Life Insurance Needs Calculator
Stop guessing (or trusting a salesperson). Enter a few numbers and get a clear, honest estimate of how much coverage your family actually needs — using the proven DIME method.
Based on the DIME method, here's what your family would need.
How this calculator works
This tool uses the DIME method — the same framework fee-only financial planners use to size a policy. It's simple but surprisingly accurate because it covers the four things your income is quietly paying for:
D — Debt
Every non-mortgage debt your family would inherit: credit cards, car loans, personal & student loans, plus final expenses.
I — Income
Your annual income × the number of years your family would need it replaced (until kids are grown or a spouse retires).
M — Mortgage
Enough to pay off the house so your family keeps their home, mortgage-free, no matter what.
E — Education
College (or trade school) for each child, so their future doesn't depend on you being there.
We then subtract what you've already got — savings, investments and any existing coverage — because that money is already working for your family.
Life insurance FAQs
The honest answer: enough to clear your debts, replace your income for as long as your family depends on it, pay off the mortgage and fund your kids' education — minus what you've already saved. For most working parents that's somewhere between $500,000 and $1.5 million of term coverage. Use the calculator above for your specific number.
For ~90% of people, term life is the right call. It buys the most protection for the least money during the years your family needs it most. Whole life costs 5–15× more for the same death benefit; it only makes sense for specific estate-planning or lifelong-dependent situations. See our term vs. whole life breakdown.
Match the term to your obligations. If your youngest is 3 and you have a 27-year mortgage, a 30-year term keeps you covered through both. Common choices are 20 and 30 years.
Usually not. Group life through work is typically only 1–2× salary and disappears the day you leave the job. Treat it as a bonus, not your plan.