Do you need life insurance?

Here, we look at when you might need life insurance, to help you decide if it’s right for you.

If you have family who depend on you financially, it’s worth considering life insurance. For example, you might have:

• a partner who relies on your income or your contribution to the household
• children or young dependents
• other dependents who rely on you as a caregiver

If you have life cover in place, your family will receive money after you’re gone.

It can be difficult but think about how their circumstances would change and the kind of financial support they’d need if you were no longer around. For example, the money could be used to:

• replace your income, which is no longer available
• pay off large debts, such as a mortgage
• cover childcare and other expenses

You may already have some life insurance through your employer. If so, check what’s included to see if you need extra cover. Does the length of cover match how long you’ll need it for? It’s also worth considering what would happen if you changed jobs, as you’d no longer be covered through your employer.

It’s not something we like to think about, but it’s important to let loved ones know about any financial arrangements, in the event you passed away.

Have conversations about how your family will manage financially to help you understand if you need life insurance and how much cover is required. 

The more practical discussions you can have with your family now, the better – it can make a difficult time just that little bit easier. You may want to let your loved ones know:

• where they can find a copy of your will
• the contact details for executors and your solicitor
• details of any financial plans, policies and cover you have
• how they can find other important paperwork, such as property deeds, bank statements and pension statements
• if there are any debts that need to be paid, such as credit cards or loans

It’s not easy to think about life insurance and what will happen after you’re gone. But it can make a world of difference to your loved ones and give them one less thing to worry about.