Life Insurance When You Have Children

Life insurance has many applications. But its most important purpose is protecting children against the untimely death of a parent.

Here are seven life insurance principles for parents:

1. Buy enough

When you have young children, you probably need a lot of life insurance. The goal: Have enough life coverage to replace your own income (or that of a breadwinner spouse) until the children reach adulthood, plus college funding.

A basic rule of thumb for young parents is 15 to 30 times your income.

You may want more insurance if: Life Insurance When You Have Children