⚑ An estimate, not advice
This tool gives a working estimate for educational purposes only and is not financial, tax, legal or religious advice. Coverage needs vary; speak to a licensed adviser, and if halal cover matters to you, consider takaful.
$
$
$
$
$
Estimated coverage needed
$0
$0Income replacement
$0Debts + mortgage
$0Future / education
$0Less existing assets
Advertiser · affiliate
Compare term life quotes
Term life is the affordable way to cover a large DIME need for the years your family depends on you. Compare a few quotes before you decide.
Get quotes →How the DIME method works
DIME estimates the cover your family would need by adding the four things life insurance is meant to replace, then subtracting what you already have set aside:
Coverage = (Income × Years) + Mortgage + Other debts + Education − Existing assets
- Debt — credit cards, loans and final expenses your family would inherit.
- Income — your annual income multiplied by the number of years your household would need support.
- Mortgage — the outstanding balance needed to pay off the family home.
- Education — future costs such as children's schooling or university.
Subtracting existing savings and any cover you already hold avoids over-insuring. The headline figure is a starting point, not a precise quote.
Frequently asked questions
How much life insurance do I need?
Add your debts, income replacement (annual income × years), mortgage balance and future education costs, then subtract existing savings and coverage — the DIME method gives a quick, sensible estimate.
What is the DIME method?
DIME stands for Debt, Income, Mortgage and Education — the four needs life insurance typically replaces. It is a widely used shortcut for estimating how much cover to buy.
Is term or whole life better for this?
Most families meet a large DIME need affordably with term life for the years dependents rely on them. Whole life costs far more for the same coverage, so choose based on budget and how long you need cover.
Is conventional life insurance halal?
Many scholars consider conventional life insurance problematic due to riba and gharar. Takaful, a cooperative mutual-donation model, is the widely accepted halal alternative — see our life insurance & takaful guide.
Sources & further reading
- DIME method — industry-standard life insurance needs analysis (Debt, Income, Mortgage, Education).
- U.S. insurance consumer guidance on choosing a coverage amount and term length.