What is life insurance?

Life insurance is a pot that you add to that produces a lump sum if you die or are injured. It’s a contractual policy that you can put in place, of which you pay into on a regular basis.

Do I need it?

It depends. It’s a safe bet to have life insurance but we appreciate it’s not something everyone wants to pay for as a young adult. 

If there is someone that depends on you for money such as a child or your children then it’s a good idea to insure yourself because if you were to pass away they may well be in a spot of bother financially, however if you have insurance they are likely to have financial stability, to some extent, from the payout. 

Why should I take out life insurance?

It’s a general assurance. If something happens to you, there’s a financial plan in place to support those affected by your death, i.e. children, family or partner

How much is it?

It can vary; it could be as cheap as 1p. The price you pay for a life insurance policy is ultimately up to you, what insurance companies will offer you will depend on a number of factors, such as:

  • Age
  • Job – some professions are riskier than other
  • Health – any previous or current medical conditions as well as your weight
  • Lifestyle – for example, if you have a passion for extreme sports
  • Whether you’re a smoker or not
  • The amount of money you are able to pay in regularly

It’s worth shopping around because different companies will provide varying results and request different information.

Info sourced from here and here.