People often avoid buying online life insurance because it, like writing a will, forces us to think about our own death. But, especially if you are the breadwinner, life insurance is an important part of an overall financial plan, since it ensures that your family is taken care of should something happen to you. There are basically two types.

Term life insurance is the first type. This is the type you most likely have through your employer. As long as you pay the premiums, you’re insured for the face value of the policy. Premiums go up as you get older, but the payout does not.

The next type of life insurance is whole life. This type of policy increases in value as you pay into it, and has level premiums throughout its life. The value of the policy goes up and you can even withdraw some of the value before your death, such as to use in a downpayment on a house or to pay for college. This policy allows you to see benefit even before your death.

Often, life insurance companies will offer different forms of both basic types and can customize a policy for you.

Determining the dollar amount of life insurance you need can be the most difficult aspect of life insurance planning.

The primary breadwinner in the family should consider how the spouse could pay bills in the event of their death. Some families choose term life insurance with the value of a year’s salary. Others choose life insurance in the value of their home mortgage, thinking that the secondary income would be enough if the mortgage were paid off.

If one spouse stays at home, many families think they don’t need to insure this spouse. However, you should consider the cost to pay someone to perform the tasks that the stay at home spouse performs, such as child care, house cleaning and cooking.

Every few years, you should take a look at your life insurance coverage to make certain that it still meets your needs. When you’re single, you may need little or no coverage, but during the years of raising a family, you’ll need significant coverage. Your needs will decrease again when your children are grown and when your mortgage is paid in full.

Online life insurance is an important part of your financial plan, and it takes much consideration. Think about the coverage your family needs, and then work with your agent to come up with a life insurance policy that gives your family peace of mind.