Life Insurance provides a lump sum payment to your chosen beneficiaries upon your death. In order to decide the amount of cover you require, it helps to consider your own financial position including funeral costs, the balance of your home mortgage and other debts, the cost of your family's lifestyle, the impact the loss of your income will have on the family, the individual needs of family members and the possibility of further financial implications caused by a loss of other family members' income in the months/years following your death.
When considering life insurance, many people think it is only necessary for the principle bread winner in the family to be covered. In fact, only 50% of female parents have life insurance and this is often only a small amount attached to a superannuation policy. However, consider how dramatically life will change if either parent in the family dies prematurely. What changes will need to be made for the care and support of the children? Will the remaining parent's income be temporarily lost or even permanently reduced in order to cater for the needs of the children? Your sudden and early departure from this earth means you cannot be there to support your family through out the tragedy, however you can minimise the stress in the surrounding circumstances by responsibly providing for their financial needs in the foreseeable future.
Life insurance makes sense. It is your final parting gift of love to the ones who matter the most to you.