Because each individual’s situation is unique, there are many reasons to purchase life insurance. Most young families should consider reviewing their life insurance coverage in order to provide for their children if one or both of the parents pass away prematurely. Many don’t realize that replacing income from a deceased spouse takes a substantial amount in a lump sum. There are many other reasons to consider life insurance, particularly for estate planning purposes.

Life insurance comes in many forms and the cost per dollar of coverage varies significantly based on numerous factors. Term life insurance, especially for younger, healthy adults can be quite inexpensive, so a young couple looking to cover their expenses for 20-30 years can custom-build coverage to their needs for a relatively small amount each month.

The various forms of permanent life insurance cost more than term per unit of coverage, but permanent coverage also has its place in many situations. It’s best to meet with a life insurance professional to review several illustrations that show the benefits and drawbacks of the various forms of life insurance coverage before you purchase a policy. You may also find that rates vary significantly from company to company for very comparable policies.

This is a big decision for your family’s well-being. There is no right or wrong answer; it really must be considered at the individual level. In general, looking at various maturities of term insurance is generally a good idea for a young family seeking affordable coverage until the children are grown. The various forms of permanent insurance are generally well-suited to estate planning or used in combination with term policies to provide “laddered” insurance coverage for a lifetime.