Tool 02 — Finance
How much coverage you actually need
Most rules of thumb say "ten times income" and stop there. That's a starting point, not an answer. This runs the DIME method — debt, income, mortgage, education — which is what an actual planner would walk you through.
Additional coverage to buy
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—
D — Debt
—
I — Income
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M — Mortgage
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E — Education
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| Total need | — |
| Less existing coverage | — |
| Less liquid savings | — |
| Gap to cover | — |
Buy term, not whole life. Term is pure insurance and costs a fraction
of permanent policies. A healthy 35-year-old man can typically get $1M of 20-year term
for somewhere in the $40–70/month range. The same coverage as whole life runs 8–12×
that, and the cash-value "investment" inside it historically underperforms just buying
term and putting the difference in index funds.
Don't lean on employer coverage. Group life through work is usually
1–2× salary — well short of what a family needs — and it disappears the day you change
jobs. Own a policy that belongs to you, not your employer.
Match the term to the obligation. Pick a term that outlasts your
mortgage and your youngest kid's dependence. Once the house is paid and the kids are
grown, the need mostly evaporates — which is exactly why term is the right instrument.
This is an estimate to orient you, not personalised advice. Dadegy isn't a licensed insurance broker or financial advisor. Get quotes from at least three carriers before buying anything.