Good question, and it’s great that you’re looking out for your family. Many people assume nothing unexpected will happen, but I’ve seen some really sad financial situations that could have been avoided. I recently helped get a Mutual of Omaha policy approved for a trade worker in a similar construction job with no issues.
Term insurance is great for higher coverage amounts at a lower monthly premium, which can cover big financial responsibilities like your mortgage and provide for your family long after you’re gone. A good rule of thumb is to get term coverage equal to 5-10 years of your annual income, depending on what you can afford. For example, if you make $50k a year, calculate how much coverage that would give you, then adjust based on the cost. If you’re in good health with no chronic issues, your chances of qualifying for term are good based on the medical underwriting results I’ve seen from major insurance companies.
If something unexpected happens and you have a policy, your spouse could work with a financial planner to help make the death benefit last. Remember, many life insurance policies include chronic, critical, or terminal illness riders at no extra cost. These allow you to draw from the policy’s face value if you fit one of these conditions. Make sure to ask about this with any policy. Keep in mind that using these riders will reduce your overall death benefit.
You might also want to consider a permanent policy, like “universal” or “whole life,” before you get much older. As an agent, I prefer selling whole life for reasons I won’t get into here. Permanent policies cost more but are meant to last your entire life, providing for your family when they need it most, unlike a term policy that will eventually end and may become unaffordable. Be cautious with “cash value” universal life policies that sound too good to be true. There’s really only one company I’d trust for a universal life policy, and while it can build cash value, it won’t be at the high rates some companies claim.
I hope this helps. There are many factors to consider when choosing a policy—cost, income replacement, mortgage, debts, number of kids, their ages, current financial assets, equity in your home, and what your family would do if you died, like selling the house or moving closer to family. Talk these things over with your wife now while you can. Feel free to ask more questions if you have them.