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
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Your Estimated Coverage Need
Estimated coverage need
Total life insurance recommended
$1,245,000
Coverage gap: $1,245,000
You need approximately $1,245,000in additional life insurance to fully cover your family's needs.
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About life insurance needs
A coverage-needs framework that factors in income, debts, children, and existing coverage.
At a glance
Best for
- Initial sizing of coverage need
- Understanding the components ('how much' is never one number)
- Comparing your total need against existing group/individual coverage
Watch out for
- Default costs (education, final expenses) are starting points — adjust for your reality
- Doesn't inflate coverage over time — actual needs grow with inflation
- Group coverage disappears when you leave your employer — don't double-count indefinitely
Learn more
This is educational, not financial advice. An advisor can apply it to your specific situation.
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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.