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People are sometimes confused as to whether they need life insurances and often even more confused as to how much cover is required. So, what’s the simple answer? In truth, there isn’t one!

For example, there is a common misconception, that if you have a mortgage you must have life insurance – you don’t, although in many cases it’s certainly advisable. Frankly, the blunt question I put to people when deciding on this matter is “if you die, financially who would care”?

If you are single with no children, the answer is often no-one. Whilst your friends and family would no doubt grieve your departure, your death doesn’t negatively financially impact them, therefore life insurance isn’t usually necessary and let’s be honest, there are probably better things you can spend your hard-earned cash on. By contrast if you have a partner, children or others who are financially dependent on you, not having something in place could have catastrophic consequences.

It’s generally accepted that it’s a good idea to have enough life insurance to repay at least the mortgage. However, often we don’t see the need for insurance over and above this. Thinking logically, your mortgage is just one of several monthly bills, so what happens regarding the utility bills, childcare fees, food shopping, petrol, car maintenance etc.

Stay at home parents are often overlooked too, with many couples believing they only need life insurance for the income generating parent. The death of a stay at home parent can have serious financial implications for the entire family. Consider how different life would be for your family if that reliability and stability was no longer there. Again, when things we take for granted change, so does the world around us, you may need to consider changing your working hours, employing additional childcare or potentially giving up work altogether.

There are multiple ways of arranging cover, with policies available that pay out lump sums or a regular income. Many providers now offer multi-benefit options, meaning you can tailor the cover you need whilst only going through a single application. The right levels of cover are unique to your situation and that’s why we believe it’s always a good idea to discuss your requirements and options.