Life Insurance Planning with the DIME Method
DIME is a practical framework to estimate coverage: Debt + Income + Mortgage + Education. It gives you a rational starting target before comparing plan types.
How DIME Works
D: Debt
Add non-mortgage debts: car loans, credit cards, personal loans, and final expenses.
I: Income
Multiply annual income by the number of years your household needs replacement income (often 7-10 years).
M: Mortgage
Use current mortgage payoff amount so your household can keep the home without forced downsizing.
E: Education
Add projected education costs for children or dependents who rely on your income plan.
Example: Debt $35k + Income ($70k x 8 years = $560k) + Mortgage $240k + Education $80k = $915,000 target.
D + I + M + E = starting life insurance target range.
Important Notes
- DIME is a planning framework, not a final underwriting quote.
- Final premium depends on age, health profile, tobacco status, and term length.
- Most families can compare multiple term amounts around the DIME target to balance budget and protection.
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