Too little coverage leaves a gap; too much wastes money. The right amount is the one that fully replaces what your family would lose — and it's easy to calculate.
Two ways to find your number
Quick rule: 10–15× your annual income. Fast, but generic.
The DIME method (better): add up your Debt, Income (× years needed), Mortgage, and Education costs, then subtract savings and existing coverage.
Try it in seconds
Our free coverage calculator runs the DIME method for you and shows a personalized recommendation — then lets you compare quotes for that exact amount.
A real example
James earns $90,000, wants 18 years of income protection, has a $300,000 mortgage and $120,000 earmarked for college, with $60,000 saved.
$90,000 × 18 + $300,000 + $120,000 − $60,000 = $1,980,000 → he'd choose $2,000,000 of 20-year term.
Don't forget
- The non-earning spouse's contribution (childcare, household) has real replacement value.
- Match the term length to your need — typically until the mortgage is paid and kids are grown.
- It's fine to round up; the extra coverage usually costs little.
The goal isn't to buy the most insurance — it's to buy exactly enough that money is never your family's problem.