What is DIME Theory?
DIME stands for Debt, Income, Mortgage, and Education—the four key components to consider when determining how much life insurance coverage you need. It’s a simple, straightforward method to ensure your family’s financial security in the event of an unexpected loss.
With DIME Theory, you can calculate exactly how much coverage your family needs.
Here’s the breakdown:
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D: Debt—Add up all outstanding debts. ( credit cards, car loans, personal loans, student loans, other loans )
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I: Income—Multiply your annual income by 10yrs to cover living expenses.
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M: Mortgage—Include your remaining mortgage balance.
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E: Education—Estimate the cost of higher education, averaging $200,000 per child for private colleges.
Now imagine waking up one day to find your world turned upside down by a sudden event. It’s a sobering reminder that life doesn’t always go as planned. In moments like these, your family’s future should be the last thing you need to worry about.
The truth is, many traditional life insurance plans don’t fully account for all financial obligations. They might leave critical gaps that could burden your loved ones, like:
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Unpaid debts (credit cards, loans, etc.)
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Income replacement to maintain your family’s lifestyle
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Mortgage balance to keep the roof over their heads
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Education expenses for your children’s future
Take the First Step
Once you have your DIME number, we’ll work together to create a personalized plan that ensures your family is fully protected. Whether through a Zoom call or an in-person meeting, we’re here to guide you every step of the way.
Protect your loved ones today. Their future is worth it.
Why It Matters
Without the right insurance coverage, your family could face severe financial hardships—struggling to pay for daily expenses, mortgages, and education. On the other hand, having too much coverage means overpaying for protection you don’t need.
Optimize your coverage with DIME Theory:
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Avoid overinsurance and redirect those savings into tax-advantaged retirement accounts earning 6-12% annually.
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Prevent underinsurance by ensuring your family is fully protected, no matter what happens.