Insurance
Cover needed
Subtracts cover and cash the family already has.
The Formula
Need = DIME - existing cover - savings
Subtracts cover and cash the family already has.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| X | Existing cover | currency | Life cover already in force. |
| S | Savings | currency | Liquid savings available. |
What Each Symbol Means
Xcurrency
Existing cover
Life cover already in force.
Scurrency
Savings
Liquid savings available.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate life insurance needs page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Life Insurance Needs, filed under Finance. Every number the guide produces comes from substituting into this one line.