DIME is a simple way to estimate how much life insurance you need. You add up your Debt, Income, Mortgage, and Education costs.
D is for debt. Add up what you owe, not counting your mortgage. NerdWallet also adds an estimate for funeral costs.
I is for income. Multiply your yearly income by the number of years your family would need help. OneDigital uses 10 years as an example.
M is for mortgage. Add what it would take to pay off your home loan.
E is for education. Add what school and college might cost for your kids.
Add all four for a ballpark number. Then subtract life insurance and savings you already have. DIME also misses the unpaid work of a stay at home parent.
- Debt: car loans, credit cards, other loans, funeral costs
- Income: yearly pay times years of support
- Mortgage: what is left on your home loan
- Education: future school costs
More questions
Does DIME count my work life insurance?
No. Subtract any coverage you already have, like a plan at work.
Is DIME exact?
No. It is a quick estimate. A full review of your money can give a better number.
