Why bother with Life Insurance
If you have a mortgage on your property then your lender will insist that you take out insurance to cover the cost of it if you die. This means that they will get the mortgage paid off.
However, unless you are in this situation, it may be tempting not to have any insurance. You may feel that it is a waste of money, giving a company some money each and you will not get any of it. However, there are some good reasons for getting out insurance.
Insurance will pay out when you die. If you have dependent, maybe a spouse or children then the money could help them. It could help to cover the cost of the funeral which could be really useful. It could also help to provide for the family.
It is a risk though. If you have only just started paying in when you die, the family will get a huge return from it, but if you have been paying in for a long time, you might feel you would have been better off investing that money in an account somewhere and you could have made more. However, you would not get the same peace of mind if you had chosen to do it that way and no one can know what the future will bring for any of us.
If you have no dependents, then life insurance is probably not so worth while, unless you have a mortgage and your lender have insisted that you have it. However, having dependents may make you feel that you want to make sure that they are properly cared for and so you may want to make sure they have money coming to them. If you already have a big chunk of savings, then you may feel that this will be enough for them. However, it is worth being aware that it can take time to get money when someone has died, as it has to go through probate and the names on the accounts have to be changed and so having an insurance payout could help to span that gap while the rest of the finances are being sorted out. This could be even more essential if there is a house to sell, as this could take months or even years and until it does the money will be locked up in it and therefore the dependents may not have any.