Life insurance: Is it for me?

14 April, 2025

The purpose of life insurance is to provide a cash sum to your dependents – your partner or children for example – if you died or were diagnosed with a terminal illness. To help you decide if it’s right for you, here are some scenarios when life insurance should be considered...

Common scenarios to help you decide on life insurance

Scenario #1: You have children

If you have children who rely on your income, life insurance is likely to be essential. It ensures they’ll have financial support if you’re no longer around. So, whether you already have children or are planning to start a family, life insurance can offer you peace of mind.

Scenario #2: You have a partner

Whether you’re the sole earner or you both earn an income, losing a partner is likely to have a big financial impact on the other. Bills might become tough, or in some cases impossible to manage with just the one income. If you have children, you might also need to work less meaning your own income reduces. Life insurance will provide peace of mind and help to cover bills and everyday essentials. As two people rarely earn the same, you may want to consider separate policies that reflect the financial impact of each of you passing away.

Scenario #3: You have a mortgage with a partner

If you and your partner have a mortgage, it’s likely that life insurance is appropriate for you. If you were to pass away, the right policy with the correct cover amount and term could help your partner pay off the mortgage. You should then consider the costs of running the home such as bills and food. You can take out joint life insurance which covers you both or two separate policies.

Scenario #4: You have no dependents

Even if you’re single and don’t have dependents, there might still be situations where life insurance could be worth considering. It could help to cover any debts, such as a mortgage, and certain expenses, such as funeral costs, if you died.