When they stop to think about it, many American families probably would admit they are inadequately prepared to cover living expenses if the primary wage-earner in the family were to die unexpectedly.

In fact, a 2007 LIMRA study found that 22 percent of families with dependent children would have immediate financial problems, and another 26 percent of families would only be able to cover expenses for a couple of months.

Having adequate insurance, whether it is low cost life insurance or a large life insurance policy that handles everything from immediate funeral expenses to a child’s college education, can be an excellent way to help your family prepare for an unexpected tragedy.

As a young family, you probably are pursuing financial security – possibly through retirement investments, savings accounts and even real estate purchases. Insurance – for your home, vehicles, business, health and life – is another platform that can help you gain financial security. Most mortgage lenders require some form of home insurance, all states require a minimum amount of car insurance and if you own a business, your investors probably insist that you have business insurance. But health and life insurance are securities not enough families take full advantage of, according to the Life and Health Insurance Foundation for Education (LIFE).

If you determine that life insurance might help your family situation out, you need to know a little more about the different types of insurance:

Term life insurance: This coverage lasts for a “term” you choose, usually 10, 15, 20, or 30 years. During that time, your life insurance premiums are guaranteed not to increase. If you pass away during that time period, your beneficiaries get a cash death benefit. If you live longer than the term period, you may have the option to continue your life insurance coverage for an annual, renewable premium, which is generally much higher. You may be able to convert a term life insurance policy to a permanent life insurance policy without getting a new medical exam.

Permanent life insurance: This coverage is meant to last the rest of your life (as long as you make the required premium payments, of course). Second, part of the money you pay into your permanent life insurance policy is set aside in an account where it can grow cash value that you can tap into later on withdrawals or loans will generally reduce the death benefit.

Financial security is a good goal for families to pursue. And life insurance is one option to pursue to help give your family stability for unexpected changes.