How much life insurance do you need?
This calculator uses the DIME method — Debt, Income, Mortgage, Education — the same framework advisors use to size a policy.
This is an educational estimate using the DIME method, not a recommendation or a quote. Your real need depends on your family, goals, and finances. Talk to a licensed insurance professional before buying a policy.
How the life insurance calculator works
The goal of life insurance is simple: if you passed away, the payout should cover the money your family would lose and the big costs they would still face. The DIME method breaks that into four parts and then subtracts what your family already has.
D — Debt
Add up debts your family would inherit or still owe: car loans, credit cards, student loans and similar. A payout large enough to clear these keeps your family from carrying your debt on a smaller income.
I — Income
Replace the income your household depends on. Multiply your annual income by the number of years your family would need support — often until the youngest child is independent or a spouse reaches retirement. This is usually the largest part of the total. See how many years to choose.
M — Mortgage
Include enough to pay off the home. Clearing the mortgage removes the single biggest monthly bill, letting your family stay in their home without the pressure of payments.
E — Education
Set aside a fund for your children’s future education. College and school costs are one of the largest expenses parents plan for, and life insurance can protect that goal.
Guides & resources
New to life insurance? These plain-English guides walk you through it:
- How much life insurance do I need? — the DIME method and rules of thumb.
- Term vs whole life insurance — the difference that decides your premium.
- Types of life insurance — term, whole, universal and more.
- Do I even need life insurance? — who does and who doesn’t.
- What affects your rates — why premiums vary so much.
- See all guides →
Frequently asked questions
How accurate is this life insurance calculator?
It gives a solid, structured estimate using the DIME method that many advisors rely on. It can’t know your exact future costs, so treat the result as a well-reasoned starting point rather than a precise figure. A licensed agent can refine it for your situation.
Is the “10x income” rule good enough?
Multiplying your income by 10 is a quick shortcut, but it ignores your specific debts, mortgage and education goals. The DIME method used here is more tailored because it adds up your actual obligations. Compare both to sanity-check your number.
Does coverage through work count?
Yes — enter it under “life insurance you already have.” Employer coverage reduces what you need to buy, but it’s often only 1–2x salary and usually ends if you leave the job, so many people add their own policy. See how much you need.
Term or whole life — which is cheaper?
Term life is far cheaper for the same coverage because it lasts a set number of years and has no cash value. Whole life costs more but lasts your whole life and builds cash value. Read our full comparison.
Is my information saved?
No. Everything runs in your browser and nothing you enter is sent anywhere or stored. Reload the page and it resets.