How much life insurance do you need?
Life insurance is about replacing what your income provides for the people who depend on you. The DIME method is a simple, widely-used way to estimate it: add your Debts, Income to replace, Mortgage and Education costs, then subtract what you've already saved.
Term vs whole life
- Term life — affordable coverage for a set period (e.g., 20–30 years). Right for most families.
- Whole life — permanent and far more expensive; usually only for specific estate needs.
Frequently asked questions
How much life insurance do I need?
A common method is DIME: add up your Debts, Income replacement (annual income × years), Mortgage and Education costs, then subtract savings and existing coverage. Many people land around 10× their annual income.
What is the DIME method?
DIME stands for Debt, Income, Mortgage, Education — the four big things life insurance should cover for your family if you're gone.
Term or whole life?
Term life is far cheaper and covers you for a set period (e.g., 20 years) — enough for most families. Whole life costs much more and is usually only worth it for specific estate-planning needs.
Is this an exact quote?
No — it's an estimate of how much coverage to consider. Actual premiums depend on your age, health and insurer.
Educational estimate only — not insurance or financial advice. Speak with a licensed agent for a quote.