The DIME method adds up what would actually have to be paid if you died tomorrow — Debt, Income replacement, Mortgage, Education — and subtracts what is already in place. It is a planning figure, not an underwriting decision, and it is a far better starting point than a multiple of salary.
This tool applies officially published figures to the numbers you enter. It is not an insurance quote, it is not an eligibility determination, and it does not predict what a carrier will charge you. Only HealthCare.gov, Medicare.gov, Social Security or the carrier can determine your eligibility and your actual price.
Life Insurance Coverage Needs: how it works
Why group life through work is rarely enough
Employer cover is typically one or two times salary and it usually ends the day the job does. It counts toward the total — include it above — but building a family plan on it assumes you will still be at that employer when it is needed.
A stay-at-home parent still needs cover
The income line looks like zero, but childcare, transport and household work would have to be paid for. Running the calculator with the replacement cost of that work in the income field usually produces a figure people find surprising.
Common questionsCommon questions
Does this tell me what a policy would cost?
No. It tells you how much cover to shop for. Premium depends on age, health, tobacco use and the underwriting decision, and we will not quote a figure we have not had underwritten. Tell us the number this produces and we will get you real quotes.
Term or whole life for this amount?
For most families the DIME figure is a term need — it shrinks as the mortgage is paid and the children grow up. Permanent cover answers a different question, usually estate planning or a lifelong dependant.