Does everyone need to have life insurance?
Not necessarily, it depends on your circumstances. If you have dependents then it should be something you consider carefully. Making sure they are taken care of should the worst happen to you could be very important to you especially if you are the main bread winner. But don’t presume that it’s only breadwinners that need to consider life insurance, it’s worth think about whatever your situation:
- Two income families – don’t think that just because your spouse or partner works too, then there’s no need for insurance. Think about whether your financial contribution would be missed, is one salary enough to cover all the household outgoings? What would happen if they need to cover the cost of additional childcare?
- Stay at home parent – one thing many stay at home parents do is underestimate their financial worth. If you weren’t around, then how much would it cost to cover childcare and household chores? How would your partner manage these If you weren’t around?
- Carers – if you care for other relatives and you weren’t around how much would your care be missed – not just emotionally but financially too?
Even if you already have cover such as life insurance included in your employment package or if you’ve got an existing policy – check it’s enough to cover everything that your loved ones might need. A policy taken out years ago might not stand up to the responsibilities you have now. You may have become a parent since then, moved to a bigger house with a larger mortgage or just got married – life’s always changing and a good policy should reflect your needs as they are right now. However, eternal singletons with no dependents may not need to have life insurance at the top their priority list.