Life Insurance Needs: $100k Income, 20 Years, $400k Mortgage
Calculate how much life insurance you need earning $100,000 per year with a $400,000 mortgage and 20 years of income to replace.
How to use this tool
- Enter your non-mortgage debt and your mortgage balance.
- Enter the annual income you want to replace and for how many years.
- Add expected education costs for your children.
- Subtract coverage and savings you already have to see your remaining gap.
This DIME calculator estimates life insurance coverage for a $100,000-a-year earner with a $400,000 mortgage balance and 20 years of income replacement.
Frequently asked questions
- How much life insurance do I really need?
- There is no single answer, but the DIME method gives a defensible estimate by covering your debt, several years of income, your mortgage, and your children's education, minus what you already have. Many families land between 7x and 10x annual income.
- Should I include my employer's group life policy?
- Yes — count it under existing coverage. Group policies often end when you leave the job, so treat them as a temporary offset rather than a permanent solution.
- Does DIME account for inflation or investment growth?
- No. This consumer version uses a straight income multiple, which slightly over-estimates the need and so builds in a small safety margin. A discounted human-life-value model is more precise if you want to factor in returns on the payout.