The DIME Method
Apr 19, 2017
3. Portugal is entirely powered by renewable energy for four days
Prices in popular emerging market debt and equity benchmarks have already fallen, while net inflows from overseas investors have dropped from $285bn in 2014 to $66bn this year, according to the Institute for International Finance, a group representing the world’s largest financial companies.
Debt: Add up any of their outstanding debts and future funeral expenses.
Income: Figure out how many years their family would need financial support. Take that number and multiply it by their income. We prefer this method because the rule of 10 can be limiting. Some families would require financial support for longer than 10 years. This way, you are customizing their coverage based on their family's specific needs.
Mortgage: Add the amount they still owe on their mortgage.
Education: Calculate the amount of money it would cost to provide their children with higher education. Keep in mind, this doesn’t just mean tuition. Do not forget to include cost of books, housing, and meal plans.