As a young adult just launching into your first career, you are ready to also take on other adult responsibilities. This includes purchasing your first life insurance policy. If you have never purchased life insurance coverage before, you likely have a lot of questions. The following guide can help.

Who needs life insurance?

Life insurance isn't just something you need to give your heirs an inheritance. Even as a young, childless professional you can need some life insurance coverage. Those with dependents, such as a spouse or children, do need more coverage than those without. If you have dependents, particularly if you are the main income earner, you need to make sure they are taken care of. If you are single, you only need a small policy that will cover your final costs so they don't put a financial strain on family or friends.

How much do you need?

The amount of insurance you need varies depending on your specific situation. For example, if you have a dependent spouse, you want a policy large enough to replace your salary for a year so they have time to grieve as well as find replacement income. On the other hand, if you have children, too, you may want a large policy that allows your spouse to support the kids without the need to rush back to work. For single people, a policy that is just large enough to cover funeral costs and final bills is all that is needed. Decide what and who the policy is for, then discuss your options with an insurance broker.

What type of policy should you buy?

There are two main types of life insurance policies—term and life. Term life insurance is the least expensive option, but it is a finite policy. It will only actively pay if you pass away during the insurance period. Term lengths can range from five to thirty years, depending on the policy. The main concern with term life insurance is that it has to be renewed and it gets more expensive as you age. Whole life policies, on the other hand, have a set payment amount and they cover you for life as long as you are making your payments. These payments aren't lost, though, they add to the cash value and you can often even make withdrawals from the accrued values if necessary. Alternatively, you can allow the policy value to rise. As a young person, consider getting a term policy that can be converted to a whole life policy when your insurance needs mature.

For more help, contact a life insurance agent in your area.