A guide to life insurance at different stages of life: How do young people, new parents, and middle-aged people make choices?

For many new parents, buying life insurance is a must. Protecting their newly formed family in case of their own unfortunate death is the top priority for many mothers and fathers, especially those who are single parents and the sole breadwinners of the family.

But buying life insurance isn’t just for new parents. Many people need life insurance, and it’s part of financial planning at many stages of life. Here are some of the best life insurance plans to consider, depending on your age, life situation, and financial goals.

Best choice for young people: Term life insurance

If you are a young, single adult in your 20s with no children, you may be wondering if you really need life insurance. The answer is: maybe! Ask yourself:

Is there anyone helping you pay off your debts? If you unfortunately pass away, term life insurance can help you pay off your debts.

Do you want to help take care of your parents after you die? Term life insurance can provide cash to your parents or other loved ones, even if they are not your children or other family members.

Have you ever thought about taking care of your favorite nephew, niece, or friend if you passed away? Term life insurance can help take care of other people in your life, even if they are not your children or even relatives.

Do you want a spouse or children in the future? Even if you’re not married or having kids yet, buying term life insurance when you’re young can help you lock in an affordable premium.

Why term life insurance is the best choice: It’s generally the cheapest life insurance you can buy, offering the largest sum assured (death benefit) for the lowest monthly premium. If you’re in good health and as a 20-something, you can get cheap rates on term life insurance. For example, if you’re 25 and a nonsmoker, you can get $500,000 in term life insurance coverage from the best life insurance companies for less than $20 per month, depending on the length of the policy term.

Best choice for new parents: Term life insurance

Are you welcoming a new baby into your life? Congratulations! But mourn for your bank account, too. Children are incredibly rewarding, but they’re also expensive; raising a child from birth to age 17 costs an average of $300,000.