Free calculator
How much life insurance do I need?
Estimate a coverage amount with the DIME method: debt, income, mortgage and education. Then talk with our sister company, Shadow Lake Brokerage, about options.
Estimates only, not a quote. This tool gives a rough starting point based on the numbers you enter. It is not an offer of insurance, a premium quote or advice for your situation. Actual coverage, limits and pricing depend on the insurance company, underwriting and the options you choose.
DIME life insurance estimate
| Debt + final expenses | $30,000 |
|---|---|
| Income replacement | $700,000 |
| Mortgage payoff | $250,000 |
| Education | $200,000 |
| Less existing coverage | −$0 |
| Estimated coverage need | $1,180,000 |
How the DIME method works
D – Debt and final expenses. Car loans, credit cards, personal and student loans, plus funeral and estate costs.
I – Income. Your annual income times the number of years your family would need it.
M – Mortgage. The remaining balance, so your family could stay in the home.
E – Education. What you’d like to set aside for each child’s schooling.
DIME is intentionally simple. It doesn’t account for inflation, investment returns, Social Security survivor benefits or a stay-at-home parent’s unpaid work, so use it as a starting point for a conversation rather than a final answer.
Learn more about life and health coverage through Shadow Lake Brokerage, or email support@shadowlakebrokerage.com.
Talk with Shadow Lake Brokerage
Life and health coverage is handled through our sister company, Shadow Lake Brokerage. Bring your DIME estimate and they’ll walk through term and permanent options with you.
FAQ
Calculator FAQ
What is the DIME method for life insurance?
DIME adds up four needs: Debt (plus final expenses), Income replacement for a number of years, the Mortgage balance, and Education costs for children. Subtract existing life insurance and savings set aside for the purpose to get a rough coverage target.
How many years of income should I replace?
A common approach is to cover income until the youngest child is self-supporting or until a spouse could reach retirement. Some people use 10 years as a simple starting point and adjust from there.
Should I count group life insurance from work?
You can, but group coverage often ends or changes when you leave the job. Many people count only part of it, or none, when deciding how much individual coverage to own.
Is this a life insurance quote?
No. This is an estimate only and not a quote or an offer of coverage. Premiums and eligibility depend on age, health, the amount and type of coverage, and underwriting.
Who handles life insurance for Shadow Lake Insurance clients?
Life, disability and long-term care are handled by our sister company, Shadow Lake Brokerage. They can review your DIME estimate and compare options from the life carriers they work with.