Life Insurance Coverage for a $100,000 Income: $3,000,000
For a $100,000 annual income over 30 years, the DIME method estimates $3,000,000 in life insurance coverage. See how the calculation breaks down. Free life insurance calculator.
Frequently asked questions
What is the DIME method for life insurance?
DIME stands for Debt, Income, Mortgage, and Education. It estimates life insurance coverage by adding your outstanding debts, years of income to replace, remaining mortgage, and future education costs. It's a more complete estimate than a simple income multiple.
What's the difference between term and whole life insurance?
Term life covers a fixed period and builds no cash value, with a lower premium. Whole life is permanent and accumulates cash value, but costs significantly more. Which fits depends on your budget, time horizon, and goals.
How many years of income does life insurance typically cover?
A common approach is to cover enough years for your dependents to reach financial independence — often 10 to 20 years of income. The DIME method lets you set this based on your family's specific situation rather than a fixed rule.