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Thread: Do you need life insurance?

  1. #1
    Join Date
    Apr 2005

    Default Do you need life insurance?

    Not everyone needs life insurance . But if your children, partner or other relatives depend on your income to cover the mortgage or other living expenses, then the answer is yes – you probably do want life insurance, since it will help provide for your family in the event of your death.

    What is life insurance?

    Life insurance can pay your dependants a lump sum or regular payments if you die.

    Term life insurance policies run for a fixed period of time – such as 5, 10 or 25 years. These kinds of policies only pay out if you die during the term of the policy.

    A whole-of-life policy will pay out no matter when you die, as long as you keep up with your premium payments.

    What isn't covered by life insurance

    Life insurance only covers death – if you can’t provide for your family because of illness or disability, you won’t be covered.

    Most policies have some exclusions (things they don't cover). For example, they may not pay out if you die due to drug or alcohol abuse, and you normally have to pay extra to be covered when you take part in risky sports.

    And if you have a serious health problem when you take out the policy, your insurance may exclude any cause of death related to that illness.

    You can buy policies which include other types of cover such as total and permanent disability and critical illness cover.

    Who doesn’t need life insurance?

    If you are single, or if your partner earns enough for your family to live on, you may not need life insurance. But, you may want to set aside enough money in savings to cover any funeral expenses.

    If you have dependants but have an employee package that includes ‘death in service’ benefits, you may not need additional life insurance.

    Death in service pays out a lump sum if you die while working for the company. Just check to make sure the benefits are enough to cover your family’s needs – if it’s not enough, you can top up with a life insurance policy. But do bear in mind, if you stop working for that employer, perhaps through ill health, you may lose the death in service benefits and may not be able to take out life insurance at that time.

    Keywords: life insurance, tax and finance, credit card tips,

  2. #2
    Join Date
    Feb 2013


    Good Article. I thought people must take life insurance policy in life because no body knows what will happen tomorrow. If the person is insured, then he will be on safer side. Your article must be helpful. Call 600 11 600 for more information

  3. #3
    Join Date
    Apr 2013
    Mumbai, India


    hey there,

    Thank u for the article , its really helpful to know why one should take up Life Insurance


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