Do I need life insurance?

Is it ever compulsory to take out life cover?

Life insurance isn't mandatory, however it's worth giving serious thought to. After all, it's very common to take out insurance on the contents in your home, or when you travel, so it should make even more sense to ensure protection for yourself and your loved ones against the unexpected.

Do I need life insurance if I'm single?

It's easy to assume that if you're single with no children, then you won't need life insurance because no one's relying on your income. But there are circumstances when you might benefit from cover. Two reasons are:

• To cover the high cost of funerals – one report has suggested that the cost of a service has risen by 70 per cent over the past decade. Having insurance in place could mean your family gets a pay-out to help them cover the cost of your service if the worst happens. Learn more in our guide to funeral cover.

• To protect your family against debts – if you owe more than the total value of your assets, then by naming a member of your family as your beneficiary you could give that person enough funds to continue to make the debt repayments (or to clear your debt in full). This could be helpful if you pay the mortgage of a shared ownership home with a family member.

What factors affect the cost of life insurance?

There are several factors affecting the cost of a policy, including the amount of money you'd like your loved ones to receive if you pass away. Generally speaking, the larger your policy, the more your beneficiaries will get – but it will cost more. Other factors affecting the price of a policy include:

• Your age – as you get older, you can expect to pay more for a premium. When you're younger, you are expected to live longer so your policy will reflect that

• Your health – if your family has a history of serious illnesses (such as cancer or heart problems), then you can expect your policy to cost more. The same goes if you have any pre-existing medical condition. That's any illness, injury or disease that existed before or at the time of taking out a policy

• Your lifestyle – if you smoke and/or drink, it's likely to impact the cost of life insurance. During your application you'll be asked how regularly you exercise; improving your fitness and eating more healthily could both help to reduce the cost of your premium.

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