Buying life insurance based on an arbitrary rule of thumb often leaves families underinsured or paying for excess coverage. Two recognized methods calculate exact coverage needs.
The Human Life Value approach was developed by Solomon S. Huebner, who also founded the American College of Life Underwriters. This method measures total net earning power lost over a working career.
The DIME framework offers a practical alternative. Add your outstanding Debt, Income replacement needs, Mortgage balance, and anticipated Education costs for dependents.
Subtract existing liquid assets and current coverage from your DIME total to find your true insurance gap.
How many times your annual income is your current life insurance policy, if you have one?
