COVERAGE CALCULATOR
How much life insurance do you really need?
Use our quick calculator and the proven DIME method to estimate the right coverage amount in about two minutes — no signup, no phone calls.
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How much life insurance do you need?
There is no one-size-fits-all number, but a good policy replaces the income and covers the obligations your family would lose if you were gone. Use the calculator below for a quick estimate, then refine it with the DIME method.
FREE COVERAGE CALCULATOR
Get a personalized coverage number in 2 minutes
Skip the “10× your salary” rule. Our calculator factors in income, debts, dependents, and existing savings — then gives you a coverage range that actually fits your life.
2-min
Average time
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YOUR COVERAGE
$500K
recommended for your family
The DIME method
A simple formula that actually works
DIME adds up the four things your coverage should pay off. Total them, subtract savings and existing coverage, and you have a target death benefit.
- D — Debt: credit cards, car loans, and other debts (excluding the mortgage).
- I — Income: your annual income × the number of years your family would need support (often 10–15).
- M — Mortgage: the full remaining balance on your home loan.
- E — Education: the estimated cost of college or future schooling for your children.
A common shortcut is 10–12× your annual income, but DIME gives a more accurate, personal number because it accounts for your actual debts and family situation.
Common questions
Coverage amount FAQ
How much life insurance do I really need?
A common rule is 10–12× your annual income, but the better approach is the DIME formula: Debts + Income replacement + Mortgage + Education costs. Subtract existing savings. For most families with young kids, that lands somewhere between $500K and $1M of term coverage.
Is term or whole life better for a young family?
For most young families, term life is the better fit. It’s 5–10× cheaper than whole life and covers the years when you most need protection — while children are at home and the mortgage isn’t paid off. Whole life only makes sense for specific estate-planning, lifelong-dependent, or high-net-worth cases.
Can I get life insurance with a pre-existing condition?
Yes — but the type of policy and your premium will depend on the condition. Well-managed conditions (controlled diabetes, treated high blood pressure) usually qualify for standard term policies, sometimes at a higher rate. For more serious conditions, guaranteed-issue or simplified-issue no-exam policies skip the medical underwriting entirely.
What happens if I outlive my term policy?
The policy expires and the coverage ends with no payout. Most term policies offer a conversion option — usually until age 65 — that lets you swap to a permanent policy without a new medical exam. Many also offer renewal, but renewal premiums are much higher because they reset to your current age.
Are the sample rates on this site real quotes?
No. All rates shown are illustrative and educational only. Your real premium depends on age, health, smoking status, state, and the insurer’s underwriting. Use our sample tables to understand ranges, then get a binding quote from a licensed broker or insurer.