Question 1

What does DIME stand for in life insurance?

Accepted Answer

DIME is a shorthand for the four components of a common needs estimate: Debt, Income (years of replacement), Mortgage (remaining balance), and Education (future child education costs). Add them and subtract existing coverage and other assets to estimate the gap.

Question 2

How many years of income should I replace?

Accepted Answer

A typical rule of thumb is to replace 5–10 years of income, or enough to cover the years until children are independent and the surviving spouse reaches retirement. The right number depends on your family's expenses and other income sources.

Question 3

Is the DIME method enough on its own?

Accepted Answer

DIME is a quick, transparent starting estimate, not a full financial plan. It ignores taxes, final expenses, inflation, and survivor Social Security. For a precise figure, combine it with a licensed agent's needs analysis.

Question 4

Does DIME include my existing life insurance?

Accepted Answer

Yes. Subtract any existing employer and personal life coverage, plus other assets that could cover the gap, from the DIME total to find the additional amount you likely need to buy.

Life Insurance DIME Calculator

DIME Coverage Estimator

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