September is the month when the focus turns to a topic that most people don’t want to talk about or even think about: life insurance. September is Life Insurance Awareness Month (LIAM). It’s a national campaign designed to draw attention to the fact that many people have no or inadequate amounts of life insurance which could have serious and long-lasting consequences for their families.

One of the methods I use to calculate if you have enough life insurance is what is called the DIME method.

D= Death Benefit ( or cost of a funeral, cremation, etc).

I= Income- what do you need to replace if your significant other is lost.

M= Mortgage- how much do you owe on your home.

E= Education- the cost to send your kids to school.

For example…

D- $10,000 for a funeral they run between $5000-$20,000 depending on what you are doing, but for simplicity, we will use this number.

I- need to replace an income of $40,000 per year.

M- I owe $100,000 on my home

E- Two kids in college assuming $15,000 per year for tuition is $120,000.

Under this example, if we were just trying to figure out how to have an income of the spouse replaced for just ONE YEAR, we would need a minimum of $310,000, in life insurance.

This just gives you a guide to see if you might have enough insurance.  Talk to your financial advisor or your insurance agent to discuss your future.  Your loved ones are counting on it.

Eric Wilson is President of I Sell Health, Inc.  A Chicago area full-service insurance agency.  He can be reached toll-free at 888-448-5370 or online @

Thanks for reading!

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