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Cowart Insurance Agency Blog

All You Ever Wanted to Know About Insurance

How much Life Insurance do I need?

Many insurance agents use a method called DIME to help clients determine how much life insurance coverage is needed to protect their loved ones. 

Debt – How much would you need to keep your family comfortable with the cost of funeral expenses, the total of all credit card balances, loans, and other debts?

Income Replacement – This calculation should be estimated around 10-15 times your current annual income to protect your family properly.

Mortgage – What is still outstanding on your mortgage loan? Would you need to relocate to a more affordable home?

Education Costs for your Children – How much will the cost of a college education increase in the future?


Example of Life Insurance Calculation – DIME Method




$480,000 ($4,000/month = $48,000/year income replacement x 10)




$80,000 (estimating $20,000/year for a four-year college per child)


$750,000 (estimated coverage protection needed)


States require you to have adequate protection for your cars; you select the best protection for your home, but do you have enough protection for your family and loved ones? Will the life insurance policy you purchased be enough based on the DIME method?

The pain and grief that comes with losing a loved one also come with the burden of financial loss, and life insurance plays an essential role in this. Life insurance benefits can be used to pay off debt and replace the loss of income.

Our agency can offer you a life product with Auto-Owners Life Insurance Company to help protect you and your family. Don’t leave your loved ones unprotected! Remember... your life can change at any time on a “DIME.”