Life Insurance Coverage Needs Calculator
Calculate how much life insurance coverage you need based on income replacement, debts, dependents, and future expenses.
The DIME Method DIME stands for Debt, Income, Mortgage, and Education — the four pillars of life insurance needs analysis.
- Debt: All outstanding debts your family would inherit (credit cards, auto loans, personal loans)
- Income: Annual income × years of replacement needed (supports family during transition)
- Mortgage: Full outstanding balance so the family keeps the home
- Education: Estimated future education costs for all children
Coverage Gap Total DIME need − existing savings and investments − existing life insurance policies = your coverage gap.
Example Annual income: $80,000 | Replace for: 10 years | Mortgage: $250,000 | Other debts: $20,000 | Education: $100,000 Total need = $800,000 + $250,000 + $20,000 + $100,000 = $1,170,000 Minus existing savings $50,000 and existing policy $100,000 = Gap: $1,020,000
Rule of Thumb Many financial planners suggest 10–12× your annual income as a starting point. The DIME method is more precise because it accounts for your specific obligations.