Do I Need Life Insurance

Why take out life insurance?

Many of us assume you will need life insurance, but that's not always the case.

If you are young, free of debt, and independent you may not need coverage. If you do have any dependents, or if you do have any outstanding debts that could be passed on to your loved ones, you definitely want it.

Before taking out life insurance you carefully need to consider how much you need based on the amount of money you spend.

There are two types of life insurance:

"Whole life" insurance and "term life" insurance.

What's the difference?

Whole life is like owning. Whole life insurance provides death benefit, as well as the accumulated cash you have paid into the policy, including the cash you've paid and the interest it earned.

As long as you keep up with the premiums, these policies are guaranteed for life. Whole Life Insurance can be very expensive compared to other policies.

Term life is like taking out car insurance. It is a cheaper and more flexible alternative. The policy is good for a period of time. When that term is up, you'll need to buy new insurance, which will increase in price as you get older. Since the premiums are cheaper, you can invest the money you're saving and potentially generate an even better return than a whole life policy.

The different types of life insurance cover to consider are: