Life insurance you actually need.
The DIME method, modernized. Skip the agent guessing, see your real number in 60 seconds.
Based on DIME (Debt, Income, Mortgage, Education), the framework financial planners actually use, not a quick rule-of-thumb.
Read the math
Every formula on this page is explained in plain English, with the worked examples that produced it.
Term vs Whole Life Insurance: The Honest Breakdown Most Agents Won't Give You
Whole life insurance is sold heavily. Term insurance is recommended by almost every fee-only financial planner. Here's why the gap exists, the math behind each option, and the specific situations where each one actually makes sense.
How Much Life Insurance Do You Actually Need? The DIME Method, Explained Honestly
Most online calculators inflate the number to sell you more coverage than you need. Here's the real framework, DIME, for figuring out the right amount, plus the term-vs-whole-life decision that most people get wrong.
Common questions
What is the DIME method?
DIME stands for Debt, Income, Mortgage, and Education, the four categories of financial obligations life insurance should cover. It's the framework used by independent financial planners and is more accurate than the old '10x your income' rule.
Term or whole life insurance?
For most people, term life is the right answer. It's 5–10x cheaper than whole life for the same coverage, and most families don't need coverage past age 65 once kids are grown and the mortgage is paid. Buy term, invest the difference.
How long should my term be?
Match the term to your longest financial obligation. If you have a newborn and a 30-year mortgage, a 30-year term makes sense. Most people in their 30s/40s do well with 20–30 year terms.
Is this the same as mortgage life insurance?
No, and the difference matters. Mortgage life insurance (sometimes sold as mortgage protection insurance) is a separate policy that pays your lender, usually with a payout that shrinks as your balance drops, and it typically costs more per dollar of coverage than plain term life. This calculator sizes a normal term life policy that pays your family, who can then choose whether to clear the mortgage. That is why mortgage balance is an input here: the M in DIME. For most people one term policy covering everything beats a stack of single-purpose ones.
Do I really need life insurance if I'm single with no kids?
Usually no, unless you have co-signed debt (private student loans with a parent), shared business obligations, or want to leave a legacy. Otherwise your savings will likely cover final expenses.