Life insurance sounds boring to most people, but it is important and necessary especially if you have loved ones that depend on you financially. It’s also surprisingly affordable. As with everything, ensure that you shop around to see the best policy available for you.

The important thing with life insurance is that you should cover your financial obligations while not affecting your financial resources. Here are the things you need to know to compare life insurance policies.

Funeral and Burial Costs

The average cost of a funeral with visitation and burial is $7,640. Ensure that the policies offered to you cover at least this amount for funerals.

Income Replacement

Take your annual salary and calculate the number of years until you need to support dependents, e.g., until the kids graduate college.

Debts

If you have a car payment, mortgage, or any other debts, your insurance should be able to pay them off.

Child Care

Without you, your spouse or partner may need to hire someone to look after the kids. Consider this cost as well when you compare policies.

College Tuition

Consider how much you want to contribute to your kid’s college education. Then multiply that amount with the number of kids you have. Your life insurance should cover this amount as well.

Make sure that all the quotes you receive offer about the same levels of coverage for each of the above points. That way, it’ll be easy to compare the cost of each insurance. You should also check out the customer service and satisfaction reviews about the insurer, compare all insurer’s financial stability, and any pending cases against them with the Better Business Bureau.

Don’t wait to get life insurance. It’s quite affordable. The average cost for a term life insurance policy with a $250,000 death benefit for a healthy 30-year-old woman is $160 per year. Also, if you buy life insurance when you’re younger, it will be significantly cheaper because your age and health will be on your side. Another positive about being healthy is that it makes the application process fast and easy. You may even be able to apply online and get approved for coverage in minutes without any medical exam.