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
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Put simply - if you don't have debts (like a mortgage, credit cards, loans) and you have no dependants, then you probably don't 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.
So even if you don't have dependants, but you do have debts, then it is probably a good idea to get life insurance so you're 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.
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 ) .