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 five minutes to get remarkably close.
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 (cards, auto, personal loans) plus final expenses.
- Income: multiply your annual income by the number of 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. That number is a strong starting estimate — exactly what our Life Insurance Needs Calculator computes for you.
The Mistake Most Families Make
They rely only on group coverage from work. Employer policies are usually capped at one or two times your salary and disappear if 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. Because we’re independent, we compare many companies to find the best fit for your health and budget.