Getting married, welcoming kids and starting a business are some reasons you might be thinking about life insurance.
Life is full of life-changing moments. Moving to a different city, starting a new job, becoming a first-time parent (or grandparent). But it’s also full of uncertainty — and how long we have left to enjoy life’s many milestones is one of those uncertainties.

That’s where life insurance comes in. The payout from a policy can help ease the financial burden on loved ones when the inevitable happens. And contrary to popular belief, life insurance is probably not as expensive as you think, especially if you’re young and healthy. For a 40-year-old in the market for a 20-year, $500,000 term life policy, the average cost of life insurance is just $26 a month, according to Covr Financial Technologies, a life insurance brokerage.

While having life insurance is important when anyone depends on you financially, that need becomes magnified during pivotal moments in life. If you experience any of these milestones, it may be time to evaluate your life insurance needs.

Getting married

When two people commit to each other, they often share finances and future ambitions, too. But if one spouse dies unexpectedly, that person’s loss of income and other household contributions can leave a sizable gap for the other to fill.

Life insurance can help a surviving spouse maintain their lifestyle while they’re grieving and beyond, says Lemar Williams, a certified financial planner and president of Traditions Wealth & Legacy Planning. This is true even if the spouse who’s died is not the primary earner.

For example, a stay-at-home spouse might not bring home a paycheck, but they might perform valuable household duties, such as caring for kids, cleaning the house and maintaining the yard. Life insurance can help a working spouse cover these costs if their partner passes during prime working years.

Welcoming kids

Raising kids isn’t cheap. The estimated cost of raising a child born in 2015 through age 17 is $233,610 for a middle-income family, according to the latest data from the United States Department of Agriculture. In 2024 dollars, that equates to roughly $310,303. On top of these higher costs, more young adults are choosing to live with their parents longer than previous generations.

For many parents, life insurance can provide a financial safety net for their children if they die unexpectedly. Permanent life insurance can also offer lifetime financial support for a child with a disability.

Buying a home or going to school

As you move through life, you collect memories — and, in some cases, debt. Life insurance can provide the means for a loved one to continue making payments for a shared debt when you’re gone, like a home mortgage, home equity loan, or private student loan.

Starting a new job

Joining a different company? If you had group life insurance from your previous job, this type of coverage typically isn’t portable, so it’s worth looking into buying a policy on your own.

Other times, a new job means getting a pay raise. That bump in pay might translate to a bump in your standard of living, and life insurance can help your loved ones maintain their new standard of living in the event you die early.

Creating a business

Being your own boss can be rewarding. But it can also put your family, business partners and employees in a tough spot if you pass unexpectedly.

Business owners are often so focused on growing their business that they forget about the risk of something happening to them, says Williams. Life insurance for small business owners can provide the resources a surviving family member or business partner may need to keep the lights on, find a buyer, pay outstanding business loans and more.

Becoming the primary caregiver for an aging family member

Life expectancy in the U.S. is now 78 years, according to the Centers for Disease Control and Prevention. If a parent, in-law or other family member doesn’t have enough money to get themselves through their golden years, you may have to step in to help — physically and financially — says Daniel Adams, a certified financial planner and president of CEG Life Insurance Services.

If you pass away, that could leave your family member struggling to find care. Life insurance can help pay long-term care costs or other medical and everyday expenses, Adams says.

How much life insurance should you get?

Many companies offer term life insurance policies with death benefits starting at $100,000 and potentially reaching into the millions.

A good starting point for finding the right amount of coverage for you is to think of everything you pay for now and can expect to pay for in the future, like a mortgage or college tuition. Then, subtract your savings and the value of assets you currently own. The dollar figure you’re left with is where life insurance can help with your family’s financial obligations when you’re gone.

Williams recommends working with a certified financial planner or chartered life underwriter if you need more guidance. You can also use NerdWallet’s life insurance calculator to estimate how much coverage you might need.