How much life insurance do you need?
This is different from the premium estimator — it answers “how much coverage”, not “how much will it cost”, using the widely-used DIME method.
Gross need before offsets: $1,145,000
- Debt to pay off1%
- Income replacement70%
- Mortgage payoff22%
- Education fund7%
Non-mortgage debt (credit cards, loans)
10 yrs × $80,000/yr
Remaining mortgage balance
1 child(ren) × $80,000
Subtracted from the gross need
Illustrative estimate only — not a quote or professional recommendation. Read the full disclaimer.
Trust & methodology
Last reviewed: July 23, 2026
This tool provides a planning estimate for life insurance coverage using the DIME method — not a substitute for a licensed agent's needs analysis.
How to use this calculator
Enter income and years to replace
How much you earn annually, and how many years dependents would need that income replaced.
Add debts and mortgage
Non-mortgage debt (cards, loans) and your remaining mortgage balance.
Add education costs
Number of children and an estimated education cost per child.
Subtract what you already have
Existing life insurance and liquid savings reduce the net need.
Inputs used
- Annual income and years of income to replace
- Non-mortgage debt and remaining mortgage balance
- Number of children and education cost per child
- Existing life insurance coverage and liquid savings
Formula basis
- Gross need = non-mortgage debt + (annual income × years to replace) + mortgage balance + (children × education cost per child)
- Net need = gross need − existing life insurance − liquid savings
Assumptions and limits
- Does not account for inflation, investment growth on the payout, or a family's changing needs over time
- A widely-used starting-point method (DIME), not a substitute for a full financial needs analysis
- Treats each input as a fixed, known amount rather than a range or probability
Frequently asked questions
DIME stands for Debt, Income, Mortgage, Education — four categories of financial obligation a life insurance payout is typically meant to cover. Adding them up and subtracting existing coverage and savings gives a reasonable starting estimate for how much coverage to buy.
A common range is 5–15 years, depending on how long dependents will rely on that income — for example, until the youngest child finishes school, or until a spouse's own retirement savings are on track.
No. This is a starting point for budgeting the conversation, not a substitute for advice tailored to your full financial picture, tax situation, and existing coverage.