Insurance for Spouse and Children

The ones who may need life insurance coverage the most are the members of the family who provide the family income.  Because the loss of income because of their deaths would have an adverse affect on the surviving members of the family, obviously, the first priority is to have adequate coverage on them. Once this is done, then you can take the time to decide if coverage for other family members is necessary.
If there is only one member of the family who provides all of the family income, then it can be prudent to obtain life insurance when the budget is very tight.  To pay for expenses that might not be covered otherwise is where the proceeds of life insurance will go.
Often it can make sense to by life insurance for children with the idea that more can be bought at a later age. If the child happens to require additional insurance later on, this could provide the protection. Or, due to some unforeseen event, they all of sudden become uninsurable. These needs would be taken care of by purchasing low-cost insurance for a certain amount of years.