UPDATED FOR 2026
How much life insurance do you actually need? DIME = Debt + Income replacement + Mortgage + Education. The most widely used life-insurance-needs methodology in the U.S. industry. More precise than the 10x-income shortcut.
Credit cards, auto loans, student loans, personal loans. Exclude mortgage (separate field below).
Skip this if you already have decreasing-term mortgage life insurance.
Funeral + final medical + probate.
Liquid savings + group/individual life that pays out on death.
Enter your info to see your DIME number →
Sources: DIME methodology is the U.S. life insurance industry standard for needs analysis (LIMRA, NAIFA, and CFP Board recommended). College cost ranges from College Board's Trends in College Pricing 2024-25. Funeral cost defaults from National Funeral Directors Association 2025 survey ($9,135 traditional burial / $6,970 cremation; $15K buffer covers final medical + probate).
Formula: Coverage Need = Debt + (Income × Years) + Mortgage + (Children × College Cost) + Final-Expense Buffer − (Existing Coverage + Savings).
Comparison anchors: The simple 10x-income rule (10 × annual income) is shown as a sanity check. If your DIME number and 10x are within 30% of each other, you're in normal range. If DIME is 50%+ higher than 10x, you have unusually heavy obligations (large mortgage, many kids, significant debt). If DIME is significantly LOWER than 10x, you may not need as much coverage as the rule of thumb suggests — common for high-income empty-nesters.
What this calculator can't see: spouse's earning capacity, expected inheritance, business succession value, your retirement savings glide path, social security survivor benefits. A licensed agent or CFP will refine the DIME number for these factors.
Each component covers a specific obligation. Skip any line that doesn't apply to your situation.
Credit cards, auto loans, student loans, personal loans, business debts you've personally guaranteed. Survivors should be able to pay these off cleanly so they're not stuck with monthly payments. Excludes mortgage (separate line) and any creditor-paid debt that auto-discharges on death.
Multiply your annual income by 10 (DIME standard) to give survivors ~10 years of replaced earnings. Use 12-15x for single-earner families with young kids; 5-7x for dual-earner couples. The goal: enough capital that survivors can replace your earnings via conservative withdrawals while they adjust.
Remaining mortgage balance. Lets surviving spouse + kids stay in the home without housing-cost stress. Skip this line if you have separate decreasing-term mortgage life insurance — otherwise you'll double-count. Some couples prefer to NOT pay off the mortgage and invest the death benefit instead (depends on interest rate).
Projected total cost for each dependent child's higher education. Defaults: $60K (community + state), $120K (4-year public in-state, College Board avg), $180K (out-of-state public), $280K (private 4-year). Adjust for your state's flagship costs and your education tier expectations.
Funeral averages $9,135 traditional / $6,970 cremation per the National Funeral Directors Association. Add buffer for final medical bills not covered by health insurance and probate fees. Most agents recommend a $15K-25K final-expense buffer.
Subtract group life from your employer (typically 1-2x salary, free), individual policies in force, and liquid savings that survivors could access immediately. Don't subtract retirement accounts unless your spouse is age 59½+ (early withdrawal penalty erodes the value).
Once you have your DIME number, our term life premium calculator shows the monthly cost for that exact face amount. Or talk to a licensed agent for binding carrier quotes.