What is the DIME method?
DIME stands for Debt, Income, Mortgage, Education — the four buckets of financial obligations your life insurance should cover. Add them up, subtract what you already have (savings, group life, RESPs, CPP survivor benefits), and the remaining gap is how much coverage you need.
Why this calculator is different
Most life insurance calculators are built for the American market. This one factors in CPP survivor benefits (up to $804/month for a surviving spouse + $308/month per child), provincial funeral cost averages, and RESP balances — details that meaningfully change your coverage gap. A Canadian family can often reduce their target by $100,000–$170,000 just from CPP alone.
Term vs whole life
For the vast majority of Canadians, term life insurance is the right product. It’s 5–10× cheaper than whole life and covers the critical years when your family is most financially vulnerable. The coverage gap from this calculator is best matched with a term policy whose length matches your longest financial obligation (mortgage payoff, youngest child’s independence).
What this calculator doesn’t do
This is a needs estimate, not a quote. Actual premiums depend on your age, health, smoking status and the insurer. Use this number to know how much coverage to ask for, then get quotes from an independent broker who can shop across 15+ Canadian insurers.