Skip to content

    Under active development. New calculators and features ship every week. Everything currently runs free while the site matures — pricing pages are a preview, checkout is not open yet.

    Search ⌘K
    Calculates locally in your browser
    Insurance / Cover

    Life Insurance Needs

    How much life cover a household needs on the DIME method: debt, income replacement, mortgage and education, less what is already there.

    Cover needed$1,175,000Total need$1,325,000Income replacement$900,000
    Cover needed
    $1,175,000
    DIME less existing assets
    Total need
    $1,325,000
    Before assets
    Income replacement
    $900,000
    10 years
    Already covered
    $150,000
    Assets and existing policies
    DIME components
    Income replacement assumes the capital is invested, not spent.
    DIME components
    ComponentAmount
    Debt$25,000
    Income replacement$900,000
    Mortgage$300,000
    Education$100,000
    Less assets−$150,000
    Inspect the model
    Choose a quick result view, a scaled comparison, or the complete diagnostic set.
    Cover against years of income
    Each year of replacement adds one year of income.
    Cover against years of income0.0005.656e+51.131e+61.697e+62.262e+62.828e+65y5y10y10y15y15y20y20y25y25yLife Insurance Needs
    Canonical equations
    The exact relationships implemented by this engine.

    Debt + Income + Mortgage + Education · Less existing assets.

    max(0, need − assets) · The gap to insure.

    finance methodology

    A clear path from inputs to results.

    How much life cover a household needs on the DIME method: debt, income replacement, mortgage and education, less what is already there.

    Step-by-step methodWorked exampleAssumptions explained

    How to use

    1. Set annual income to replace ($).
    2. Set years of replacement.
    3. Set other debt ($).
    4. Set mortgage balance ($).
    5. Read the headline metrics, then check the table for the detail.

    The formula

    Debt+Income+Mortgage+EducationDebt + Income + Mortgage + Education

    Reference: DIME needs analysis — debt, income, mortgage, education, less existing assets — the needs-based approach set out in the NAIC Life Insurance Buyer’s Guide.

    Worked example

    At the default inputs

    Inputs
    • Annual income to replace ($): 90000; Years of replacement: 10; Other debt ($): 25000; Mortgage balance ($): 300000; Education fund ($): 100000; Existing assets and cover ($): 150000
    Calculation path
    1. 1

      Cover needed: $1,175,000 · Total need: $1,325,000 · Income replacement: $900,000 · Already covered: $150,000

    Result

    Cover needed: $1,175,000 · Total need: $1,325,000 · Income replacement: $900,000

    Interpreting the result

    The household needs about $1,175,000 of cover.

    Assumptions & limitations

    • Income replacement is capitalised, not discounted.
    • Existing cover and assets are netted off.

    Frequently asked questions

    Is DIME the only method?

    No — human-life-value and needs-analysis variants exist; DIME is the simplest to explain.

    Should I include a spouse’s income?

    Yes, if the household depends on it.

    Methodology last reviewed 2026-10-22. Results are informational and not financial or engineering advice — see our disclaimer.