If you are raising kids and are looking at life coverage options, term life insurance is normally the most practical & effective option to provide the needed protection at an affordable price. The primary purpose of life insurance is to protect the ones you love that are financially dependent on you and normally term life coverage easily accomplishes this. Term life has a level premium for a fixed number of years along with level death benefit. The coverage is significantly less expensive than a permanent plan (coverage that would run the entire life of the insured) and so an applicant can then afford the adequate coverage to protect their kids/family if something were to happen. Both Dave Ramsey & Suze Orman advocate term life and recommend between 8-20x an insured’s annual earnings, essentially replacing a breadwinner’s income. Coverage can last as long as 40 years, but the most common purchase is a 20-year plan, which can protect the most financially vulnerable years of a family. Many plans also allow an insured to convert to permanent coverage at a later date so that if health issues arise making an insured no longer eligible for new coverage they can at least stretch out their current plan.
All life coverage is based off age and health, so the younger and healthier applicants are the lower the price could be. A healthy 40-year-old male could get a $500,000 / 20 year plan for as low as just $26/month! The key with life coverage, as with most insurance plans, is to pick up a policy before you need it. If you are proactive you can get an excellent rate. If you wait until a medical diagnosis you may no longer be eligible.