What DIME adds up
Debt, income replacement, mortgage payoff and education costs together approximate what it would take for your family to stay financially stable without your income — then existing coverage and savings are subtracted, since you only need to insure the gap.
Frequently asked questions
How much life insurance do I need?
This uses the DIME method — Debt, Income replacement, Mortgage, Education — adding up what your dependents would need covered, then subtracting existing coverage and savings.
Why replace income for a set number of years rather than forever?
Most plans assume dependents eventually become self-sufficient (kids grow up) or a spouse's own income and savings take over — 10-20 years is a common range rather than replacing income indefinitely.
Should I include my mortgage separately from other debt?
Yes — it's usually the largest single debt, and covering it outright means your family keeps the home without that monthly payment.
Is this exact?
It's a solid planning estimate. A financial advisor or insurer can refine it further based on your full situation.
Last updated: June 2026