Life Insurance Needs Calculator
DIME method: Debts + Income × 10 + Mortgage + Education costs.
What is the DIME method?
DIME stands for Debts, Income, Mortgage and Education. It adds up what your family would need if you were gone. Example: $10,000 debts + ($50,000 income × 10) + $100,000 mortgage + $50,000 education = $660,000 of coverage.
How to use it
Enter your debts, annual income, mortgage balance and education costs, then tap Calculate Coverage.
Formula
Coverage = Debts + (Annual income × 10) + Mortgage balance + Education costs. For this example, Coverage = 10,000 + 500,000 + 100,000 + 50,000 = $660,000.
Frequently Asked Questions
How much life insurance do I need with $50,000 income, $10,000 debts, a $100,000 mortgage and $50,000 education costs? $660,000 by the DIME method.
Why is income multiplied by 10? Ten years of income is a common rule of thumb to replace lost earnings.
Is DIME an exact answer? No, it is an estimate. Your real needs depend on your family, savings and other cover.