Life Insurance Needs Calculator (DIME)

How much life insurance do you need? DIME = Debt + Income (× years) + Mortgage + Education.

Inputs

Per child × number of children.

Result

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How to use this calculator

  • Add up non-mortgage debt.
  • Pick how many years of income to replace (typically until kids reach independence — 10-20 years).
  • Add mortgage balance and education fund.

About this calculator

The DIME formula is a quick framework for life-insurance coverage: enough to cover Debt, replace Income for the years your dependents need it, pay off the Mortgage, and fund Education. A 30-year-old breadwinner with $20k debt, $80k income (10-year horizon), $300k mortgage, and $100k education fund needs ~$1.2M coverage.

Frequently asked

Term or whole life?+
For coverage needs only, term is much cheaper. Whole life mixes coverage + savings; for most people, "buy term and invest the difference" wins. See term-vs-whole-life.
How long should the term be?+
Match it to when the income replacement is needed — typically 20-30 years until kids are independent or mortgage is paid off.
Is 10× income a good rule of thumb?+
Reasonable starting point. DIME is more precise; gives ~10-15× income for typical scenarios.
What about Social Security survivor benefits?+
Reduces the income-replacement need somewhat (especially with young kids). Subtract a few years of replacement to be conservative.
Should both spouses have life insurance?+
Yes — both contribute economically (income or unpaid labor like childcare/household). Compute DIME for each.

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