Life Protection
Protecting What Matters Most—With Clarity and Purpose
Life insurance isn’t just about numbers—it’s about protecting the people who rely on you. But how much coverage is enough? That’s where the DIME Method comes in. It’s a simple, structured way to calculate your life insurance needs based on four key areas of financial responsibility.
What Does DIME Stand For?
DIME is an acronym that breaks down your life insurance calculation into four categories:
By adding up these four components, you get a ballpark figure for how much life insurance coverage you should consider.
How to Use the DIME Method
Let’s break it down with a fictional example.
Case Study: David, the Calgary Dad
David is 38, married with two young kids. He wants to make sure his family is financially secure if something happens to him.
Here’s how his DIME calculation looks:
Debt (D):
Credit card balance: $5,000
Car loan: $20,000
Total: $25,000
Income (I):
Annual income: $80,000
Years of support needed: 10
Total: $800,000
Mortgage (M):
Remaining balance: $350,000
Education (E):
Estimated cost per child: $60,000
Two children: $120,000
Total Life Insurance Need = D + I + M + E
= $25,000 + $800,000 + $350,000 + $120,000 = $1,295,000
David decides to round up and purchase a $1.3 million term life insurance policy to cover his family’s needs.
Why the DIME Method Works
It’s comprehensive: Covers both short-term and long-term needs.
It’s personal: Tailored to your actual financial situation.
It’s flexible: You can adjust the numbers as your life changes—new debts, higher income, or more kids.
What to Watch Out For
Don’t forget inflation—education and living costs rise over time.
Revisit your coverage every few years or after major life events.
Consider layering term policies to match different financial timelines (e.g., 10-year for income, 20-year for mortgage).
Final Thought: Insurance Is Love in Action
The DIME Method isn’t just about math—it’s about making sure your loved ones are protected, even if you’re not there to provide for them. It’s a way to turn uncertainty into clarity and fear into peace of mind.
Whether you’re a parent, partner, or provider, using the DIME Method helps you make informed, intentional decisions about life insurance—so your legacy is one of care, not chaos.
