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Do I need Life Insurance?


Do I need life insurance?

These days there are so many important things vying for space in our monthly budget – from the essentials like food and rent to clothes, transport, school and university fees; the list is endless. Even when it comes to insurance, you probably already have to make provision for car insurance, home and contents cover and quite possibly travel, breakdown and pet insurance to boot. So do you really need to add life insurance to this already lengthy collection of outgoings?

The main selling point of life insurance is that it protects your dependents in the event of anything happening to you. The financial strains that come from a bereavement aren’t discussed as much as they perhaps should be, as although emotionally your loved ones will (hopefully!) miss you more than they’ll miss your pay check, the loss of that salary can have a devastating effect and create more stress and upheaval at a what is already likely to be a difficult time.

Even if you don’t have children or a long-term partner, some debts - such as a mortgage – can in some circumstances be passed down to your next of kin. There are also issues such as funeral costs – which can be very expensive. Taking out a life insurance policy can allow you to ensure that your final wishes are followed through properly and without putting additional strain on your family.

So when is the right time to invest in life insurance? As the future is rarely easy to predict, it’s always worth having insurance if you’re an adult. If you choose a policy with no fixed term (i.e. one you continue to pay up until you die) then you may end up paying more than the value of the policy over time, which is why younger people often delay looking into it. However, as with every other form of insurance, the real value is in the peace of mind. Also, if you’re younger and healthier, you’re likely to be able to negotiate lower monthly premiums, making it easier to work your policy into your budget.

Conversely, if you’re older and fear that you might have left it too late to get any value from a policy; it might be worth looking into insurance providers that specifically cater to over 50s. These companies can often negotiate better value and tailor their policies towards the needs of an older market.

Ultimately, the answer to the question ‘Do I need life insurance’ is almost certainly ‘yes’. It may not be something that you will personally see the monetary benefit of, but the peace of mind that it grants for you and your family truly is worth its weight in gold.



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