How much life insurance do I need?
Use the DIME method — Debt, Income, Mortgage, Education — plus final expenses to estimate your coverage need.
Your situation
Income to replace
Typical: 10 years (until youngest child is independent)
Debts to clear
Children's education
4-year university estimate: $40k-$80k
Final expenses & existing coverage
Funeral, legal, medical
About the DIME Method
The DIME method is a simple framework to calculate life insurance needs:
- Debt — Pay off credit cards, car loans, personal debts
- Income — Replace years of lost income for your family
- Mortgage — Pay off the family home
- Education — Fund children's education (university, college)
We also add final expenses (funeral, legal, medical) and subtract any existing coverage you have in place. The result is your estimated coverage gap.
This is an estimate only. A licensed advisor can run a comprehensive needs analysis that accounts for your specific situation, tax considerations, existing assets, and long-term goals.