“How much life insurance do I need?” It’s a simple question with a not-so-simple answer — because the right number has nothing to do with rules of thumb and everything to do with your family’s actual math.

You’ve probably heard “10 times your income.” It’s tidy, but it ignores your mortgage balance, your kids’ ages, your spouse’s income, existing savings, and what it actually costs to keep your household running. Two families with the same income can need wildly different amounts.

A better approach is the DIME method — add up four things:

• Debt: everything you owe except the mortgage (car loans, credit cards, lines of credit).
• Income: the years of income your family would need to replace. A common starting point is 10–20 years, adjusted for your spouse’s earning power and how long until the kids are independent.
• Mortgage: the full remaining balance, so your family can stay in the home.
• Education: future costs for each child.

Then subtract what you already have — savings, existing coverage, group benefits — and the gap is your number.

Two things surprise most people. First, group life insurance through work is rarely enough on its own, and it disappears if you change jobs. Second, the cost of term insurance for a healthy non-smoker is often far less than expected — the price of “too much” coverage is usually smaller than the price of too little.

Life changes, and so should the math. Marriage, kids, a new mortgage, or a business are all reasons to rerun the numbers.

Want to see your own number? Our Insurance Needs Analysis walks through the full calculation — life, critical illness, and disability — for individuals or couples. Or contact me and we’ll work it out together.