Life Insurance Needs Calculator

Find out exactly how much life insurance coverage you need using the DIME method. Enter your income, debts, mortgage, and education costs to get a recommended coverage amount.

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Annual Income ($)

Years of Income to Replace

Total Debt ($) optional

Mortgage Balance ($) optional

Education Costs ($) optional

Existing Coverage ($) optional

Frequently Asked Questions

How much life insurance do I need?

A common rule is 10–12× your annual income. A more precise approach (DIME): add Debt, Income replacement (years until retirement × annual income), Mortgage balance, and Education costs for dependents.

What is the difference between term and whole life insurance?

Term life covers a set period (10, 20, 30 years) and pays only if you die during the term — much cheaper. Whole life covers your entire life and includes a cash value component — significantly more expensive. Most financial advisors recommend term for pure protection.

At what age does life insurance become expensive?

Premiums increase significantly with age, especially after 50. A healthy 30-year-old might pay $25–40/month for a $500k 20-year term policy; the same person at 50 might pay $150–200/month. Buying term coverage younger locks in lower rates.