Life Insurance Calculator
Two steps. Get a personalized coverage estimate in under a minute.
What's your household income?
Choose 0 if you don't want to factor this in
Coverage estimate
Estimate only. Monthly figures are illustrative — actual premiums vary by age, health, and insurer.
What is the DIME method?
The DIME method is a straightforward formula used by financial advisors across Canada to estimate how much life insurance you need. It stands for:
- Debt — All outstanding debts excluding your mortgage (car loans, credit cards, lines of credit, student loans).
- Income — Your annual income multiplied by the number of years your family would need support. Most advisors recommend 7 to 10 years.
- Mortgage — Your remaining mortgage balance, so your family can stay in their home.
- Education — The estimated cost of post-secondary education for each of your children.
Add these four numbers together, subtract any existing life insurance you already have, and you get a practical estimate of the coverage your family needs.
How accurate is this calculator?
The DIME method provides a reliable starting point, but every family is different. Factors like investment income, a spouse's earning potential, inflation, and specific financial goals can all affect your ideal coverage amount. We recommend using this estimate as a conversation starter with a licensed insurance advisor.
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