---
title: What is the DIME method for life insurance | Coverfolk
url: https://coverfolk.com/answers/dime-method
updated: 2026-10-08
---

# What is the DIME method for life insurance?

Updated October 8, 20262 sourcesCoverfolk team[Fact checked](/editorial-standards)

The short answer

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.

## Sources

1. [NerdWallet: How Much Life Insurance Do I Need?](https://www.nerdwallet.com/insurance/life/learn/how-much-life-insurance-do-i-need)
2. [OneDigital: How Much Life Insurance Do I Need?](https://www.onedigital.com/blog/how-much-life-insurance-need/)