Life Insurance Needs Calculator
Two methods, side by side. DIME sums the specific dollar needs your family would face; the multiple method uses a simple 10–15× income rule. Both subtract existing coverage and liquid assets so the result is the coverage gap.
Income & Family
DIME Inputs
Existing Coverage & Assets (Subtract)
Recommended Coverage Range
Method Comparison
DIME Method
Income Multiple Method
DIME vs. multiple — both are shortcuts
The DIME method (Debt + Income replacement + Mortgage + Education) adds up the specific dollar needs your family would face if you died today. It's more detailed than a rule of thumb but relies on you estimating each line accurately. The income multiple method uses a simple heuristic: coverage = annual income × 10 to 15. It underweights specific debts and family circumstances but is quick and easy for a first pass.
Neither is a substitute for a real needs analysis with a fee-only planner. When the two methods disagree by a lot — usually because you have a big mortgage or young children — the DIME number is typically more defensible.
Coverage duration matters as much as amount
The amount you need drops over time as your mortgage amortizes, kids age out of education costs, and your assets grow. Most people don't need permanent (whole life) coverage for the full DIME amount — a level term policy sized for the peak-need years is usually cheaper and cleaner. See the term vs. whole life comparison for the tradeoff math.
Get real quotes before deciding
Premiums vary enormously by age, health class, gender, tobacco use, coverage amount, and term length. Any “typical premium” number online is illustrative at best. Compare 3–5 real quotes from an independent broker who represents multiple carriers — not a captive agent tied to one company — before committing.