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Life Insurance Needs Calculator
Calculate how much life insurance coverage you need
Your Information
$
$
Mortgage, loans, etc.
Children, spouse, etc.
years
Until dependents are independent
$
$
Emergency fund, investments
Recommended Coverage
$1,465,000
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Minimum Coverage
$500,000
5x income
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Maximum Coverage
$1,500,000
15x income
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20-Year Premium
$5,274
Annual estimate
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Coverage Recommendation: $1,465,000
Income Replacement
$1,000,000
Debt Coverage
$250,000
Education Fund
$200,000
Less Savings
-$50,000
Coverage Breakdown (DIME Method)
Income Replacement (20 years):$1,000,000
Debt Payoff:$250,000
Education (2 kids):$200,000
Emergency Fund:$50,000
Final Expenses:$15,000
Estimated Annual Premium
These are estimated premiums based on age 35. Actual rates depend on health, gender, lifestyle, and insurer.
10-Year Term
$3,516/yr
- ✓ Lowest premium
- ✓ Short-term needs
- ✗ Expires sooner
- ~ Good for temporary debts
20-Year Term
$5,274/yr
- ✓ Balanced cost
- ✓ Most popular choice
- ✓ Covers kids to adulthood
- ~ Recommended for most families
30-Year Term
$7,032/yr
- ✓ Longest coverage
- ✓ Lock in young rate
- ✗ Higher premium
- ~ Good for young families
Coverage Range Comparison
Minimum Coverage (5x Income)
Basic protection, covers immediate needs only
$500,000
Recommended Coverage (DIME Method)
Comprehensive protection for family needs
$1,465,000
Maximum Coverage (15x Income)
Premium protection, maintains full lifestyle
$1,500,000
Understanding Life Insurance
DIME Method Explained
- Debt: Pay off mortgage, loans, credit cards
- Income: Replace 5-10 years of income
- Mortgage: Ensure home is paid off
- Education: Fund children's college ($100K each)
Term vs Permanent
- Term: Affordable, fixed period, no cash value
- Whole Life: Permanent, builds cash value, expensive
- Universal: Flexible premiums, variable death benefit
- Most people need term life insurance
Who Needs Life Insurance?
- ✓ Parents with dependent children
- ✓ Primary breadwinner for family
- ✓ Anyone with significant debts (mortgage, loans)
- ✓ Business owners with partners
- ✗ Single with no dependents (may not need much)