Term Life Insurance Calculator

Calculate term life insurance need using 10× income or DIME method (Debt, Income, Mortgage, Education). Most US adults underinsured. Methodology and assumptions documented below; sources cited.

10× Income vs DIME

The 10× income rule is quick: 10 × annual income. The DIME method is precise: Debt + Income (years to replace) + Mortgage + Education. For most middle-income households with kids and mortgage, DIME gives 30-50% higher number — and is more accurate to actual need.

Term vs Whole Life

Term life: pure death benefit for 10-30 year period, $30-50/mo for $500k at age 35 nonsmoker. Whole life: combines death benefit + cash value, $300-500/mo for same coverage. Term wins 95% of the time mathematically — invest the $250-450/mo difference in index funds for far greater outcome than whole-life cash value growth (typically 2-4% inside policy after fees).

When to Buy and Update

Buy term life within 30 days of any major life event: marriage, first child, mortgage. Re-evaluate every 5 years and at each subsequent child. Re-shop quotes if you have lost weight, quit smoking, or improved health — better health class can drop premium 20-40%. Lock in 20-30 year term to outlive children's dependency.

Last updated May 2026. Sources: NAIC Life Insurance, III Life Insurance Basics.