Calculate exact life insurance coverage using the DIME method. Compare term vs whole life. Free life insurance needs calculator. No signup.
Most people guess when it comes to life insurance coverage — and most guess too low. The DIME method calculates your true coverage need: Debt plus Income replacement 10x salary plus Mortgage plus Education. On an $80,000 salary with $300,000 mortgage and $40,000 in other debts, your coverage need is typically $1.1M-$1.4M. This calculator shows your exact number.
DIME = Debt + Income + Mortgage + Education. Example: $25,000 in debts plus $800,000 (10x $80K salary) plus $280,000 mortgage plus $100,000 college for 2 kids = $1,205,000 in coverage needed. Compare to the outdated 10x salary rule that often leaves coverage gaps.
30-year-old male non-smoker healthy: 20-year term $500,000 policy costs approximately $22-28/month. Whole life $500,000 costs $350-500/month. Difference: $320-470/month invested in index funds at 7% for 20 years = $170,000-$250,000 — far more than whole life cash value. Term wins mathematically for most people.
Average monthly cost for healthy non-smokers: 30-year-old female $500,000 20-year term approximately $18-22/month. 30-year-old male approximately $22-28/month. 40-year-old female approximately $30-40/month. 40-year-old male approximately $38-52/month. Rates increase significantly after 50 and with health conditions.
Life insurance is primarily for income replacement. You may not need it if: no dependents relying on your income, you are retired with sufficient assets to support surviving spouse, surviving spouse is financially independent, or your assets significantly exceed your debts.
Buy term life insurance young and healthy — rates lock in at application. A 25-year-old buying a 30-year term is protected until 55 at the lowest rate ever available to them. Delaying 10 years to 35 increases premiums 50-100%. Buy when young and healthy.
Yes. Replacement cost of stay-at-home parent labor (childcare, household management, transportation) is typically $40,000-$70,000 per year. If they passed, the surviving spouse would need to pay for these services. $250,000-$500,000 of term life on a stay-at-home parent is reasonable and very affordable — usually $15-$30/month.
Usually no. Employer policies typically provide 1-2x salary — far below the 10x recommended. Group coverage also ends when you leave the job, and is not portable. Use employer coverage as supplemental, not primary. Buy individual term insurance while young and healthy to lock in low rates for 20-30 years.
Yes — every FreeFixo tool, including the How Much Life Insurance Do I Need? — Free Coverage Calculator, is 100% free with no paywall, no premium tier, and no usage limits. You do not need to create an account, enter a credit card, or share an email.