Do I Need Life Insurance?
Not everyone needs life insurance. If I was still living out of a rucksack, just me and my Mac going from country to country, I wouldn’t bother. And perhaps if I’d married the daughter of a billionaire, I wouldn’t either.
But if you’ve got a spouse, a child, both or even a long-term partner, for a small premium each month, you can ensure a pot of money is paid out upon your death to help your loved ones get by.
You should also consider that if you have a mortgage, or personal loan(s), these things will be paid from your estate (the assets you leave behind when you die). This means that although your house, car and back accounts might amount to a pretty net worth, these assets will have to pay off any money you owe when you die, which could leave your loved ones short of a bob or two.
A life insurance policy will enable you to stipulate what you want to be paid to your loved ones when you die, allowing you to account for things like the mortgage, money for your child’s university fees and money for your partner to support the family.
To decide whether or not you need life insurance, ask yourself this simple question:
Are there people in my life I care about that will need financial support once I’m gone?