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.

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.

Life Insurance Needs Calculator (DIME)

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

Result

Recommended coverage

$1,220,000

≈ 15.3× annual income.

D — Debt$20,000
I — Income × 10$800,000
M — Mortgage$300,000
E — Education$100,000
Total$1,220,000

Above typical — confirm dependents truly need this much

DIME total coverage

Debt + Income×Years + Mortgage + Education.

$1,220,000

"10× income" rule of thumb

Common shorthand from financial-planner literature; less precise than DIME.

$800,000

"15× income" upper range

Used when dependents are very young or single-earner household.

$1,200,000

Income-replacement portion alone

Replaces 10 years of earnings — the largest input for working-age parents.

$800,000

Source: DIME framework: Life Happens / LIMRA consumer-education materials; income-multiple norms from the Insurance Information Institute.

Not financial advice — DIME excludes Social Security survivor benefits (which can offset 1-3 years of income for households with young children) and existing employer-group life insurance. Subtract those before purchasing additional private coverage.

Step-by-step

D = 20,000, I × Y = 80,000 × 10 = 800,000, M = 300,000, E = 100,000.
Total = 1,220,000.

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

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.