Life Insurance Calculator
Estimate how much life insurance you need based on age, health, income, debts, and dependents. See recommended coverage and monthly premium instantly.
How It Works
Estimates how much life insurance coverage your family needs using the DIME method (Debt, Income, Mortgage, Education) minus your existing assets.
Formula
Coverage Needed = (Debt + Income to Replace + Mortgage + Education) - Existing Assets
Income to Replace is usually calculated as your annual salary multiplied by the number of years your dependents will rely on it (e.g., until children graduate college).
Worked Example
Calculating Coverage for a Primary Earner
- Debts (Credit cards, loans): $20,000
- Income ($80,000/yr for 10 years): $800,000
- Mortgage Balance: $300,000
- Children's Education (2 kids): $100,000
- Total Needs: $1,220,000
- Minus Assets (Savings, 401k): -$120,000
- Recommended Coverage: $1,100,000
Common Mistakes
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Relying solely on employer insurance
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Employer life insurance is usually 1-2x your salary. The DIME method often recommends 10-15x your salary. Plus, you lose employer coverage if you change jobs.
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Forgetting the stay-at-home parent
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Stay-at-home parents need insurance too. If they pass away, the surviving spouse would need to pay for childcare, household management, etc.
Frequently Asked Questions
Related Guide & Instructions
2026-07-10
How Much Life Insurance Do I Need? The DIME Method Explained
Don't guess your coverage amount. Learn how to calculate your exact life insurance needs using the industry-standard DIME method to protect your family's future.
Read full guide →Related Calculators
DisclaimerThe results provided by this calculator are estimates and for informational purposes only. They do not constitute financial, legal, or professional advice. Please consult with a qualified professional for your specific needs.