We'll help you determine the type and amount of life insurance you need. iStockphoto By the editors of Kiplinger's Personal Finance Updated January 2015 Buying life insurance is arguably one of the most important financial decisions you can make, and one of the most confusing. The number of policies to choose from, and the complexities of some forms of life insurance, can make comparison shopping difficult, if not impossible.The stories below were constructed to help you cut through the confusion, and determine the type and amount of life insurance you need. When Should You Buy Life Insurance? If no one depends on your income for support, you probably don't need life insurance at all. How Much Life Insurance Do You Need? The answer is based on a formula that considers immediate and future needs and how much income your dependents will have when you're gone. Advertisement What Kind of Life Insurance Should You Buy? For most people, term insurance makes the most sense. If you're looking for a savings component, get ready for some real confusion. Get the Best Rate on Life Insurance Here's our guide to getting the most bang for your coverage buck.