Estimate how much life cover you need with a simple needs analysis.
Calculated locally in your browser.
How much life insurance coverage do you need?
Cover ≈ (income × years) + mortgage + other debts + future costs − existing savings and cover — the DIME approach (Debt, Income, Mortgage, Education). For example, 50,000 income × 10 years + 200,000 mortgage + 20,000 debts + 80,000 education − 50,000 existing = 750,000. This is a guideline, not advice.
Understanding your result
This is a guideline. Your real need depends on dependants, inflation, other income and the policy type. Treat it as a starting point, not advice.
Formula and method
Cover ≈ (income × years) + mortgage + other debts + future costs − existing savings and cover. This is the DIME approach (Debt, Income, Mortgage, Education).
Assumptions and limitations
The figure is a general estimate from the DIME needs-analysis method, not financial or professional advice. It cannot weigh inflation, policy type, tax or your full circumstances, and real needs vary widely. Treat it as a starting point and confirm any decision with a qualified adviser.
Worked example
50,000 income × 10 years + 200,000 mortgage + 20,000 debts + 80,000 education − 50,000 existing = 750,000 recommended cover.
How to use this tool
- Enter the annual income to replace and for how many years.
- Add the mortgage, other debts and future costs (e.g. education).
- Subtract existing savings and cover, then Calculate.
Common mistakes to avoid
- Forgetting to subtract existing cover and savings.
- Ignoring inflation over a long replacement period.
About the Life Insurance Calculator
Work out a sensible life-insurance sum assured using a needs analysis: replace lost income, clear the mortgage and debts, fund future costs, then subtract what you already have.
Who should use this tool
Anyone with dependants, a mortgage or debts who wants a private, ballpark figure for how much cover to consider before speaking to a broker or adviser. Useful when reviewing an existing policy after a life change such as a new child, home or job.
Benefits
- Turns a few numbers into a sensible starting sum assured
- Follows the recognised DIME needs-analysis approach
- Runs privately in your browser with no account
- Free to use for quick what-if reviews
Practical use cases
- Sizing cover before requesting quotes from insurers
- Reviewing whether an existing policy still fits
- Preparing questions ahead of an adviser meeting
- Seeing how a mortgage or child changes the number
Frequently asked questions
Is this financial advice?
No. It is an educational estimate; consult a licensed adviser for a personalised recommendation.
What does the DIME method actually add up?
DIME stands for Debt, Income, Mortgage and Education. The tool adds your outstanding debts, several years of income to replace, your remaining mortgage and future costs such as education, then subtracts savings and any cover you already hold. The remainder is a guideline figure for the gap you might insure.
How many years of income should I replace?
There is no single correct number; it depends on how long your dependants would rely on your earnings. Many people choose a span reaching until children are independent or a mortgage is cleared. The tool lets you set the years so you can test different assumptions and see the effect.