health_and_safety INSURANCE TOOLS

Life Insurance Estimator

Protect your loved ones. Uses the D.I.M.E method.

D.I.M.E Inputs

e.g. 10 years of salary
How It Works: The D.I.M.E. method provides a comprehensive estimate of life insurance needs by accounting for all financial obligations your family would face.

D.I.M.E. Components:
  • Debt: Credit cards, car loans, personal loans that need to be paid off.
  • Income: Years of salary replacement (typically 5-10 years) to maintain family's lifestyle.
  • Mortgage: Remaining balance to pay off the home.
  • Education: College costs for children (typically $100k-$200k per child).


Formula: Total Need = D + I + M + E. Recommended Coverage = Total Need - Existing Savings/Insurance.

Purpose: Ensure your family can maintain their standard of living and meet financial goals if you're no longer there to provide.
Recommended Coverage
$815,000
Total Needs
$865,000

Life Insurance Basics

Life insurance isn't for you—it's for those you leave behind. It ensures your family can stay in their home, pay off debts, and maintain their quality of life.

Term vs. Whole Life

Term Life
  • Coverage for a set period (10-30 years).
  • Much cheaper premiums.
  • Pure protection, no cash value.
Whole Life
  • Coverage for your entire life.
  • More expensive premiums.
  • Builds cash value over time.

The D.I.M.E. Method

Many experts recommend the D.I.M.E. method (Debt, Income, Mortgage, Education) as a comprehensive way to calculate your coverage needs, rather than just guessing "10x income".