Personal Finance Insider writes about products, strategies and tips to help you make smart decisions with your money. We may receive a small commission from our partners, but our reports and recommendations are always independent and objective. When I was pregnant with my first child, my husband and I decided to take out life insurance policies. We wanted our family to be safe in the unlikely event that one of us died young. We got our policies through Costco and are satisfied with our rates – we pay $ 40 a month each for our policies, valued separately at $ 1 million and $ 500,000. I chose life insurance because it is much more affordable than whole life insurance and would cover us when our children are young. Policygenius can help you compare life insurance policies to find the right coverage for you, at the right price »Like many young couples, my husband and I have totally changed the way we managed our finances when we had kids. We started saving more, opened a 529 savings plan for our newborn baby, and even purchased life insurance policies. Nobody wants to think about the possibility of dying young. But when you have kids, you have to do it. Here is how we understood how much life insurance we should get, in addition to the amazing place where we purchased it. We have chosen term life insurance policies While life insurance policies are sometimes thought of as being reserved for the main heads of families in a family, we have decided to purchase one policy each for me and my husband. We have insured a bigger policy for my husband, since his salary was our main source of income. And while she earns significantly more than me as a full-time freelancer, we have also secured a policy for me not only to cover my earnings as a freelancer, but also the cost of childcare since I also provide that . life insurance policies, which provide coverage for a specific period of time. Life policies are much cheaper than full life policies, which cover policyholders for the duration of their life. Our term policies will expire in 10 years, a time when we will probably be able to switch to full-life policies. Since I was pregnant at the time of securing the policy, I have been asked to take a physical, while my husband was not; Different life insurance providers have different requirements and many require medical tests for all applicants. The cost of the life insurance policy (and any approval) may depend on your general health and any pre-existing conditions. How we decided the value of our policies Deciding the size of our respective policies was a bit more complicated and took a bit of maths. For my husband, we have insured a large enough policy – $ 1 million – that in the event of his death, I would be able to pay off his student loans, set aside a considerable amount in my son's college savings account 529 and live at the same standard of living for six years. This would put my son well in elementary school, which would make getting full-time work much more feasible. It's worth noting: Federal student loans are usually forgiven if the loan holder dies, while other types of loans, including private loans and those that are delivered, may not be forgiven, so be sure to read the fine print on student loans with regards to loan forgiveness. My policy – worth $ 500,000 – is large enough to repay my student loans, put a large sum in my son's 529 and cover between 5 and 10 years for a nanny, depending on her salary and age. time commitment at that time. Since my husband works full-time in a demanding job, paying for reliable childcare in the event of my death was an essential part of his policy. We pay $ 40 a month each for our policies. Chosen our life insurance provider I have already written about my new love for Costco, but I had no idea that it could be a point of reference for anything from toilet paper to jewelry to life insurance. Costco does not endorse the policies themselves; this was done by a third party company called Protection Life. For us, the rates were also much cheaper than other life insurance companies. Getting a policy through Costco was relatively simple. My husband, who has always been a buyer of bargains, has heard that Costco members were entitled to affordable life insurance. We called the general life insurance number of the shop, filled out an application, received the material and a month later we had our policies in hand. Is life insurance the sexiest thing to spend your money on? Not exactly. But as parents of two with some complicated financial obligations, it's worth making sure we're covered in the unthinkable.