Do I need life insurance?

There are various types of life insurance cover to choose from, so it’s important to find the right policy for your individual circumstances.

Term life insurance tends to be the most popular type of life insurance, and as the name suggests, covers you for a specific term, so is often taken out alongside a mortgage. Term life cover will only pay out if you die during the agreed term, so you won’t receive a lump sum or refund if you end up living longer.

Whole life insurance covers you for the rest of your life, as long as you continue to pay the monthly premiums, but as you’re guaranteed a payout, premiums can be expensive.

Find out more in our guide to Different types of life insurance.

Life insurance will usually only pay out in the event of death. Some policies provide a terminal benefit, meaning they will pay out early if you are diagnosed with a terminal illness. Some insurers will also offer you integrated critical illness cover for slightly higher premiums. Find out more about how critical illness cover works in our guide to Everything you need to know about critical illness cover.

Most life insurance policies do not cover certain causes of death, such as those resulting from drug or alcohol abuse.

If you have been diagnosed with a serious illness then a basic life insurance policy may also exclude causes of death related to this illness. Make sure to go over the terms of your contract carefully so you understand exactly what is and isn’t covered.

Author: wpadmin

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