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
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.
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