How much Life Insurance do I actually need?

Is one of the “most” asked questions in regards to life insurance planning. In reality, it depends on many factors. Here is a simple “needs analysis” you can perform to give you an Idea.

DIME method

D - Debts (Credit cards, Personal Loans, or any other personal debts)

I - Income (Take your earned income and multiply that by the amount of years you see neccessary. ($80,000 yearly x 10 years = $800,000

M - Mortgage (Add remaining balance)

E - Education for children (estimate college costs)

Once you have gathered these numbers you add them together and this should give you an idea of how much coverage is actually neccessary.