Life insurance isn’t for those who have died—it’s for those who are left behind. When shopping for life insurance, needs such as replacing income so your family can maintain its standard of living and paying for funeral and estate costs must be considered. 

As a rule of thumb, you should seek coverage between seven and ten times your gross annual income. Life insurance policies come in two basic categories: Term and Permanent.

Term insurance generally provides coverage for a specified period of time and pays out a specified amount to your beneficiary only if you die within that time period. In a level premium term policy, you pay the same amount of premium from the first day of the policy until the term ends.

Permanent insurance will stay in effect for the rest of your life so long as premiums continue to be paid.