Q's about life insurance

I am 38 and DH is 34, we have two DD's - 5 and 1. We have never had life insurance but I am not sure why as we have always had car, house and contents insurance. So I am thinking about it seriously now but i have some questions.

1. If you have life insurance, why?
2. Who is your policy with?
3. How much does it cost and how much cover do you have?
4. Are there any exclusions?

Anything else I need to know?

I am 38 and DH is 34, we have two DD's - 5 and 1. We have never had life insurance but I am not sure why as we have always had car, house and contents insurance. So I am thinking about it seriously now but i have some questions.

1. If you have life insurance, why?
2. Who is your policy with?
3. How much does it cost and how much cover do you have?
4. Are there any exclusions?

Anything else I need to know?

I've had life insurance fo about 9 years at a time where I was single with no child. I figured death is miserable enough that someone close to me may as well have some cheering up. At the time I also had a modest mortgage. So, with the cover it meant that my share was paid and the funeral expenses could be reimbursed. Death is a stressful time already. (I was single with no childen when I took out this cover.)
I think my cover is with Lumley. I got it through Westpac.
The cost depends on the amount and the type of cover you have. Some people have a policy that doesn't increase with inflation and others do. I have a term life cover policy and the premium and the cover increases annually (to reflect inflation). When I started the policy, I think it cost around $2 every two weeks. I declared I was a smoker and I should really get that changed now (I quit). It costs a wee bit more for a smoker than a non-smoker, understandably.

There are exclusions, but at the time they didn't apply to me. They would now. I had ovarian cancer in 2005 (two years after I took out the policy) and if I tried to get insurance now, I wouldn't get coverage, so I'm glad I was ahead of myself.

I have had it for around 15 years through my super but its only like $150k payout and DF has had the same for around 10yrs.

We also have life/permanent disablement through MLC for $500k each. It costs around $135/month. I think there was a 13 months suicide/death from medical reasons.

We have it so that at least the mortgage would be paid off and if we both should go at least they could keep the house even if it's just for future investment. We know that they would be looked after by family but atleast they could still live in their own home!

I have basic basic life insurance, it cost me $2.89 per fortnight(it think its for 30k). Its with BNZ bank. the main reason I got it was because it will pay for a funeral and that would be the only reason I would use it.
DH has got it also but his is for more (50k) but his work covers loss of income etc so his life insurance is still basic too.