DDIME Life Insurance Needs Calculator

Estimate a life insurance coverage starting point from debt, income, mortgage and education needs.

Debts other than mortgage$Annual income to replace$

Years of income replacementMortgage balance$

Education funding goal$Existing life cover and available assets$

DIME life insurance needs estimate

$1,090,000

Debt: $30,000
Income replacement: $850,000
Mortgage: $280,000
Education: $80,000
Less existing cover and assets: $150,000

This is an educational needs estimate, not a quote or recommendation. It does not model inflation, taxes, survivor income, Social Security or policy suitability.

Using this tool

Turn four household obligations into a starting point

Use the DIME framework to total debts, income replacement, mortgage balance and education goals, then subtract existing life insurance and assets you intend to make available to survivors.

Reading the output

Coverage needs are broader than annual income

Worked example

Debt, income, mortgage and education

A household can add $30,000 of other debt, ten years of $85,000 income, a $280,000 mortgage and an $80,000 education goal, then subtract $150,000 of existing coverage and available assets.

Calculation

The DIME framework

DIME estimate = debts + annual income times replacement years + mortgage + education minus existing coverage and available assets, floored at zero.

Limitations

Subtract assets carefully

Use current balances rather than original debt amounts.
Do not count assets that survivors will still need for retirement or emergencies unless you intend them for this purpose.
Review inflation, survivor income, childcare, final expenses and policy duration separately.

Before relying on the result

Coverage estimates and policy decisions

Is the DIME result a life insurance recommendation?

No. It is a simple educational starting point and does not evaluate policy type, premium affordability, taxes or individual suitability.

Should employer life insurance be subtracted?

Only if you expect that coverage to be available when needed and understand that employment-based coverage can change or end.