A fast, honest starting point for sizing coverage at the table. DIME adds up the four things life insurance is meant to cover, then subtracts what the family already has in place. Fill it in and the total updates as you go.
D
Debt
Credit cards, car loans, personal and other debts (not the mortgage)
$
I
Income
Annual income to replace, multiplied by the years the family needs it
$
M
Mortgage
Remaining balance on the home
$
E
Education
Expected future education costs for children
$
Total need (D + I + M + E)
$0
Less: existing coverage and liquid assets
Current life insurance plus savings available for these needs
$
Estimated coverage need
$0
Using it well
For income, a common starting point is annual income times the years until the youngest child is independent, or until a surviving spouse reaches retirement.
If the total comes out negative, the family is already covered for these needs. That is a finding worth sharing, not a failed sale.
This sizes the need. The right product and term length is the next conversation.
Training aid and estimate, not financial advice. DIME is a starting framework, not a complete financial plan. Final recommendations should reflect the client's full situation. Figures entered here are not saved.
TrustInsure is a licensed health insurance agency and is not affiliated with any government agency.