Life Insurance Calculator
How Much Life Insurance Do You Need?
Uses the DIME method (Debt, Income, Mortgage, Education) plus final expenses, then subtracts what you already have. Takes 60 seconds.
Your numbers
Recommended coverage
$1,550,000
How to use this calculator
Enter your yearly income and how many years your family would need it replaced. For many parents, that is until the youngest child is on their own. Then add your mortgage, your other debts, and what you want set aside for each child's schooling.
Last, enter the life insurance you already have and the savings your family could use. The calculator subtracts those, and it adds a set amount for final expenses.
What the result means
The big number is a starting point for how much coverage to buy. It is the money your family would need to pay off the house, clear the debts, fund school, and keep the lights on. If the result is zero or less, your savings and current coverage may already cover the need.
What it does not cover
- Which type of policy fits you, like term or permanent coverage
- What the coverage would cost, which depends on your age and health
- Rising prices over the years you are replacing income
- Business needs, like a partner buyout or a key person
- The value of a stay-at-home parent's work
Common questions
What is the DIME method?
DIME stands for Debt, Income, Mortgage, and Education. You add those four needs together, then subtract the coverage and savings you already have. What is left is the coverage gap.
Should I count the life insurance I have through work?
You can, but work coverage usually ends when you leave the job. Many people count only part of it, or none, so their family is not left short after a job change.
Does a stay-at-home parent need life insurance?
Often, yes. Childcare, meals, driving, and running the house cost real money to replace. Coverage gives the working parent room to adjust.
How much will the coverage cost?
Price depends on your age, health, the amount, and the type of policy. Each insurance company prices people differently, so we compare several to find a good fit for you.
Educational tool only. Not financial, tax, or legal advice. Estimates use standard assumptions and may not reflect your specific situation. Talk to a licensed professional before acting on results.