Understanding Term vs. Whole Life
A comprehensive guide to choosing the right type of life insurance for your family's needs.
Life Insurance Coverage Estimator
Answer a few questions about your circumstances and goals. We'll show you a needs-based estimate alongside a quick rule-of-thumb (DIME) calculation, and rank the policy types most likely to fit. Every input feeds a transparent calculation you can review.
Methodology current as of April 30, 2026
This estimator produces an educational estimate based on the inputs you provide. It is not a quote, not personalized advice, and not a guarantee of insurability or coverage. Approval and pricing are determined by the issuing carrier. For a personalized review, speak with a licensed agent.
1. About you
2. Income & assets
3. Obligations
4. Goals
5. Budget & preferences
Your coverage estimate
Needs-based estimate
$1,046,742
Sums the obligations and goals you listed, applies a present-value discount on income replacement, then subtracts liquid assets and existing coverage.
DIME rule of thumb
$1,555,000
Debt + Income×Years + Mortgage + Education. A quick cross-check, no time-value discount applied.
These two methods often differ. The needs-based number is the personalized estimate; DIME is a sanity check.
Where the needs-based number comes from
| Final expense | $15,000 |
| Other debts | $20,000 |
| Mortgage | $250,000 |
| Education | $160,000 |
| Income replacement (present value) | $626,742 |
| Estate liquidity | $0 |
| Gross need | $1,071,742 |
| Less liquid assets | −$25,000 |
| Less existing coverage | −$0 |
| Net coverage need | $1,046,742 |
| Debt | $20,000 |
| Income × years | $1,125,000 |
| Mortgage | $250,000 |
| Education | $160,000 |
| DIME total | $1,555,000 |
How policy types fit your situation
Ranked by how well each type aligns with your inputs. This is a starting point for a conversation, not a final recommendation.
#1Term Life Insurance
Suggested face amount: $889,731 – $1,203,753 · Suggested term length: 30 yearsAffordable coverage for a specific period — ideal for protecting your family during key financial years such as mortgages or child-rearing.
Why it fits
- You have dependents who would lose your income
- You have a mortgage to protect
- Your age helps lock in a favorable rate
- Your budget can stretch furthest with term
#2Universal Life Insurance
Suggested face amount: $12,000 – $18,000Flexible premiums and adjustable coverage that adapts to your changing life circumstances and financial goals.
Why it fits
- Your growth preference is balanced
#3Children's Life Insurance
Suggested face amount: $10,000 – $25,000Give your child a head start with a policy that builds cash value and may help preserve their future insurability, subject to the issuing carrier's terms.
Why it fits
- You have minor children at home
What to think about
- Child coverage complements, but does not replace, a primary policy on the income earner
#4Whole Life Insurance
Suggested face amount: $12,000 – $18,000Permanent coverage that builds cash value over time. Long-term protection for your family's financial security and legacy.
Refine this estimate with a licensed agent
Submitting this form is a request for information; it is not an application for insurance and does not create coverage. Quotes are estimates and not binding. Approval is determined by the issuing carrier.
These numbers are educational. A licensed agent can validate the assumptions, discuss carrier options, and walk through illustrations for your specific situation.
