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Life Insurance Calculator

Updated June 2026 · By the NumberBench editorial team · How we calculate

Estimate how much life insurance your family actually needs with the DIME method — and see the result as a multiple of your income against the common 10–12× rule.

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Recommended coverage—
Income replacement—
As a multiple of income—
Already covered—

What the coverage is for

How you compare

🛡️ Compare term life insurance quotes

Check it out

Cover the gap, not a guess

Round-number rules like “10× income” are a fine gut-check, but a needs-based estimate is better: add up the income your family would need to replace, the debts and mortgage to clear, and education costs to fund — then subtract what you’ve already saved or insured. The result is the coverage gap. We also express it as a multiple of your income so you can sanity-check it against the common 10–12× guideline.

How it’s calculated

Coverage = (income × years to replace) + debts + final expenses + education fund − existing savings and coverage. The multiple = coverage ÷ annual income.

Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.

Worked example

A $70k earner replacing income for 10 years with $220k of debt, $15k final expenses, and a $100k college fund, minus $50k saved, needs about $985,000 — roughly 14× income.

Common mistakes

  • Insuring only the mortgage and forgetting years of lost income.
  • Counting existing coverage twice, or forgetting employer policies end when the job does.
  • Buying whole life when low-cost term covers the actual need.

Where it is used

  • Sizing a term life policy before getting quotes.
  • Re-checking coverage after a home purchase or a new child.
  • Comparing a rule-of-thumb figure to your real needs.

Frequently asked questions

How much life insurance do I need?

A common rule is 10–12× your annual income, but a needs-based method (DIME) is more precise: cover Debts, Income replacement, Mortgage, and Education, minus savings you already have.

What is the DIME method?

DIME totals four needs: Debt, Income to replace, Mortgage, and Education costs, then subtracts existing savings and coverage.

Term or whole life?

Term is far cheaper and covers a set period (e.g., until kids are grown or the mortgage is paid). Most families' needs are well met by term; whole life is more complex and costly.