Income
Replace your paycheck so life goes on
Mortgage
Keep the family home
Debt & Final Expenses
Clear the slate, cover the farewell
Education & Emergency
Fund their dreams and the transition
What You Already Have
Subtract existing coverage and savings
Your Estimated Life Insurance Need
$995,000
The coverage that would let your family maintain their life and future if your income were no longer there.
How we got there
The DIME formula, step by step
DIME adds up what your family would need, then subtracts what you already have. Here's yours:
Debt & final expenses$50,000 + $20,000
Every debt you carry today, plus the cost of a farewell — so your family isn't handed your bills while they grieve.
Income replacement$75,000 × 10 years
Your annual income multiplied by the number of years your family would need it to keep life steady.
Mortgage payoff$200,000
Your remaining mortgage balance — the home stays with your family, no matter what.
Education & emergency fund$100,000 + $25,000
College goals for your children, plus a cushion for the transition period after loss.
D + I + M + E — existing insurance & savings = $995,000
Subtracted: $100,000 existing life insurance + $50,000 in savings
The DIME method, explained
DIME stands for Debt, Income, Mortgage, and Education. Add those together with final expenses and an emergency fund, then subtract the life insurance and savings your family already has. What's left is the gap a policy should fill — the difference between surviving and staying afloat.
Life insurance terms, in plain English
The words insurers use can feel like a foreign language. Here are the ones that matter most — no jargon, no sales pitch.
What's the difference between term and whole life insurance?
Term life insurance covers you for a set period (like 10, 20, or 30 years) and is usually the most affordable way to protect your family during the years they depend on your income. Whole life insurance lasts your entire lifetime and builds cash value, but costs significantly more. Most families start with term coverage sized to their DIME number.
What is a beneficiary?
A beneficiary is the person (or people) you choose to receive the policy payout. They receive the money directly, generally free of income tax, and can use it for the mortgage, daily living costs, education, or anything else your family needs.
What does 'premium' mean?
The premium is the amount you pay — monthly or annually — to keep your policy active. It's based on factors like your age, health, coverage amount, and the length of the term. Locking in a rate while you're young and healthy keeps it lower.
What happens during underwriting?
Underwriting is the insurer's review of your health and lifestyle before approving coverage. It often includes a few health questions and sometimes a simple medical exam. It's how the company sets your personal premium — and being honest up front protects your family's payout later.
Is the payout my family receives taxed?
Life insurance death benefits are generally income-tax-free for your beneficiaries in the United States. That's one reason coverage is such an efficient way to pass financial security to your family.
How much coverage does the average family need?
There's no single number — that's exactly why the DIME method exists. Your estimate reflects your debts, income, mortgage, and education goals rather than a one-size-fits-all rule of thumb like 'ten times your salary.'
Financial Independence Number (FIN)
What's your Financial Independence Number?
Answer all six questions to see the nest egg that could support your desired retirement lifestyle — a simple, educational estimate built on a 25× annual-income rule.
Turn this number into a plan.
Get a free, no-pressure review with a licensed educator who'll translate your estimate into real coverage options — tailored to your family and budget.