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What to consider
 The good news is that life insurance is a lot cheaper than it used to be. Premiums are around 10 to 20 percent less than they were a decade ago. It's also less hassle to buy. Assuming you're not elderly or ill, companies will sell as much as $500,000 cover without making you take a medical examination.
You don't even need to deal with an agent.
Who needs it, and how much?
If you have children, a partner or elderly parents who rely on your income or care, or you have assets that couldn't be easily sold to pay your debts, you should consider life insurance.
You buy the cover for the period you need it, which for most people is until the children are independent and the home loan is paid off.
It's not just people in the paid workforce who need insurance. A family with one partner in a job and the other caring for the children should buy cover for both. The cover on the non-earner allows the surviving partner to hire a caregiver or give up work, if the non-earner dies.
 At a minimum, life insurance should ensure that any outstanding debts and expenses including the funeral bill and the mortgage are paid, with as much cash left over as the survivor needs for immediate living costs. It's a good idea to work out what lump sum would be required to replace a lost income (or pay for a caregiver) until the surviving partner is no longer dependent on it.
What you get for your money
We've looked at "term life" policies, which pay out the sum insured if you die while the insurance is in force. The most common exclusion is suicide within the first 13 months of the policy.
 All the policies we've looked at will also pay up to the sum insured before you die if a doctor certifies that you have a terminal illness and you're unlikely to live more than 12 months (or a tougher six months with BNZ's policy). A few insurers limit the pre-death payout in these circumstances to $500,000 (ANZ, Medical Assurance) or $2 million (AMP, Asteron).
Most companies make a small immediate payment after a death to cover funeral costs, often $5000 but up to $10,000 with one insurer, ING Life.
Some policies include the option of increasing your cover following "special events" such as the birth of a child, a marriage, or buying a home, without any medical questions being asked. This type of feature could be useful.
Another option is to buy a policy such as ING's Life Income Cover, which would just pay a set amount out each month for a certain number of years.
Unsolicited offers
The unsolicited offers of life insurance you sometimes get in the mail can be worth considering, but check they meet your requirements as you would with any other policy. Be skeptical about add-ons such as accident cover - the Accident Compensation scheme generally provides all the cover you need in this area.
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