Do I Need Life Insurance?
When it comes to exciting purchases, life insurance is never going to top the list. However, it could be an essential purchase if you have a new-born or a toddler, children of school age or a partner who depends on you financially.
Who needs life insurance?
If you're left wondering "do I need life insurance?" read on to find out which types of people commonly need life insurance, as well as for answers to some questions you might have.
If you're the only earner in your family and your dependants are entirely reliant on your wage, what would happen if you died? It is of course not a nice thing to think about. However, if the worst happened and you didn't have life insurance, your loved ones may not be able to cover mortgage repayments, household bills and school fees.
Single parents are also often the sole breadwinner for their family and as such may wish to consider life insurance for single parents to ensure their children are provided for.
If you are a couple and both work you may think that you don't need life insurance. However, this isn't necessarily the case. It may be that just one of your salaries would not be enough to support your household requirements. In this case, life insurance for dual earners may be appropriate to ensure that your dependants have some financial support in the event of one of your deaths.
Stay at home parents
As a stay at home parent you may think you don't need life insurance. However, if you did pass away, how much would it cost to keep the household running? Childcare alone can be a significant expense and a life insurance policy could provide a payout that would help to cover these and other costs in such circumstances. Read more about life insurance for stay-at-home mums and dads here.
Do I need life insurance if I have no dependants?
Not everyone needs life insurance. If you have few debts, no dependants, or enough savings that your dependants wouldn't struggle financially in the event of your death, it may be an unnecessary expense.