Life insurance is a contract between you and an insurance company where you pay in exchange for a lump-sum payment (death benefit) to your beneficiaries upon your death. It serves to provide financial protection for your loved ones in the event of your passing, helping to cover expenses such as funeral costs, mortgage payments, or income replacement.

The amount of life insurance you need depends on factors such as your income, debts, lifestyle, number of dependents, and future financial goals. A common approach is to consider a coverage amount that would replace your income for a certain number of years or cover specific expenses like mortgage payments or college tuition.

While there's no specific age that applies universally, it's generally recommended to consider life insurance as soon as you have dependents or financial obligations that would cause hardship in case of your death. However, life insurance costs are determined by your age and health which means the younger and healthier you are the lower your cost can be.