Too little life insurance and your family still can't pay the mortgage. Too much and you're burning premium you could invest elsewhere. The right number isn't a guess, it's the output of one of three simple formulas, depending on whether you're protecting income, debts, or a legacy.

Independent carriers let us price multiple coverage levels side by side so clients pick the right number, not the one a single carrier wants to sell.

The 10x Income Rule (The Quick One)

The fastest sanity check: multiply your annual gross income by 10, then add $100,000 per child for education. It's directional and useful for a first estimate, but it's usually too low for high earners with multiple dependents or large mortgages.

The DIME Method (More Precise)

DIME forces you to look at the four obligations your death benefit has to cover:

• Debt, credit cards, student loans, car loans, personal loans

• Income, years of income replacement your family needs

• Mortgage, remaining balance on your home

• Education, projected cost to put each child through college

Worked example

Debt $20,000 + Income ($75,000 × 10 years = $750,000) + Mortgage $250,000 + Education ($100,000 × 2 kids = $200,000) = $1.22 million of coverage.

Stop guessing, know the number. A licensed advisor walks you through DIME or HLV and gives you a specific coverage amount. Get a coverage estimate in under 15 minutes.

The Human Life Value Method (Most Accurate)

Human Life Value calculates the present value of your future earnings to age 65 to 67. It accounts for projected raises, inflation, and savings. So it tracks the real economic loss your family faces. Best for high earners and complex estates, and usually calculated by an advisor.

Coverage-Level Shortcuts by Life Stage

Young, no kids, mortgage only

5 to 10x income, or mortgage balance + $50,000 for final expenses.

Parents with young kids

Run the DIME calculation and err high. Early family years are when your death benefit has to carry the longest.

Parents with older kids in college

Re evaluate every 5 years. As debts shrink and kids launch, the required number usually drops.

Empty-nesters with paid-off home

Coverage for final expenses plus any remaining dependents and estate liquidity. Permanent life may replace term here.

Round up, not down: Life insurance is cheapest when you're young and healthy. Buying $100K more than your formula suggests usually costs $5 to $10/month extra. Trivial insurance for substantial protection.

What People Get Wrong

The most common mistakes we see:

• Buying a $500K round number because it sounds right, not because it fits their actual obligations

• Forgetting a stay at home parent, childcare alone is $20,000+/year

• Relying only on employer coverage, it disappears the day the job does

• Not increasing coverage after a new mortgage or new child

• Assuming Social Security survivor benefits will cover the gap, they usually won't

Real example: A 35 year old father earning $80K, with a $250K mortgage and two kids, usually needs $1M to $1.5M of coverage. A 20 year term runs roughly $30 to $50/month. Less than a monthly streaming bundle.

Had a baby, bought a house, or got married in the last year? Your coverage needs probably just doubled. Talk to a OnePoint advisor or call 888-899-8117 for a quick recalculation.

Frequently Asked Questions

Should I include my spouse's income?

Only if their income alone can carry the family. For most dual income households, you need coverage on both earners.

Does my employer's policy count?

Partially. It's useful but tied to the job. Most advisors say don't rely on employer coverage as your primary; treat it as a supplement.

How do I insure a stay-at-home parent?

Calculate the cost to replace their labor: childcare, housekeeping, transportation, meal prep. Usually $50,000 to $75,000+ per year.

Can I have too much life insurance?

Yes. Underwriters cap coverage at what's financially justifiable (usually 20 to 30x income). Beyond that, you can't qualify.

Should I buy one policy or stack several?

Stacking shorter terms (laddering) can be cheaper: a 30 year plus a 10 year covers both mortgage and peak family years without paying for coverage you don't need at year 25.

How OnePoint Can Help

As an independent agency, we run DIME and Human Life Value side by side, then price the resulting coverage across multiple top rated carriers. You see the real number and the real cost before you commit.

Want to see what your rate could be? Get a personalized life coverage estimate, or talk to a licensed advisor and we'll walk through it together.

Get the number right

Stop guessing. Know exactly how much coverage you need.

Every formula points to the same answer: most American families are 30 to 50% underinsured. A quick conversation with a licensed OnePoint advisor walks through DIME or Human Life Value and gives you a specific number, with a matching price from multiple carriers.

Get a Free Life Quote | Call 888-899-8117