Buying Life Insurance

You buy life insurance so that your death will not burden your loved ones financially — house payments will be made, groceries will be on the table, and college dreams can be realized.

Keep these pointers in mind as you buy life insurance:

If both you and your spouse work, then cover both incomes.
Cover the homemaker for the amount you would need to hire an outside service to perform the homemaker's functions.
Buy coverage of at least 6 to 7.5 times your current income. Add to this amount for final expenses and college costs.
Buy term life insurance, in most cases. Buy cash-value permanent insurance only if your need is permanent.