Who this is for
Anyone with people who depend on their income, a mortgage that would outlive them, or a business partner who would be left holding a loan. If nobody is financially dependent on you, you probably do not need it yet, and we will say so.
What it typically covers
Term life. A fixed number of years at a fixed premium. Cheapest per dollar of coverage, and what most families should buy.
Permanent life. Whole and universal policies that do not expire and build cash value, at several times the premium.
Riders. Waiver of premium, child riders, and accelerated death benefit for terminal illness.
Conversion. The option on most term policies to switch to permanent later without a new medical exam.
Group top-up. Coverage above what your employer provides, which usually ends when the job does.
What it usually doesn’t cover
Death by suicide within the first two policy years, in almost every contract
Anything not disclosed on the application, if it surfaces during the contestability period
Some hazardous occupations and hobbies, unless declared and rated
Death in a country under a travel advisory, on certain contracts
Lapsed coverage, which is the most common way a life policy fails to pay
How much, in one paragraph
A common starting point is ten times income, plus the mortgage balance, plus an allowance per child for education, less what is already covered by group life and savings. That is a rough frame rather than a rule. The number that matters is what would keep the household running for as long as it needs to.
How we’d approach it
We run the same face amount and term across our life carriers, because underwriting differences between them are wider here than in any other line. A health condition one carrier surcharges heavily, another prices at standard. That spread is the whole reason to use a broker for life.