Free calculator
Life Insurance Calculator
Estimate how large a death benefit your family would need using the DIME method — Debt, Income, Mortgage and Education — then subtract what you already have. Everything is calculated in your browser.
How the life insurance calculator works
This calculator uses the DIME method, the framework most fee-only financial planners use to size a death benefit. It adds four numbers and subtracts the resources your family could already draw on:
| Component | What it covers |
|---|---|
| D – Debt | Credit cards, auto loans, student loans and personal loans that would otherwise fall to your survivors. |
| I – Income | A percentage of your salary, replaced for the number of years your household would need support. |
| M – Mortgage | The remaining balance on your home so your family can stay without a monthly payment. |
| E – Education | A college fund for each child, based on the amount you want to guarantee. |
The formula is:
Coverage need = (Income × Replace % × Years) + Mortgage + Other debt + Education + Final expenses − Savings − Existing coverageHow to optimize what you pay
- Match the term to the need. If your mortgage has 18 years left and your youngest is 3, a 20-year term aligns coverage with the years it matters.
- Ladder policies. Buy one policy for the mortgage-and-kids years and a smaller one for income replacement, so coverage steps down as the need shrinks.
- Buy young and healthy. Rates are locked at issue; waiting a few years or gaining a health condition can raise premiums 20–50%.
- Skip riders you don't need. Return-of-premium and most add-ons cost more than self-insuring the same risk.
- Re-shop, don't cancel first. Only replace an in-force policy once the new one is approved and issued.
Rules of thumb, and why the calculator is better
"10× income" or "12× income" are quick screens, but they ignore whether you rent or own, how old your children are, and what you have saved. Two people earning the same salary can have coverage needs that differ by $500,000. Use the calculator to get a number tied to your actual obligations.
Life insurance calculator FAQ
How much life insurance do I need?
A common rule of thumb is 10 to 15 times your annual income, but the DIME method used here is more precise because it accounts for your specific mortgage, debts, savings and college goals.
Should the percentage of income be 100%?
Usually not. Your household loses one person's expenses too, and Social Security survivor benefits may help. Many planners model 60–75% replacement. Adjust the field to see the effect.
Does employer coverage count?
Include it in "existing coverage," but remember it typically ends when you leave the job and is often only 1–2× salary. Most families need an individual policy on top.
Is my data saved?
No. The calculation runs entirely in your browser. Nothing you type is sent to a server or stored after you close the page.