Here, we look at when you may, and may not, need life cover to help you decide if it’s right for you.
It’s worth considering life insurance if you have people who depend on you financially, such as:
Having life insurance means that your family will receive money after you’re gone. This money can help take care of them at a difficult time. The money could be used to:
Every family’s circumstances are different. It’s important to think about how yours would change if you were no longer around, as hard as that may be.
You may not need life insurance if:
If you’re not the main earner of your household, you may think you don’t need life insurance. But don’t overlook your contribution.
For example, if you’re a stay-at-home parent – would your partner need to pay for childcare so they could continue to go to work? According to the MoneyHelper, the average cost of sending a child under 2 to nursery in the UK is:
You may already have some life insurance through your employer. If so, check what’s included to see if you need extra cover.
Think about how much cover it gives and for how long. Does the term match how long you will need it for? You also need to consider what would happen if you changed jobs, as you’ll no longer be covered through your employer.
Talking to loved ones about financial arrangements after you pass away is a difficult subject.
It’s not something we like to think about, but it’s really important to be open and practical so you all know what the long-term plan is.
Start having conversations about how your family will manage financially if you, or your partner, passed away. It can help you understand if you should get life insurance – and how much cover is required.
If you’re unsure about what’s right for you, our protection advisers can help you decide.
The more practical discussions you can have with your family now, the better – it can make a difficult time just that little bit easier.
So, while you’re on the subject, you may want to make sure your family knows:
It’s not easy to think about life insurance and what will happen after you’re gone. It’s a selfless act to think of others without any benefit to yourself. But it can make a world of difference to your loved ones and give them one less thing to worry about.
All figures, unless otherwise stated, are from Sticky and Censuswide for HSBC. Total sample size was 2,008 adults. Fieldwork was undertaken between 2 to 8 December 2022. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).