Do I need life insurance? Many people may find themselves asking this question when they are considering their financial future.
At nowsure, we are here to provide you with the information you need. We can talk you through the different types of life insurance policies that are available and their associated costs. So that you can make informed choices about your future.
Get your hassle free quote today. If you have any questions, nowsure is here to help you understand if life insurance is the right path for you.
Why do I need life insurance?
Life insurance can provide you with financial security for your loved ones in the event of your death. It makes sure that they are financially protected and supported during an already challenging time.
But, when deciding if you need life insurance, there are several factors to consider. Do you have a spouse, children, or any other dependents who rely on your income? Would financially supporting them with a life insurance policy be a necessity for them in the case of your absence? Do you have any outstanding financial obligations like mortgages or loans? Our handy online insurance calculator tool can help you plan ahead and understand how much cover you might need.
Asking yourself questions like these can start to build a picture of what you would get out of a life insurance product.
Let’s explore what life insurance is first and how it could be helpful for you.
Life Insurance Explained
Life insurance offers financial protection and peace of mind to individuals and their families. There are different types of life insurance policies available to suit various needs, such as:
- Term Life Insurance – This covers you for a predetermined period, such as 5, 10, 20, or 30 years before it expires.
- Whole Life Insurance – The cover lasts until you die.
- Level Cover Life Insurance – A fixed sum is assured throughout your policy term. Payments and coverage stay constant. Your loved ones receive a predetermined payout in the event of your death.
- Decreasing Life Insurance – This is mainly for people with a mortgage to repay. The payout decreases over time, along with your remaining mortgage or as your loved ones become more self-sufficient.
- Increasing Life Insurance – The premium costs and coverage you would receive increases throughout the duration of your policy. This type of insurance can keep up with inflation or cover mounting debts.
- Critical Illness Cover – This type of cover can be taken alongside traditional life insurance. It pays out a lump sum if you are diagnosed with a critical illness which is listed in your policy. It can help to cover your medical expenses or other medical costs.
Motivations for you to Get Life Insurance
There are several motivations for someone to consider getting life insurance:
- Financially protecting your loved ones –
Life insurance offers you peace of mind by financially protecting the people that depend on you if you die. It provides them with the funds to maintain their lifestyles in your absence.
- Financially protecting your loved ones –
- Financial stability –
Life insurance can be a tool to safeguard your family from financial hardships. It can help cover mortgages, loans, or credit card bills, relieving your loved ones from the burden.
- Financial stability –
- Financial peace of mind –
Knowing that your loved ones are covered when you die can help rid your worries about their well-being. It allows you to focus on enjoying the now.
Remember, life insurance is not a savings or investment product – its value becomes clear once a valid claim is made. The true purpose of life insurance is to provide a safety net for your loved ones, offering financial security when you die.
Who should get life insurance?
People who have others who depend on them financially are typically candidates for life insurance. Financial dependents include children, spouses, partners, ageing parents, or disabled family members – essentially, people who rely on your income to meet their daily living expenses, educational needs, or future financial aspirations.
If you have recently taken out a mortgage, you may want to consider life insurance or taking out an accident protection plan. Life insurance can pay off the remaining mortgage balance if you die unexpectedly.
You may also wish to consider life insurance if you are in a long-term relationship or considering marriage. This is because life insurance can provide financial protection for your partner. This means that they can maintain their standard of living in the event of your death.
Life insurance premiums can be cheaper for younger people than older people. This is because younger people tend to be healthier, with a lower risk of developing medical conditions.
Who does not need life insurance?
Life insurance is something many people think about, but there are situations where it may not be needed.
If you are single and do not have anyone else who depends on your income, life insurance may not be as necessary. Since there is less chance of someone suffering financially if something happened to you, a policy that pays out money upon your death might not be needed.
Another situation where life insurance might not be as necessary is if you own your home and have already paid off your mortgage. Without the ongoing expense of a mortgage, you might not need the extra financial protection that life insurance provides.
It is important to think about your circumstances and financial needs before deciding if you need life insurance or not. Talking to an insurance provider, insurance broker, or financial advisor can help you figure out what is best for you.
Is life insurance ever a legal requirement?
The short answer is no. It is not a legal requirement to have a life insurance policy.
However, there are some cases where it might be necessary. For example, if you are taking out a mortgage, the lender might refuse you the loan unless you get life insurance. If you die, the insurance payout could help to pay off the rest of your mortgage. This acts as a financial safety net for the lender.
Even though it is not a legal obligation to have life insurance, it’s important to think about what could happen to your loved ones if you don’t have it.
Ready for your life insurance quote?
At nowsure, our team of insurance experts are here to make sure you are well informed and able to confidently make decisions for your future. We also have additional resources on life insurance to help you gain a better understanding in your own time.
We are also here to make sure getting a life insurance quote from our trusted panel of insurers is a simple process for you. Contact us today or call us at 0800 033 4187.