Life Insurance Needs Calculator
DIME Method
Calculate life insurance needs using the DIME method (Debt, Income, Mortgage, Education)
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Formula
Coverage = (Annual Income × Years) + Mortgage + Other Debts + (Children × College Cost) + Final Expenses - Existing Coverage. Rounded up to nearest $50,000.
Frequently Asked Questions
How much life insurance do I need?
A common rule of thumb is 10-12x your annual income, but the DIME method is more accurate. It considers your Debts, Income replacement needs, Mortgage, and Education costs for children. The right amount depends on your family's specific financial situation.
What is the DIME method?
DIME stands for Debt, Income, Mortgage, and Education. Add up all debts, the income your family needs replaced for a set number of years, your remaining mortgage, and education costs for children. Subtract existing coverage and savings to find your gap.
Do single people need life insurance?
Not always, but it depends. If you have debts that others would inherit (co-signed loans), dependents (aging parents), or want to leave money for funeral costs or charity, some coverage may be worthwhile. It's also cheaper to buy when you're young and healthy.
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