When do we NEED Life Insurance?

The answer varies for everyone; at times, we need a lot and at the best price we can get and at others times of life we don’t need it at all. So, when do we need it?

The answer to this question, is that we need the cover when we are at some sort of ‘risk’. Let’s explore that further because I’m not talking about the ‘risk’ of dying, which we all have at any age, but instead I’m talking about the ‘risk’ of leaving those we have around us behind with any sort of burden.

As advisers when we meet with our clients we ask many questions to work out, firstly, do you need life cover and secondly how much is enough? Things that affect this answer are:

• Do you have small children that rely on you for their upbringing and ongoing education?

• Do you have a mortgage at the bank, that the bank would expect to be paid should you pass away?

• Are you the income earner in the household and if you were to die, how would the family carry on and pay the bills?

• Does your Income need to be replaced for several years should you die, so that your immediate family can continue their current lifestyle?

• Do you need to leave provision for your final expenses, so that family do not have to worry about this?

• If you have a business partner, do you need Life Insurance that provides funds to pay out your shareholding to your family?

• Do you have business debt that would need to be paid back should you die?