DIME Life Insurance Calculator

Why DIME works (and when it doesn't)

DIME is popular because every component maps to a real, explainable liability: it clears your debts, pays off the mortgage, funds your children's education, and replaces your income for long enough for your family to adjust. That makes it easy to justify and quick to calculate.

When DIME overshoots: if your mortgage is small or nearly repaid, or your children are close to independence, DIME can suggest more than the family realistically needs. It also ignores assets you already hold and any State support such as Bereavement Support Payment.

When DIME undershoots: it replaces income for a fixed number of years with no allowance for inflation or investment return, so for a long replacement period the Capital Needs Analysis method is more precise. It also excludes ongoing childcare costs, which can exceed the education figure for under-5s.

Use DIME for a fast, defensible number, then cross-check it against the income-multiplier rule and a full capital-needs model.

Educational guide only, not financial advice. Consider writing any policy in trust to keep the payout outside your estate for Inheritance Tax.