What is the DIME method?

DIME stands for Debt, Income replacement, Mortgage, and Education — a classic framework for calculating life insurance needs. It breaks down your family's financial needs into four categories to estimate required coverage.

How much life insurance do I need?

A common rule of thumb is 10-15× annual income. The DIME method is more precise: Coverage = Debt + (Annual Income × Replacement Years) + Mortgage Balance + Education Costs - Existing Assets.

Term life vs whole life insurance?

Term life is cheaper and provides pure protection for a specific period — ideal for most families. Whole life has cash value but higher premiums. This calculator focuses on pure protection needs (term life approach).

Life Insurance Calculator - DIME Method Coverage

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DIME method — scientifically estimate your life insurance needs: Debt, Income, Mortgage & Education.

D = Debt

💳 Credit Cards/Personal Loans ($)

Credit card and personal loan balances

🚗 Auto Loan ($)

If applicable

💼 Other Debts ($)

Any other outstanding debts

⚰️ Funeral Costs ($)

Estimated funeral & final expenses

I = Income Replacement

💰 Annual Income ($)

Pre-tax annual income

📅 Replacement Years

Recommended: 10-15 years

M = Mortgage

🏠 Mortgage Balance ($)

Remaining mortgage principal

E = Education

🎓 Number of Children

📚 Education Cost per Child ($)

College and beyond

Existing Assets (Deduct)

💵 Savings & Investments ($)

Current savings and investment assets

📋 Existing Life Insurance ($)

Coverage from existing policies

🎯 Recommended Coverage
-
DIME method result

📊 Income Multiple

Coverage / Annual Income

Category	Amount
Debt (D)	-
Income Replacement (I)	-
Mortgage (M)	-
Education (E)	-
Less: Existing Assets	-
Recommended Coverage	-

📘 DIME Method Explained

The DIME method breaks down life insurance needs into four categories:

D (Debt): All debts to be paid off, including funeral costs
I (Income): Income replacement for your family, typically 10-15 years
M (Mortgage): Remaining mortgage balance
E (Education): College and future education costs for children

Formula: Recommended Coverage = D + I + M + E - Existing Assets

🛡️ Life Insurance Calculator

D = Debt

I = Income Replacement

M = Mortgage

E = Education

Existing Assets (Deduct)

📋 DIME Breakdown

📘 DIME Method Explained

🛡️ Life Insurance Calculator

D = Debt

I = Income Replacement

M = Mortgage

E = Education

Existing Assets (Deduct)

📋 DIME Breakdown

📘 DIME Method Explained

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