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 critical illness. To help you decide if it’s right for you, here are some scenarios when life insurance should be considered…
Scenario #1: You have children
If you have children who depend on your income, life insurance is essential. In a nutshell, your insurance would provide financial support to your loved ones if you died. So if you’re expecting to start a family soon or already have children, give yourself peace of mind by taking out life insurance.
Scenario #2: Your partner is the sole breadwinner
If your partner earns enough to fully support your family, a life insurance plan in their name would help provide financial support to you and your family if they died.
Scenario #3: Your partner is a stay at home parent
If a stay at home parent dies, their partner may wish or need to stay at home, so their life insurance plan could be used to provide financial support. It would help to cover the day to day costs of running a home and childcare, for example.
Scenario #4: You have no dependents
If you’re single with no dependents, you may still wish to consider life insurance. It could help to cover any debts, such as a mortgage, and certain expenses, such as funeral costs, if you died.
Scenario #5: You have a mortgage with a spouse
If you and your spouse have a mortgage, it’s likely that life insurance is appropriate for you. In the event of your death, life insurance would help your partner keep up the costs of owning and running the home. You can take out joint life insurance which covers you both and can be cheaper than buying two separate plans.
If you have decided that you need life cover, or would like to know more, take a look at our Zurich life insurance page.