Life Insurance Calculator UK

How much life cover do you actually need? Compare the three approaches UK households and advisers use, DIME, the income multiplier, and Capital Needs Analysis, side by side.

Your situation

£

Drives the education component.

£

≈£30k state university, £50k+ independent school, £150k Oxbridge + grad.

Debts & cover

£

Cards, loans, car finance.

£
£

Employer death-in-service + personal policies.

£

Method assumptions

Default 10. Often set to years until the youngest child is independent.

×

Default 10×. Suggested for you: 11×.

£

Annual income the family needs if you die.

%

Income assumed to rise with inflation.

%

Net-of-inflation return on the lump sum.

Recommended cover range

The three methods give a sensible band rather than one "right" number.

Low
£450,000
High
£947,000
Midpoint suggestion
£715,848
Cover gap (after existing cover & savings)
£715,848
Recommended − £0 already in place.

DIME breakdown

Debt (non-mortgage)£12,000
Income (£45,000 × 15 years)£675,000
Mortgage£200,000
Education (2 × £30,000)£60,000
DIME total£947,000
Keep the payout outside your estate. A life policy written in trust usually pays out free of the 40% Inheritance Tax that can otherwise apply, and reaches your family faster (no need to wait for probate). It also costs nothing extra to set up with most UK insurers. See the Inheritance Tax Calculator.

Which method should you use?

DIME (Debt + Income + Mortgage + Education) is the most popular consumer rule of thumb, it adds up concrete liabilities and a block of income. Good for a quick, defensible figure. Go deep on DIME →

Income multiplier (commonly 10×, ranging 7–15×) is the fastest sanity check. It ignores your specific debts but is a useful cross-reference. Go deep on the multiplier →

Capital Needs Analysis is what UK IFAs use: it works out the lump sum needed to fund a target family income for a set period (allowing for inflation and investment return), plus one-off costs. The most tailored, the most inputs. Go deep on CNA →