Why do I need life insurance

Baby holding father's finger
Baby holding father's finger

Life insurance isn’t something that everyone needs, but for the majority of us, it can be a reassuring policy to have in place for your family. If your depended on for your income, then it’s important to get life insurance to able to provide for those who need it in the event that you pass. With that being said, let’s discuss why it’s important to have life insurance and why you might need it.

What Is Life Insurance?

Life insurance can be paid out as a lump sum or in the form of regular payments to your family or any beneficiaries you have on this policy. The amount paid out will depend on the level of cover that you have.You can decide on how it is paid out and where those payments might go, for example, to pay for the mortgage or funeral costs, etc.

There are two main types of life insurance worth knowing about. These are term life insurance policies and whole-of-life policy. The term life insurance runs for a fixed period of time and will only be paid out if you die within that fixed period. The whole-of-life policy will pay out regardless of when you die.

Do I Need Life Insurance?

If you have dependents, such as children or a partner that relies on your income, then yes. You might also need life insurance if you have regular payments like a mortgage to pay for and want to ensure that these costs are covered so that your loved ones don’t have to worry about it.

If you’re single or your partner earns enough for your family to live on, then you might not need life insurance. If you’re on a low income, then you may be eligible for state benefits instead and may not need to have it.

It’s really down to you whether you want to have life insurance or not. Either way, it’s worth considering it and weighing up your needs for it.

Is Life Insurance Costly?

It depends on who you choose as your insurance provider. There are lots of providers out there, and the price you pay for life insurance can depend on number of factors. These include your age, your lifestyle, your health, the length of the policy, etc. These are all factors to consider for the insurance provider, and if you are more likely to make a claim because of one of these factors, you may be charged more. 

It’s important to do your research and look at all the available insurance providers out there. A life insurance comparison could be something that’s beneficial in making sure you have the best deal and that you’re paying the right price for the cover you need.

You should also be checking whether or not you already have it. Some employee packages will offer a ‘death in service’ benefit, and this can cover you for a multiple of your salary that may mean that no life insurance payments are really needed.

Do your research, consider your options and if you need life insurance, make sure you’re looking for the best ones out there for your needs and requirements.