Coverage planning

Life insurance needs calculator

A life insurance needs calculator is not supposed to decide what matters for your household. It is supposed to give each obligation a line and let you decide whether it belongs there.

Use the DIME side when you want to see debt, income replacement, mortgage, education, and final expenses separately. Use the income check as a second opinion. The mismatch between the two is part of the answer.

Coverage tally

Annual income

Replacement yearsDebt to clear

Mortgage balance

Education fund

Existing coverage

Your planning range

Low

—

Mid

—

High

—

Coverage gap after existing coverage—

Audit of your tally (midpoint)

Planning range (midpoint)

—

When this page helps

You need a checklist rather than a rule of thumb; you are reviewing a policy after a new loan or child; or you want to explain the planning assumptions to a spouse or co-parent.

When it does not

This is not a life settlement calculator and it does not value an existing policy for sale. It is also not a health insurance cost tool.

Example 1

Education included: $50,000 per child for two children instead of a generic multiplier That choice is visible and can be revised later

Example 2

Mortgage excluded because liquid assets can cover $180,000; eight years of income plus debt remain The sheet reflects the household plan rather than a forced mortgage payoff

Common traps

DIME can look more precise than it is

Each line still comes from an assumption.

A final-expense buffer is not the same thing as every future household expense.

Education costs vary sharply by plan and location; use your own target, not a national headline.

If one partner can cover most expenses alone, full income replacement may overstate the need.

Compare the next question

Life insurance calculator Life insurance coverage calculator Life insurance needs analysis

Questions

It commonly refers to debt, income, mortgage, and education. NeedTally also lets you include a final-expense buffer as a separate visible line on the income method.

This is a planning estimate, not insurance, legal, tax, or investment advice, and not a recommendation to buy a policy.