Life insurance for parents with young children

You probably know why life insurance is an important support beam in a strong financial house: It will provide income for your spouse and dependent children in the event of your untimely death. That's why young parents are a key market for insurance agents.

But for many, life insurance continues to be a worthwhile expense even after the children finish school and fly from the nest. This is especially so because of economic and social trends and medical advances. Economic turmoil, especially, is one more reason you might need to update your coverage now.

For starters, many Americans who tapped their home equity or traded up to bigger homes and loans during the go-go years have added decades of mortgage payments at the same stage of life when World War II generation parents owned their homes free and clear. That, combined with underwater home values for many homeowners, is a debt sentence for your survivors if you don't have an adequate amount of life insurance.

Societal changes have also created new needs for coverage. Working couples who delayed having children might still have dependant kids when they're in their 60s. Ditto for blended and new families formed in later-life second marriages. In 2009, 6 percent of married men in households with children under 18 were 55 or older, up from 3.6 percent in 2000, according to the U.S. Census Bureau. And parental financial obligations rarely end at 18, especially for college-bound kids.

Finally, because of greater health awareness and advances in medicine, your surviving spouse may well live a decade or two after you die. Those sunset years will be costly, and a sufficient death benefit will help push back the day when he or she might outlive your joint assets.

In these uncertain times, it's especially important to re-examine your life insurance needs to make sure your coverage is up-to-date. There are five questions you need to ask to get the best value for your premium dollar.

• How much do I need?
• What type of policy is best?
• Do I qualify for coverage?
• Where to get the best price?
• How strong is the insurer?

Learn more in the Consumer Reports Money Adviser report, Is your life sufficiently insured? And if you have a cash-value life insurance policy, there are at least eight ways to get cash from it. See Cashing out instead of checking out.