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Families have all types of expenses: mortgage payments, utility bills, school tuition, credit card payments and car loan payments, to name a few. If something were to happen and your household unexpectedly lost your income or your spouse’s income, your surviving family might have a difficult time covering expenses. Funeral expenses and other final arrangements could further stress your family’s financial stability.

That’s where life insurance comes in. A policy acts as a financial safety net for your family by providing a death benefit. If you die while covered by your life insurance policy, your family receives a payout, either a lump sum or in installments. This is money that’s often tax-free and can be used to meet things like funeral costs, financial obligations and other personal expenses. You get coverage in exchange for paying a monthly premium, which is often decided by your age, health status and the amount of coverage you purchase.

Don’t know how much to buy? A good rule of thumb is to multiply your yearly income by 10-15, and that’s the number you should target. Companies may have different minimum and maximum amounts of coverage, but you can generally find a customized policy that meets your coverage needs.