commonly asked questions

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Great question—it depends on your financial situation, goals, and who you’re protecting. Let’s break it down step by step so you can calculate it rather than guessing:

• Spouse/partner
• Children or others who rely on your income
• Debts or obligations you’d want covered

Here’s a simple formula often used (called the DIME method):

• D – Debt: Mortgage, loans, credit cards, etc.
• I – Income replacement: How many years would your family need your income? (Multiply your annual income × number of years.)
• M – Mortgage: If not already included under debt, add the full balance.
• E – Education: Future college or tuition costs for kids.

Take away:

• Current life insurance through work
• Savings or investments your family could use
• Other assets (rental property, etc.)

• Do you want to leave an inheritance or charity gift?
• Will your spouse need retirement income beyond your working years?

Quick shortcut (if you want a ballpark number):
Most financial planners suggest 10–15× your annual income as a starting point, but this doesn’t account for debts or special plans.