Life Insurance Calculator
How much life insurance do you need? DIME+ needs analysis, quick income multiplier, and coverage gap check. Three methods, one answer.
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How to Use This Calculator
How Much Do I Need? tab
The default tab. Uses the DIME+ method (Debt + Income + Mortgage + Education + final expenses) to calculate exactly how much coverage your family needs. Enter your income, debts, number of children, and existing resources. The calculator shows a detailed breakdown of every component.
Quick Estimate tab
Need a number in 30 seconds? Enter your income, age, and life stage. The calculator recommends a multiplier (10x-15x your income) based on your situation — and compares it to industry benchmarks from Dave Ramsey and financial planners.
Coverage Gap tab
Already have some insurance? Enter your current coverage (employer + personal), income, and debts. See whether you're adequately covered or under-insured — with an approximate monthly cost to close the gap.
Share your result
Every input is encoded in the URL. Click Share to send your exact scenario to a spouse, financial advisor, or insurance agent.
The Formula
The DIME+ method calculates total coverage needed from five components, then subtracts what you already have:
Income Replacement = Annual Salary × Years Until Youngest Child Turns 18
Debts = Mortgage + Auto Loans + Student Loans + Credit Cards + Other
Education Fund = Number of Children × $100,000 per child
Final Expenses = $15,000 (funeral, medical, estate settlement)
Net Coverage Needed = Total Needs − Savings − Existing Coverage − SS Survivor Benefits
The Quick Estimate uses an income multiplier approach: start at 10x your income, then add 1x for each risk factor (dependents, homeownership, major debts, younger age). Most financial planners recommend 10-15x income as a range.
The Coverage Gap uses a simplified DIME with income × years until 65, plus debts and education, minus your current coverage. If there's a gap, we show an approximate monthly cost based on industry rate averages for healthy non-smokers.
Life Insurance Coverage in America (2026)
According to LIMRA's 2025 Insurance Barometer Study:
- 102 million American adults are uninsured or underinsured
- Average policy face amount: $178,000 — often less than 2x salary
- 40% coverage gap between what families need and what they have
- Young adults overestimate term life cost by 10-12x
- A $500K 20-year term policy for a healthy 30-year-old costs approximately $25-30/month
Most employer plans provide 1x salary as a free benefit. Financial planners recommend 10-15x salary for families with dependents. The gap is where personal term life insurance comes in.
Example
David & Lisa — 34, two kids, Austin TX
David earns $95K, Lisa earns $55K. Two children (ages 4 and 7). Mortgage $340K, auto loan $22K, student loans $38K. Savings $45K. David's employer provides $95K coverage (1x salary).
How Much Do I Need? tab (for David)
David needs approximately $1.8M in additional term life insurance. His employer's 1x salary coverage covers only 5% of his family's needs.
Quick Estimate tab (David)
The quick estimate of $1.33M is lower than the detailed $1.8M because it doesn't separately account for specific debts and education costs.
Coverage Gap tab (David)
Term vs Whole Life Insurance
For most families, term life insurance is the right choice. It provides the highest coverage for the lowest cost during the years when your family depends on your income. Whole life is primarily used for estate planning by high-net-worth individuals.