Use the DIME method to find your ideal coverage in 60 seconds — then compare quotes from 30+ A-rated carriers.
Most financial experts recommend 10–15 times your annual income in life insurance coverage. For a more precise number, use the DIME method: add your Debts + Income replacement + Mortgage + Education costs, then subtract existing coverage. A family earning $75,000 with a $280,000 mortgage typically needs $500,000–$1,000,000. Use our free calculator below to find your number in under 60 seconds.
Estimate your ideal coverage using the DIME formula — takes under 60 seconds.
DIME is a formula that calculates life insurance needs based on four factors: Debt, Income, Mortgage, and Education. It produces a more accurate number than the "10× income" rule because it accounts for your specific financial obligations. Most financial planners recommend DIME as the gold standard for calculating coverage needs.
Your Number = Total Debts + (Annual Income × Years Needed) + Mortgage Balance + Education Fund − Existing Coverage & Savings
For example, a family with $40,000 in debts, $75,000 income (10 years needed), a $280,000 mortgage, $100,000 education fund, and $50,000 existing coverage would need: $40K + $750K + $280K + $100K − $50K = $1,120,000. That may sound like a lot, but a healthy 35-year-old can get a $1M 20-year term policy for approximately $45–$75/month.
Coverage needs change dramatically throughout life. Here are expert recommendations based on 4,500+ client consultations across every life stage:
Lock in low rates while healthy. Covers co-signed loans, student debt, and funeral costs. A 30-year term runs under $20/month — the cheapest rates you'll ever get. Start now even without dependents.
Cover your shared mortgage, joint debts, and income replacement. Separate policies with living benefits riders protect against serious illness too. Both spouses need their own coverage.
The critical stage. Factor in 18+ years of dependents, childcare ($30K–$60K/yr), college tuition ($25K–$50K/child), mortgage, and full income replacement. Use the calculator above for your exact number.
Biggest coverage gap stage. Layer a large term (income replacement) with permanent coverage (estate + cash value). Living benefits and IUL become especially valuable for care planning.
Shift to estate planning and surviving spouse income. Convert expiring term to permanent. Living benefits replace standalone LTC insurance — see our LTC comparison →
Final expenses ($10K–$25K), legacy gifts, and surviving spouse supplement. Guaranteed issue requires no health questions. $30–$80/month. Read advance planning guide →
A healthy 30-year-old non-smoker can get $500,000 of 20-year term life insurance for approximately $20–$35 per month. Rates increase with age: a 40-year-old pays $30–$50/month, and a 50-year-old pays $65–$120/month for the same coverage. Women typically pay 15–25% less than men. These are real rates from the 30+ carriers we represent.
| Age | $250K / 20-Yr Term | $500K / 20-Yr Term | $1M / 20-Yr Term |
|---|---|---|---|
| 25 | $12–$18/mo | $18–$28/mo | $30–$50/mo |
| 30 | $14–$20/mo | $20–$35/mo | $35–$60/mo |
| 35 | $16–$24/mo | $25–$42/mo | $45–$75/mo |
| 40 | $22–$32/mo | $30–$50/mo | $55–$95/mo |
| 45 | $30–$48/mo | $48–$80/mo | $85–$150/mo |
| 50 | $45–$72/mo | $65–$120/mo | $120–$225/mo |
| 55 | $70–$115/mo | $110–$200/mo | $200–$380/mo |
| 60 | $120–$190/mo | $180–$340/mo | $340–$620/mo |
Estimates for healthy non-smokers. Actual premiums vary by carrier, health, and underwriting. We compare 30+ A-rated carriers for your lowest rate.
Yes. A stay-at-home parent provides childcare, household management, cooking, transportation, and other services valued at $35,000–$60,000+ per year. If that parent dies, the surviving spouse must pay for these services while still earning income. Most advisors recommend $250,000–$500,000 for a stay-at-home parent. Both spouses should have their own separate policies.
It depends on your situation. The 10× rule is a reasonable starting point for single-income families without large debts. But families with a mortgage, multiple children, or a non-working spouse often need 15–20× income. The DIME formula gives a more accurate number because it accounts for your specific debts, mortgage balance, and education costs. Use our calculator above for a personalized recommendation rather than relying on rules of thumb.
Employer coverage is a good start but rarely enough. Most employer policies provide 1–2× your salary — far below the 10–15× experts recommend. Employer coverage also ends when you leave the job, and you can't take it with you. A personal policy stays with you regardless of employment changes. Subtract your employer coverage from your DIME calculation to find the gap, then fill it with a personal term or permanent policy.
Term life is the most cost-effective choice for most families. It provides the highest coverage per dollar and can be matched to your mortgage length. Whole life adds cash value and lifetime coverage but costs 5–10× more for the same death benefit. Many clients use a combination: a large term policy for income replacement plus a smaller whole life for estate planning and cash value growth. Read our full policy comparison →
We strongly recommend adding a living benefits rider to any policy. This lets you access a portion of your death benefit while alive if diagnosed with a critical illness (heart attack, stroke, cancer), chronic illness, or terminal illness. The funds are tax-free and can cover medical bills, mortgage payments, or lost income during recovery. Many carriers include living benefits at no extra cost. Read our full living benefits vs. LTC guide →
For most families: a 20- or 30-year term policy with a living benefits rider, sized using the DIME formula. Add permanent coverage as your estate grows. We compare 30+ A-rated carriers — schedule a free call or get an instant DIY quote.
📘 Life Insurance Guide — Term vs. whole vs. universal compared by life stage
🩺 Living Benefits vs. LTC — Why living benefits win for most families
🏠 Mortgage Protection Guide — Got a mailer? See why term life is the smarter choice
💰 Pricing Page — Cost ranges by policy type from 30+ carriers
📋 Advance Planning — Estate planning, wills, trusts, and legacy protection