A practical starting point for calculating life insurance needs is the DIME method: Debt (all outstanding debts), Income (annual income multiplied by the number of years your dependents need support), Mortgage (payoff balance), and Education (projected costs for children). Common rules of thumb — 10–15 times annual income — are useful but imprecise. The most accurate approach models your family’s actual expenses, income replacement timeline, and existing assets, ideally with a financial advisor.