There are two basic categories of life insurance: term life (temporary insurance) and whole life (permanent insurance). Speak to your insurance agent to see which is best for you.

The proceeds of life insurance are paid directly to the beneficiary and is not subject to taxation.

Most people feel that 5 times there yearly income is a adequate life insurance policy amount. But depending on your lifestyle and amount of debt you may want to purchase a larger policy. Your mortgage broker may be able to refer you to a good insurance agent.

It is important to shop for life insurance when you are relatively young and in good health. Once you procure a good life insurance policy when you are young it normally will automatically renew so you won't have to worry about qualifying as you age or develop health problems.

You don't need to have life insurance, but it is always good to be covered.

When comparing policies, it is important to find out if the death benefit remains level throughout the term of the policy or decreases with time. Remember, as your home appreciates you may be refinancing so a decreasing policy may save a few dollars but be inadequate for mortgage protection.

Today, where the real estate values are high, if it takes both incomes of the husband and wife to qualify for the loan, then it makes good sense for both to carry term life insurance (also known as mortgage insurance that gradually decreases with loan amount). Too many times a spouse is left with the entire house payment, that they cannot afford on their own income, and are forced to do a quick sale and worst case scenario are headed into foreclosure.

Life Insurance policies are also a great investment. There are also policies that you may defer your taxes on any gains. I'd be happy to help you find a personal finance advisor to assist you.