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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.

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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.

Reality check: "10× your salary" is a fine starting point, but it ignores your mortgage, your kids' ages and what you've already saved. Two families earning the same income can need wildly different coverage.

Life insurance FAQs

How much life insurance do I actually need?

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.

Should I buy term or whole life?

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.

How long should the term be?

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.

Will my employer's coverage be enough?

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.

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