One of the most crucial questions in life insurance is determining the right amount of coverage. Too little, and your loved ones might face financial hardship. Too much, and you might be paying more than necessary. The DIME method can be a helpful guide in estimating your coverage needs.

DIME stands for Debt, Income, Mortgage, and Education. This approach considers these four areas to help you calculate how much coverage is ideal. Begin by calculating your debts—credit cards, car loans, and other obligations that you would want to be paid off. Also include the potential funeral/burial expenses. Next, calculate an amount for income replacement, ensuring your family has sufficient funds to maintain their lifestyle. If you have a mortgage, include its balance to protect the family home. Finally, add education costs if you have children, so they can pursue their goals without financial limitations.

Add these figures, and you’ll have a clear estimate of the life insurance coverage that meets your family’s unique needs. The result is a policy amount that balances affordability and comprehensive protection.

Let’s work together to find a life insurance plan tailored to your family’s financial needs.