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Life Insurance Needs

How much life insurance do you actually need?

Use the DIME method to size term coverage: debts, income replacement, mortgage, and education. See your exact gap in seconds.

$1,248,000

coverage gap

Est. $499/mo term premium

Income & obligations

DIME breakdown

Income replacement

$850,000

Debts + mortgage

$273,000

Education fund

$200,000

Total needed

$1,323,000

Coverage gap

$1,248,000

Freedom Coach™

You need about $1200000 more in coverage.

Total needed: $1,323,000 (income replacement + debts + kids' education). Estimated 20-year term premium: $499/mo.

  • Buy TERM, not whole life. 20–30 year level term covers your working years for ~10% of whole-life premiums.
  • Layer policies: a $500k 20-year (kids at home) + $250k 30-year (mortgage). Cheaper than one giant policy.
  • Both spouses need coverage — even a stay-at-home parent's work would cost $50k+/yr to replace.

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Frequently asked questions

How much life insurance do I need?

The DIME method: Debt + Income (× years to replace) + Mortgage + Education. Most working parents need 10–12× annual income in term coverage.

Term or whole life?

Term. Almost always term. It's ~10% the cost and covers your working years — when your family actually needs replacement income.

Does a stay-at-home parent need life insurance?

Yes. Their unpaid work (childcare, meals, transport) costs $50k+/yr to replace. Get at least $250k–$500k term coverage.

How long a term should I buy?

Match it to your longest obligation — usually until kids are independent (20-year term) or the mortgage is paid (30-year).

When should I skip life insurance?

If no one depends on your income and your assets cover final expenses, you don't need coverage. Single with no kids or debt = often no need.

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