Life insurance provides financial protection for your loved ones in the event of your death. It's essential if you have dependents who rely on your income, such as a spouse, children, or aging parents who need your financial support.

Term life insurance is typically the best choice for most people. It's affordable and provides substantial coverage for a specific period (10, 20, or 30 years). Whole life insurance combines insurance with investment, but it's much more expensive and often not the best option for most families.

Calculate your coverage needs by considering your annual income, outstanding debts, future expenses like college tuition, and your family's living expenses. A common rule of thumb is 10-12 times your annual income, but your specific needs may vary based on your family situation and financial goals.