DIME adds up the specific obligations a family would face without the insured’s income and support, then subtracts what’s already covered — the gap is what’s left to insure.
How it works
Four figures are added together: non-mortgage Debt, a chosen number of years of Income replacement, the remaining Mortgage balance, and future Education costs for any children. Existing savings and life insurance already in place are then subtracted, since only the uncovered portion needs new coverage.
Why income replacement is a judgment call
The number of years to replace is the input with the most room for disagreement — long enough for a spouse to adjust and children to grow up is a common target, but the right number depends on other income in the household, ages of any children, and how quickly expenses could realistically be reduced.
How to use this calculator
- Enter non-mortgage debt, annual income, and how many years of it to replace.
- Enter the mortgage balance and expected per-child education cost.
- Enter any savings or existing coverage already in place.
Frequently asked questions
Is DIME the only way to estimate life insurance needs?
No — a simple income-multiple method (commonly 10x annual income) is also widely used. DIME is more detailed because it itemizes specific obligations rather than using one multiplier for everything.
Should I include my own funeral and final expenses?
Many DIME worksheets do — this version keeps to the four core categories; add an estimate to the debt figure if you want it reflected.
Does this account for inflation over the income-replacement years?
No — it’s a straight multiplication of today’s income by the number of years, without adjusting for rising costs over that period.
