If you're married or have children it's time for both life and long-term disability coverage. For your life coverage, don't mess around with anything other than simple term insurance, which offers the cheapest protection for your family. A healthy 30-year-old man can buy $1 million of coverage for as little as $1,200 a year. In general, you want enough coverage so that if you pass away the policy will pay off your mortgage and all other debts; cover any impending large expenses like private-school tuition; and generate enough income to replace at least half of your salary (with no debt or big expenses your spouse should be fine with the pay cut). For your disability coverage, check first to see what you have at work. Most companies provide short-term disability coverage for at least 60 days of illness. But only half of all midsize and larger companies provide extended coverage — and even then it's for only 60% of your salary. That might be enough. But you can supplement coverage to as much as 80% of your salary through a private policy. This coverage is not cheap — you'll pay about $1,100 a year for a policy that pays $3,500 a month to age 65.