Estimate how much life insurance coverage you need, using the widely used DIME method: Debt, Income replacement, Mortgage, and Education.
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Credit cards, personal loans, etc., excluding mortgage.
Estimated future college costs for children.
Recommended Coverage
—
Income Replacement Portion—
Debts, Mortgage and Education—
Less: Existing Savings and Coverage—
Formula
Coverage Needed = (Annual Income × Years to Replace) + Debts + Mortgage Balance + Education Costs − Existing Savings and Coverage.
Example
A $70,000 income replaced for 10 years is $700,000, plus $15,000 debts, $200,000 mortgage and $40,000 education, minus $20,000 already saved, recommends about $935,000 in coverage.
Not tax or financial advice. This calculator provides general estimates based on published 2026 figures. Always confirm important figures with the IRS, SSA, your state tax agency, a licensed lender, or a qualified professional.
Frequently Asked Questions
What is the DIME method?
A common approach to sizing life insurance coverage by adding Debt, Income replacement, Mortgage balance, and Education costs, then subtracting existing savings and coverage.
Does this replace advice from an insurance agent?
No, this gives a starting estimate. A licensed agent or financial planner can account for your full financial picture and specific policy options.