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93-95 Gloucester Place,

London W1U 6JQ, United Kingdom.

Unit 4 Arlington Court,

Business Park, Stevenage SG1 2FS

Do you need life insurance?

Nobody likes to think about their own death, but it’s something you will have to do when considering whether to buy life insurance.

But the question is, do you actually need to buy life insurance?

If you don’t have a partner or children

One of the main reasons to buy life insurance is to take care of your spouse, partner, and/or dependent children when you die. Life insurance can cover the cost of your funeral and also give your family money to live off and pay bills.

Obviously, this won’t be a concern if you are single without any children, so buying life insurance isn’t a must. However, you can still take out life insurance to cover the cost of your funeral or to pay inheritance tax.

Dual earners

Many people buy life insurance cover because their partner doesn’t work and they want their partner to be able to continue living and paying bills after they die.

This may not be necessary if you both work, but you should consider whether your partner’s salary is high enough to support them without your salary on top. If not, it’s best to take out a life insurance policy.

Stay-at-home parents

If you are a stay-at-home parent while your partner works, buying life insurance cover is usually a good idea because it can be used to pay for a childminder or nanny after you die, unless your partner could afford to stop working.

Sole breadwinners

If you are your family’s sole breadwinner, buying a life insurance policy is a must.

If nobody else in your family is working, it’s very unlikely they will be able to afford to pay for things like rent or a mortgage, or any other expenses such as food and clothes.

What if you have death-in-service cover?

Death-in-service is life insurance that is sometimes paid for by an employer. It pays out if you die while still working for that particular employer.

You shouldn’t see death-in-service cover as an alternative to buying your own life insurance policy since death-in-service usually pays out less and it only works if you are still working for that employer when you die – if you lose your job or change jobs, you will lose the cover.

How much life insurance cover do you need?

The life insurance cover you need to buy depends on many factors, such as if you have a partner or children, how many children you have, and what the insurance pay-out needs to be spent on, such as a mortgage and other household bills.

You also need to consider your current financial situation too since you might not be able to keep up insurance payments if you take out a policy that is too expensive.

Keeping your policy up to date

It’s worth noting that a life insurance policy you take out today might not still be suitable in the future. You might, for example, have more children, or move to a different sized house with lower or higher mortgage payments.

If your situation changes considerably, you should check your policy to ensure it is kept up to date and still suitable for you.

Need help on finding the right life insurance policy?

Oracle Consultants can look at your situation and advise you on the best life insurance policy for you. We’ll find you a great choice of policies so you can buy the one that’s right for you.

Get in touch with an Oracle consultant.