Whether you want whole life insurance or term life insurance and how much coverage you need, though, are things that a good life insurance agent should help you determine. Don’t just automatically pick the highest coverage. You’ll pay a lot in premiums and the odds are high that you don’t need that much coverage.

Instead, be realistic about what your family would need if you were no longer there. If you’re the main breadwinner, look at what your salary is. If you stay home and care for the children, how much would daycare cost? These are the kinds of things that are important to address, as well as how many years of salary or costs you would want to cover with your life insurance. If you have a lot of debt, what would it cost to pay it off? Looking at these issues can help you make the right choice.