Tools Life & Income Protection Gap Calculator
How much life insurance protection are you missing?
Estimate your DIME protection need from debt, income, mortgage and education, then subtract insurance and liquid savings.
Your result
- Coverage gap
- Total protection need
- Current insurance and liquid savings
Keep this result beside the assessment. Complete its questions to update your score.
How this tool works
DIME need = non-mortgage debt + mortgage + annual income × replacement years + education per child × dependents. Resources = existing life insurance + liquid savings. The gap is max(0, need − resources). Coverage includes both insurance and savings. This simplified estimate excludes inflation, investment returns, final expenses, taxes and survivor benefits. It estimates life insurance needs, not disability income coverage. Only include savings truly available to survivors, and review employer coverage portability.
Common questions
What does DIME stand for?
DIME means Debt, Income, Mortgage and Education. Add those needs, then subtract existing life insurance and liquid savings available to survivors.
Can my insurance gap be negative?
No. The gap is floored at zero when your resources meet or exceed estimated need. This does not prove that your policies fit every risk.
Does this calculate disability insurance needs?
No. Income replacement here estimates a lump sum for survivors after death. Disability coverage requires a separate review of monthly expenses, benefits and waiting periods.
Sources
- How much life insurance do I need?, Insurance Information Institute
- Life Insurance, National Association of Insurance Commissioners
This tool is for informational and educational purposes only. It is not financial, tax, or legal advice. Consult a qualified professional for guidance specific to your situation.