Today in our coffee chat, we’re looking at life insurance for young couples just starting out.

Let’s talk about Liam and Sophie’s story.

Story:
Liam and Sophie, ages 30 and 28, recently got married and bought their first home together. Liam is a software engineer, and Sophie is a nurse. They each make $50,000 a year, with a combined income of $100,000. They have a $10,000 car loan and a $200,000 mortgage. They’re planning to start a family soon and want to ensure their financial security.

Understanding the DIME Method:
The DIME method is a simple way to calculate life insurance needs by looking at four key areas: Debt, Income, Mortgage, and Education. This approach helps ensure your loved ones are financially protected if something happens to you.

Solution Using DIME Method:

• Debt: $10,000 to cover their car loan.
• Income: They want to replace their combined income for 5 years ($100,000 x 5 = $500,000) to ensure Sophie and their future children are supported.
• Mortgage: $200,000 to pay off the mortgage.
• Education: Planning for future children’s education, they estimate $100,000.

Funeral Expenses:

• $20,000 to cover funeral costs.

Total Insurable Amount: $830,000

Summary and Best Options:
Liam and Sophie could each benefit from a term life insurance policy that covers the length of their mortgage and provides income replacement during their working years. If they’re looking for lifelong coverage with a cash value component, a permanent life insurance policy could also be considered.

Liam and Sophie now have peace of mind knowing their future is protected. If you and your partner want to ensure financial security for your family, schedule a call with us today for a free consultation. We’ll guide you through the DIME method to find the perfect plan.

Disclaimer:
This example is for illustration purposes only. Each person’s life insurance needs are different and require a personalized assessment.