Life Insurance Calculator
DIME is a simple checklist for how much life insurance to carry: debts, income, mortgage and education. Add them up and subtract what you already have.
Results
Additional cover needed
₹1,46,00,000
- Total need (DIME)
- ₹1,86,00,000
- D: Debt
- ₹8,00,000
- I: Income
- ₹1,20,00,000
- M: Mortgage
- ₹35,00,000
- E: Education
- ₹20,00,000
- Final expenses
- ₹3,00,000
- Existing cover and assets
- ₹40,00,000
The DIME method gives a total need of ₹1,86,00,000. After ₹40,00,000 of existing cover and assets, you need about ₹1,46,00,000 of additional life cover.
What the cover would pay for
- Income for your family₹1,20,00,000 (64.5%)
- Debts and mortgage₹43,00,000 (23.1%)
- Education and final costs₹23,00,000 (12.4%)
Show the calculation steps
- D (debt) = ₹8,00,000; I (income) = ₹12,00,000 × 10 years = ₹1,20,00,000; M (mortgage) = ₹35,00,000; E (education) = ₹20,00,000.
- Plus final expenses of ₹3,00,000: total need = ₹1,86,00,000.
- Less existing life cover ₹30,00,000 and assets you could use ₹10,00,000: additional cover = ₹1,46,00,000.
- DIME stands for debt, income, mortgage and education. It is a rule of thumb: adjust the number of income years to your family's situation.
The four parts
Debt covers loans other than your mortgage. Income covers a number of years of your salary for your family. Mortgage pays off your home loan. Education funds your children's schooling. Final expenses cover the immediate costs after a death.
Choosing the years of income
Ten years is common, but a young family with small children may need more, while a family with grown children needs less. Increase the number of years to see the effect.
Formula
Total need = Debt + (Income × years) + Mortgage + Education + Final expenses
Additional cover = Total need − existing cover − assets
Where:
- D
- = Debts other than the mortgage
- I
- = Annual income times the years to replace
- M
- = Mortgage balance
- E
- = Cost of children's education
Example calculation
₹12 lakh income, 10 years replaced, ₹35 lakh home loan
Inputs
- Debt (Excluding Home Loan)
- ₹8,00,000
- Annual Income
- ₹12,00,000
- Years of Income to Replace
- 10 years
- Home Loan Balance
- ₹35,00,000
- Children's Education Costs
- ₹20,00,000
- Final Expenses
- ₹3,00,000
- Existing Life Cover
- ₹30,00,000
- Savings and Investments You Can Use
- ₹10,00,000
Result
- Additional cover needed
- ₹1,46,00,000
- Total need (DIME)
- ₹1,86,00,000
- D: Debt
- ₹8,00,000
- I: Income
- ₹1,20,00,000
- M: Mortgage
- ₹35,00,000
- E: Education
- ₹20,00,000
- Final expenses
- ₹3,00,000
- Existing cover and assets
- ₹40,00,000
Step-by-step
- D (debt) = ₹8,00,000; I (income) = ₹12,00,000 × 10 years = ₹1,20,00,000; M (mortgage) = ₹35,00,000; E (education) = ₹20,00,000.
- Plus final expenses of ₹3,00,000: total need = ₹1,86,00,000.
- Less existing life cover ₹30,00,000 and assets you could use ₹10,00,000: additional cover = ₹1,46,00,000.
Important notes
- This is a planning estimate, not a recommendation to buy a specific policy. Insurers assess income, age and health, and you should compare policies and read the terms.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
What is the DIME method?
A way to estimate life insurance: Debt + Income + Mortgage + Education.
Should I include my spouse's income?
You can reduce the income years if your spouse earns enough to cover part of your family's costs.
Is it accurate?
It is a rule of thumb. The term insurance calculator gives a more detailed income-replacement estimate.
Related calculators
- Term Insurance CalculatorEstimate how much term insurance cover your family needs to replace your income until retirement and repay your debts.
- Insurance Requirement CalculatorAdd up your family's living costs, education goals and debts to find the total life insurance requirement.
- Health Insurance Coverage CalculatorEstimate the health insurance cover you may need from local treatment costs, and see how medical inflation raises it.
- Human Life Value CalculatorCalculate your human life value: the present value of the future income you provide to your family, and the extra cover it implies.
Explore more in Insurance Calculators.