This is from Clark Howard - consumer guru.
Life Insurance
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Consider your own situation to see if life insurance makes sense for you, how much you need, and which type of life insurance would be best. If your family would be unable to make the mortgage payments without your income, you need life insurance.
Life insurance is meant to replace your income. My rule of thumb is to buy an amount equal to 10 times your annual salary.
If both spouses work, both should have life insurance to replace their own income. Don't buy insurance on your children.
There are two primary types of life insurance. Term life coverage provides a payment only if you die. Other policies, such as whole life or universal life, include investment components.
If you decide to get term life insurance, the best way to buy is by checking one of several websites for a financially strong company that offers low premiums. AMBest.com is a good site for research purposes. Look for insurers that have an A++ or an A+ rating. (Free registration is required to use this site.)
Don't cancel a whole life policy. Once you've purchased it, it's best to keep it.
Avoid buying more than one policy for any person. Every insurance policy you buy has fees hidden in it. So two $50,000 policies would cost more than one $100,000 policy.
NOLHGA.com can help you determine your level of state guaranty coverage in the event your insurer fails.
And more excellent advice from Clark
http://www.clarkhoward.com/news/clark-howard/insurance/buy-life-insurance-clark-smart-way/nCcHb/