"How much life insurance do I actually need?" is one of the most common questions we hear — and one of the easiest to get wrong in both directions. Too little coverage leaves real gaps; too much means overpaying for protection that doesn't match your actual situation.

"Konbyen asirans lavi mwen reyèlman bezwen?" se youn nan kesyon nou tande pi souvan — epi youn nan pi fasil pou mal nan tou de direksyon. Twò piti kouvèti kite vrè vid; twò anpil vle di peye twòp pou pwoteksyon ki pa matche ak vrè sitiyasyon ou.

Start With What the Payout Actually Needs to Cover

Kòmanse Ak Sa Peman An Reyèlman Bezwen Kouvri

Rather than picking a round number that sounds substantial, work backward from what your family would actually need to replace or pay off if your income disappeared tomorrow.

Olye chwazi yon nimewo won ki sonn sibstansyèl, travay anrè soti nan sa fanmi ou reyèlman ta bezwen ranplase oswa peye si revni ou ta disparèt demen.

The DIME Method, Explained Simply

Metòd DIME, Eksplike Senpleman

One commonly used framework breaks the calculation into four pieces, easy to remember as DIME:

Yon ankadreman souvan itilize kraze kalkil la an kat moso, fasil pou sonje kòm DIME:

• Debt. Add up everything that would need to be paid off — credit cards, car loans, personal loans, anything beyond the mortgage.
• Dèt. Ajoute tout bagay ki ta bezwen peye — kat kredi, prè machin, prè pèsonèl, nenpòt bagay pi lwen pase ipotèk la.
• Income. Multiply your annual income by the number of years your family would need support — commonly 5 to 10 years, depending on circumstances.
• Revni. Miltipliye revni anyèl ou pa kantite ane fanmi ou ta bezwen sipò — souvan 5 a 10 ane, selon sikonstans.
• Mortgage. Add the remaining balance on your home loan, so your family isn't forced to move due to the loss of income.
• Ipotèk. Ajoute balans ki rete sou prè kay ou, pou fanmi ou pa fòse demenaje akòz pèt revni.
• Education. Estimate the cost of your children's remaining education, if that's a priority for your family.
• Edikasyon. Estime pri edikasyon timoun ou ki rete, si sa se yon priyorite pou fanmi ou.

Add those four numbers together, then subtract existing savings and any current life insurance you already have. What's left is a reasonable starting estimate for additional coverage.

Ajoute kat nimewo sa yo ansanm, epi soustrè epay aktyèl ak nenpòt asirans lavi aktyèl ou deja genyen. Sa ki rete se yon estimasyon depa rezonab pou kouvèti adisyonèl.

A Quick Example

Yon Egzanp Rapid

Say a parent earns $50,000 a year, has $15,000 in non-mortgage debt, owes $180,000 on their home, and wants to cover 10 years of income replacement plus future education costs estimated at $40,000. That's roughly $15,000 + $500,000 + $180,000 + $40,000 = $735,000 — before subtracting any existing savings or coverage. It's a rough estimate, not a precise figure, but it turns an abstract question into a real number to work from.

Disons yon paran touche $50,000 yon ane, gen $15,000 nan dèt ki pa ipotèk, dwe $180,000 sou kay yo, epi vle kouvri 10 ane ranplasman revni plis depans edikasyon fiti estime a $40,000. Sa se apeprè $15,000 + $500,000 + $180,000 + $40,000 = $735,000 — anvan soustrè nenpòt epay oswa kouvèti aktyèl. Se yon estimasyon brit, pa yon chif presi, men li transfòme yon kesyon abstrè an yon vrè nimewo pou travay apati li.

Why Term Life Usually Makes Sense for This Calculation

Poukisa Lavi Tèm Abityèlman Fè Sans Pou Kalkil Sa A

Because the DIME method calculates a temporary need — debts get paid off, kids grow up, mortgages get paid down — term life insurance, which covers a fixed period at a lower cost than permanent insurance, is usually the most efficient way to cover this specific gap. Permanent coverage and strategies like Infinite Banking serve a different, longer-term purpose alongside it.

Paske metòd DIME kalkile yon bezwen tanporè — dèt peye, timoun grandi, ipotèk peye desann — asirans lavi tèm, ki kouvri yon peryòd fiks pou pi ba pri pase asirans pèmanan, abityèlman se fason ki pi efikas pou kouvri vid espesifik sa a. Kouvèti pèmanan ak estrateji tankou Bank Enfini sèvi yon objektif diferan, alontèm akote li.

The exact number matters less than getting in the right range. A rough, honest estimate today is far more useful to your family than a perfect calculation you never got around to making.

Nimewo egzak la enpòtan mwens pase rive nan bon ranje a. Yon estimasyon brit, onèt jodi a pi itil pase yon kalkil pafè ou pa janm rive fè.