How to calculate the total benefit you’ll need.
Using the DIME method to calculate how much coverage you need.
(D) – Debt, (I) – Income, (M) – Mortgage, (E) – Education
These are the financial obligations you’ll want to make sure are covered to ensure you are keeping your family’s future secure.
Here is a relatively easy formula you can work with to sort out the level of coverage you may want for a Term life insurance policy.
Total your assets (income and liquid)
Subtract your debts (mortgage, creditors, education etc.)
= Recommended life insurance benefit
The average person should plan for approximately 10x their annual income.