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When you have dependents, you may also need life insurance protection. The question to ask yourself and your family is how they’d fare financially if you died and they no longer had your income. If your family is dependent on your income and you want them to be able to maintain their current standard of living in your absence, you need life insurance.

Term life insurance, like most other forms of insurance, is pure insurance protection and is the best type of insurance for the vast majority of people. The amount of coverage you buy should be based upon how many years’ worth of your income you desire to provide your family in the event of your passing.

Insurance brokers love to sell cash-value life insurance (also known as whole or universal life insurance) because of the hefty commissions they can earn by selling this type of insurance. (These commissions, of course, come out of your pocket.) Some mortgage lenders lobby you to buy the mortgage life insurance that they sell. Skip both these options. Mortgage life insurance is simply overpriced term insurance, and cash-value life insurance generally combines overpriced life insurance with a relatively low-return investment account.