How much life insurance do I need?
Add up your Debt, Income, Mortgage and Education costs, subtract what you already have, and get a ballpark number in under a minute.
D.I.M.E. total minus what you already have
Important: This calculator is for general education and information only. It is not financial, insurance, tax or legal advice, and it is not an offer, solicitation or recommendation to buy any insurance product.
D.I.M.E. is a simple rule of thumb. Results are estimates based only on the numbers you enter and do not account for inflation, investment returns, taxes, fees, Social Security survivor benefits, a spouse's income or other personal factors. Your actual needs may be higher or lower. Life insurance coverage is subject to underwriting, eligibility and the terms of the policy.
Please talk with a licensed professional before making decisions. Inputs are processed in your browser and are not saved or sent to NeoPenn Life Strategies LLC.
How is this calculated?
The D.I.M.E. method adds up four things your family might need covered if you passed away:
D Debt = debts to pay off + final expenses
I Income = annual income × years to replace
M Mortgage = remaining mortgage balance
E Education = number of children × cost per child
D.I.M.E. total = D + I + M + E
Additional coverage needed = D.I.M.E. total − personal life insurance
− coverage through work − savings
If what you already have is more than the D.I.M.E. total, the result shows as $0. The "times your income" figure is the D.I.M.E. total divided by your annual income. Numbers are not adjusted for inflation or investment growth.
Avoid double counting. D.I.M.E. pays off the mortgage separately, so your family would no longer have mortgage payments. If your income figure is meant to cover those payments too, you may be counting the mortgage twice. You can lower the income or the years to account for this.
Coverage through work usually depends on your job and may end or shrink if you leave, retire or change employers. Many people look at their number with and without it.
Know your number. Then protect it.
A NeoPenn advisor can walk through your D.I.M.E. number with you, look at the coverage you already have, and compare term and permanent options that fit your family and budget.