It’s the most common question we hear — and the honest answer is that a good policy is sized to your life, not pulled from a generic rule of thumb. That said, there is a simple, reliable method you can use in about five minutes.
The DIME method
DIME stands for Debt, Income, Mortgage, and Education — the four things a policy typically needs to cover so your family isn’t left carrying them.
- Debt: total your non-mortgage debts plus final expenses.
- Income: multiply your annual income by the years your family would need it replaced (often 10–15).
- Mortgage: your remaining home loan balance.
- Education: estimated future costs for your children.
Add those together, then subtract any coverage you already have. Our Life Insurance Needs Calculator does exactly this in under a minute.
The mistake most families make
They rely only on group coverage from work, which is usually capped at one or two times salary and disappears when you change jobs. For most families that leaves a significant gap between what they have and what they’d actually need.
What to do next
Run your number, then talk it through with a licensed advisor who can match you to the right carrier and coverage type. Request a consultation to get started.