How Much Life Insurance Do You Need?

The DIME formula covers the bases: Debt (all outstanding debts), Income (10x annual income to replace earnings for dependents), Mortgage (remaining balance), Education (cost of college for children). A 35-year-old with a $400k mortgage, $60k income, two kids, and $50k in other debts needs roughly $1.1–1.4 million in coverage. At age 35, a 20-year $1.25 million term policy costs about $55–70/month for a male — less than a car payment. Many people carry only employer-provided group life (usually 1–2x salary) and are massively underinsured.