The main purpose of life insurance is to provide a financial safety net for your loved ones. If something happens to you while your policy is active, your beneficiaries receive a cash payout, known as the ‘death benefit.’

You decide how much coverage you need based on what you want the payout to cover—whether it’s final expenses, replacing your income to support your family, covering care for a dependent with special needs, paying off debts, or funding your kids’ college education.

Choosing to buy life insurance is a personal decision. If you have debts like student loans, life insurance can help ensure those are covered, along with funeral costs—which can run between $5,000 and $10,000 in the U.S.

One smart move? Getting life insurance while you’re young. It’s typically more affordable when you’re young and healthy, and the longer you wait, the more it can cost.

There are plenty of reasons for both spouses to have life insurance.

If your household relies on two incomes, losing one could create serious financial strain on top of the emotional loss. And if you have kids, that pressure can feel even heavier.

Even if your spouse isn’t currently working, they might need to if something happens to you. Plus, they could face new expenses like child care or managing the household alone.

Life insurance offers immediate financial stability and can help with long-term goals like covering college tuition for your kids.

The amount of life insurance you need depends on your unique situation, but chances are, the coverage you get automatically through your employer—often equal to one year’s salary—probably isn’t enough.

If you’re young and don’t have dependents, one year’s salary might cover funeral costs and some debts.

But if you’re supporting a family that relies on your income, you’ll likely need a lot more coverage to ensure they can maintain their lifestyle.

Final expense insurance can help cover a number of expenses after you’re gone, including funeral costs. Your beneficiaries will work with your policy’s insurance company after your death to receive the payout.

If you aren’t concerned that your age or health will play a factor in your ability to obtain insurance, a traditional term life insurance policy should be your first life insurance consideration. It’s the most cost-effective way to cover burial expenses in addition to any other expenses your loved ones may have.

The main differences between final expense insurance and traditional term or whole life insurance are the processes of securing it and the amount of coverage available per type of policy. Final expense insurance does not require a medical exam, but in turn, your coverage amount is more limited.

Final expense insurance could be a good fit for seniors or if you have an illness. No medical exam is required in many cases; only a health questionnaire to help determine your coverage plan and premium. Once you’ve selected your coverage plan, your premium never increases—even if your health decreases.

Burial insurance is a good idea even if you have traditional life insurance or savings. The additional coverage affords you an assurance that your beneficiaries will be able to take care of your final expenses.