Life Insurance Needs Calculator

Use this calculator to estimate how much life insurance coverage you may need. This tool uses the DIME method (Debt, Income, Mortgage, Education) plus final expenses to give you a comprehensive estimate.

Life Insurance Needs Calculator

Income Replacement
$
Your gross annual salary before taxes
How many years would your family need support?
Debts & Mortgage
$
Current balance on your home loan
$
Credit cards, car loans, student loans, etc.
Education Costs
Children you want to fund education for
$
Average 4-year public: $100k, private: $200k+
Final Expenses & Existing Coverage
$
Funeral, medical bills, estate costs
$
Coverage you already have
$
Savings, investments available

Your Estimated Life Insurance Need

Recommended Coverage Amount

$0

Breakdown

Income Replacement$0
Mortgage Payoff$0
Other Debts$0
Education Fund$0
Final Expenses$0
Subtotal (Needs)$0
Less: Existing Coverage-$0
Less: Liquid Assets-$0
Recommended Coverage$0
Note: This is an estimate based on the DIME method. Your actual needs may vary. Consider consulting with a licensed insurance professional for personalized advice.
Learn About Life Insurance See Cost Estimates

How This Calculator Works

The DIME Method

The DIME formula is a widely-used approach to estimate life insurance needs:

  • D - Debt: All outstanding debts except your mortgage (credit cards, car loans, student loans, personal loans)
  • I - Income: Your annual income multiplied by the number of years your family would need support
  • M - Mortgage: Your remaining mortgage balance
  • E - Education: Estimated future education costs for your children

Additional Factors

This calculator also considers:

  • Final Expenses: Funeral costs, medical bills, and estate settlement (typically $15,000-$25,000)
  • Existing Coverage: Any life insurance you already have through work or personal policies
  • Liquid Assets: Savings, investments, and other assets that could support your family

Important Notes

  • This calculator provides an estimate only and should not replace professional financial advice
  • Your actual needs may vary based on your specific situation
  • Consider factors like inflation, your spouse’s income, and special needs
  • Review your coverage annually and after major life changes

Next Steps

Once you have your estimate:

  1. Compare quotes from multiple insurers
  2. Consider term vs. whole life - Learn the differences
  3. Review your state’s options - Find your state
  4. Understand policy types - Life Insurance Guide