Life Insurance Needs Calculator (DIME Method)

The DIME method is a widely used "back of the napkin" way to estimate how much life insurance coverage a family needs.

D — Other debts (not mortgage): loans, credit cards, final expenses I — Annual income to replace I — Number of years to replace it M — Remaining mortgage balance E — Number of children E — Education cost to set aside per child

How this works — the DIME method

Debt: everything except the mortgage
Income: annual income × years to replace it
Mortgage: pays off the home so the family isn't forced to move
Education: sets aside a fund per child

DIME is a well-known personal finance rule of thumb, not a regulated formula — it gives a reasonable starting estimate based on your own numbers, not a guaranteed "correct" amount. Existing savings, other insurance, and your family's specific needs should also factor into the final decision. Not financial or insurance advice.