What is life insurance?

Life insurance is a type of insurance policy that pays a financial sum to your loved ones if you pass away.

There are different types of life insurance policies, including whole life cover and critical illness insurance – so you can find one to suit your needs.

Reasons why you might need life insurance

If you have people who depend on you financially, you may want to consider life insurance.

Knowing your loved ones will be covered financially can provide some comfort. Every family has different circumstances. And, as hard as it may be, it’s important to consider how yours would change if you weren’t around.

For example, you may have:

A partner who relies on your income or household contributions
Children or young dependents
Dependents who you care for

Having insurance means your family would receive money to help them at a difficult time, which could:

Pay off debts, such as a mortgage
Cover new costs like childcare
Replace your income so your family can continue paying household bills

Reasons you may not need life insurance

You may not need life insurance if:

You’re single with no dependents
You already have enough life cover in place
Your partner earns enough money for your family to live on and can afford to cover any new or additional costs

If you’re not the main earner in the family, that doesn’t mean your contribution should be overlooked. For example, if you’re a stay-at-home parent, your family may need to pay for childcare if you are no longer here.

Speak with your loved ones

It can be a difficult topic, but talking to loved ones about financial arrangements after you pass away is important.

Being open can help everyone understand what the long-term plan is. It can also help you decide if you need life insurance and how much cover you may need.

If you’re unsure about what’s right for you, speak to one of our representatives.

Things to consider

Having practical conversations with your family can help make difficult times a little bit easier. While you’re talking about life insurance, you may also want to make sure your family knows: