Life Insurance Needs Calculator
DIME method: Debts + Income × 10 + Mortgage + Education costs.
What is a life insurance calculator?
A life insurance calculator estimates how much life insurance cover your family needs using the DIME method, which adds up debts, income, mortgage and education costs.
How to use the life insurance calculator
Enter your debts, annual income, mortgage balance and expected education costs, then click Calculate Coverage. The calculator shows the recommended cover amount.
The DIME formula
Coverage = Debts + Income × 10 + Mortgage + Education. DIME stands for Debts, Income, Mortgage and Education.
Example
Debts $10,000 + income $50,000 × 10 + mortgage $100,000 + education $50,000 = $660,000.00 of recommended coverage.
Frequently Asked Questions
How much life insurance do I need?
Use the DIME method: add your debts, 10 times your annual income, your mortgage balance and expected education costs. Try it on the calculator above.
What does DIME stand for?
DIME stands for Debts, Income, Mortgage and Education — the four things your life insurance should cover for your family.
Why multiply income by 10?
Multiplying annual income by 10 replaces about 10 years of income, giving your family time to adjust if you are no longer there.
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