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Summary

There are many different types of life insurance for different situations, the real question is - do you need it? This article gives you the lowdown.

Life insurance. Do you need life insurance?

Author: Emma Mayo

Life insurance, also known as term assurance, is a popular form of insurance that people get so in the event of their death, their family and dependants will be able to cope financially. However, not everyone has a family and children, so do they need it? Read on to find out more.

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Put simply - if you dont have debts (like a mortgage, credit cards, loans) and you have no dependants, then you probably dont need life insurance. If you die and you do have debts, it is your next of kin that will be faced with paying the debts off, and also paying for your funeral, which generally cost at least £1000.

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So even if you dont have dependants, but you do have debts, then it is probably a good idea to get life insurance so youre not potentially leaving a member of your family with the responsibility for paying the debts off for you. Because unfortunately, just like a sum of money can be inherited, so can a debt.

Many mortgage companies require you to get life insurance so the mortgage is covered if you die. A particular type called mortgage life insurance is a popular choice for people with repayment mortgages as the premiums go down over time as the mortgage debt decreases. However some people leave it to chance, so if they did die, the dependents would probably need to either sell the house, or continue the mortgage repayments themselves. (medical insurance)

There are choices to be made on the way you want your cheap life insurance to work too. There are three types: level, decreasing and renewable, and they all charge you differently ( you may also choose to add crtical illness insurance ) .

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