The DIME method
DIME stands for Debt + Income + Mortgage + Education. Add: all outstanding non-mortgage debts, 10× annual income, remaining mortgage balance, and projected education costs for each child. Subtract liquid savings and existing coverage. The result is your coverage gap — what your family would need if you died tomorrow.
Why term beats whole life for most people
Term life is pure insurance: pay a fixed premium for a set period (10/20/30 years); if you die, beneficiaries get the death benefit tax-free. Whole life bundles insurance with a slow-growing cash-value account, costing 10–15× more in premium. For most households, the better strategy is to buy term and invest the difference — you'll typically build more wealth and need less insurance by retirement anyway.
When to buy and how long to lock in
Premiums rise sharply with age and any health diagnosis. Lock in coverage as soon as anyone depends on your income. Match term length to your obligation horizon — typically until your youngest child finishes college and your mortgage is paid.