If someone at home depends on your income, buy term life insurance for the breadwinner first — not for your kids

Term life insurance covers you only for a set number of years. If you pass away during that period, your family receives a payout. This coverage is meant to protect dependents who rely on your earnings — for instance, if your mortgage is still unpaid or your children are still young. If no one depends on you financially, this insurance isn’t necessary. Since kids don’t earn income, laws also limit how much death benefit can be paid for them.

Cost

A few hundred to a few thousand yuan per year, depending on age, coverage amount, and policy length (this is a rough estimate by the author; no official figures exist). Be sure to disclose your health status truthfully before applying; the process takes about half an hour.

Benefit

Regulatory definitions classify life insurance as personal insurance where human lifespan serves as the insured event; it includes term life, whole life, and endowment policies. Term life insurance pays out only upon the insured’s death within a fixed timeframe. Whole life insurance remains valid for the entire lifetime. Accident insurance only compensates for death or disability caused by accidents; it doesn’t cover deaths from illness and thus cannot replace life insurance. Contracts requiring death payouts must be approved and agreed upon by the insured; otherwise they’re invalid. Parents may purchase death coverage for minor children without such consent, but total payouts for a child’s death cannot exceed statutory limits. Typical coverage amounts reach 100,000 yuan, and another 100,000 yuan as well, hence the “high benefit” rating. No official recommendation exists for ideal coverage levels; the author’s calculation method adds remaining mortgage debt, projected expenses until children reach adulthood, and several years’ worth of household costs (based on national data revised in 2015).

Notes

This C rating stems from the lack of official guidance beyond basic definitions and payout limits; the “prioritize adults” recommendation follows logically from “whoever loses income would jeopardize household stability.” A child’s death doesn’t reduce household income, whereas losing the primary earner leaves mortgage payments and child expenses unpaid. When funds are limited, prioritize term life and one-year medical coverage for adults before considering similar coverage for kids. For details on truthful disclosures and guaranteed renewability, see Section 7, Article 20 (one-year medical insurance). The designated beneficiaries here fall under Category ②: your spouse and children.

Sources · 2

1. 中国保险监督管理委员会 (2011). 人身保险公司保险条款和保险费率管理办法（保监会令 2011 年第 3 号，第八、十二条）. gov.cn/gongbao/content/2012/content_2163594.htm
2. 全国人大常委会 (2015 修正). 中华人民共和国保险法第三十三、三十四条. flk.npc.gov.cn/detail?id=2c909fdd678bf1790167…