So, you have the answer that you do need life insurance. Your follow-up question might be why you need it. Well, think about the current state of your finances, including both your debt and your belongings. When you die, your next of kin will have to take on all the responsibilities for your finances, which includes debt. Such a situation could negatively impact any children you have.

Life insurance can positively impact the family you leave behind. For instance, the policy could be written so it pays off your mortgage or provides funding for your children's college education. The death benefit can also help a spouse get through the immediate loss of a second income. Indeed, just the payment of final medical and funeral expenses makes life insurance a necessity.

Now that you understand the importance of life insurance, you probably wonder how much you actually need. Well, this question is the primary reason insurance agents exist - they have the expertise to look at your financial situation and help determine which policy will best set up your next of kin. The formula they use generally relates to between 7 and 10 times your annual salary.

Truthfully, you can't have too much life insurance. So, if you want an even more accurate representation of what's needed, consider the current state of your finances regarding unpaid debt. Life situations such as a chronic illness, a personal business, and children can also affect how much life insurance is needed for your next of kin.

A major factor is if you have any special needs children; you'll want to get a policy that will cover all the expenses of their care for the rest of their life.

Once you start looking at life insurance policies, you'll see you have choices. One of the biggest is between a term or whole life policy.

Term is limited to a certain amount of time - hence the name. Term policies range from 10 to 30 years. With these policies, both the cost and the payout stay the same throughout the term. However, at the end of the designated term, the policy expires. The idea is to provide younger families with financial security in case of an untimely death.

Whole life insurance policies don't expire. They provide lifelong coverage. What's more, these policies provide an investment component of cash value. This value grows throughout the life of the policy. The cost of the policy stays the same, though. You can even surrender the policy for the cash. The only real downside is whole life insurance costs more than term.

If you can afford higher premiums, whole life is a good type of policy to buy. However, if you're in a young-family scenario, term might make more sense for your finances.

The short answer is yes, you have to take a health exam. Agents have six classifications with which to work:

• Preferred Plus
• Preferred
• Standard Plus
• Standard
• Substandard
• Smoker

The state of your health will determine in which classification you fall. The classification determines the cost of your insurance premiums. The medical exam is similar to a classic physical. It includes height, weight, pulse, and some bodily fluid samples. As you can see from the categories above, being a smoker automatically puts you into a certain classification.

Don't let questions about life insurance prevent you from providing this important benefit to your family. Talk to an agent at S.N. Anthony Insurance Inc. about your policy options.