Your need for life insurance varies with your age and responsibilities.

It can be a very important part of financial planning because it pays monetary benefits upon the death of the insured covered in the policy.

There are several reasons to purchase life insurance.

You may need to replace income that would be lost with the death of a wage earner. You may want to make sure your dependents do not incur significant debt when you die. Life insurance may allow them to keep assets versus selling them to pay outstanding bills or taxes. You can also purchase a life insurance product that's designed to protect your some or all of your mortgage in the event of your untimely death. Some plans can even pay the monthly mortgage for your loved ones. Some plans can provide you with a money back option that returns your premiums in the event that you don't pass away if the benefits were never used. 

All life insurance policies are not the same.

Some give coverage for your lifetime and others cover you for a specific number of years. Some build up cash values and others do not. There are two basic types of life insurance: term insurance and whole/ permanent insurance. (Source: State of New Jersey Department of Insurance & Banking)