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:
- 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.