), it is often wise to add a 5% to 10% buffer to your final calculation.