Your Financial Details
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Coverage Recommendation
Recommended Coverage
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Income Replacement Needed—
Debt Payoff—
College Fund—
Final Expenses—
Less: Existing Assets—
Monthly Premium Estimate (term)
Estimates based on DIME method. Premium estimate for healthy 35-year-old — actual rates vary by age, health, and insurer. Get quotes from multiple providers.
How Much Life Insurance Do You Actually Need?
Life insurance is one of the most important financial decisions for anyone with dependents, yet most people are either significantly under-insured or pay for coverage they don't need. The goal is simple: if you die, your family should be able to maintain their standard of living without financial hardship.
The DIME Method
The DIME method is a simple framework for calculating coverage needs: Debt (all outstanding debts including mortgage), Income (years of income your family needs replaced), Mortgage (remaining mortgage balance — often the biggest item), and Education (college costs for your children). Add these together and subtract existing savings and insurance to get your coverage gap.
Term vs Whole Life Insurance
- Term life: Pure insurance for a set period (10, 20, 30 years). Cheapest cost per dollar of coverage. Best for most people — covers the years when dependents rely on you most.
- Whole life / Universal life: Permanent coverage with a cash value component. Far more expensive — often 10–15x the premium of equivalent term coverage. Rarely the best choice for pure insurance needs.
Frequently Asked Questions
When is the best time to buy life insurance? ▼
The best time is when you're young and healthy — premiums are based primarily on age and health at the time of application. A healthy 30-year-old might pay $25–$35/month for $500,000 in 20-year term coverage. The same coverage purchased at 45 could cost $80–$120/month. Buy when you have dependents who rely on your income, and lock in rates while you're healthy.
Do I need life insurance if I'm single with no dependents? ▼
Probably not for income replacement purposes. The main exceptions: you have significant co-signed debts, aging parents who depend on you financially, or you want to lock in low rates now before potential health changes. If you have no one financially dependent on you, life insurance is largely unnecessary — that money is better invested for retirement.
Is employer-provided life insurance enough? ▼
Usually not. Employer group life insurance typically provides 1–2x your annual salary — far less than most families need. It's also tied to your employment, so you lose it if you change jobs. Treat employer-provided coverage as a bonus, not a primary coverage solution.