6 questions to determine if you need life insurance

Do you often wonder if life insurance is something you need or if it’s just another unnecessary expense? It’s a common concern, as many people are unsure about whether they actually need cover. But it’s never just a case of taking out a policy without considering your individual circumstances. Here are six questions to help you work out if you need a policy:

1. Do you have dependents?

 If you have people who rely on you financially, then you should definitely consider cover. This can include young children, a spouse who relies on your income, or aging parents who may need financial support.

Even if you don’t have dependents now, it’s still wise to think about the future. If you plan on having children in the future, buying cover now can help ensure they are supported after you’re gone.

2. Do you have debts?

It’s natural to accumulate debts over time such as a mortgage, credit card debt, or any other outstanding loans. However, these obligations can be passed on to your family members or co-signers if you do not have enough assets to cover them. Thankfully, a life insurance policy can provide the necessary funds to pay off such debts. That way your loved ones can avoid any hardship after you are gone.

You can also buy a policy to protect your mortgage. This is often known as decreasing term insurance, where the payout decreases over time as you pay off your mortgage. The policy lasts for a set amount of years, so it can be aligned to your mortgage term.

3. Do you have savings and investments?

If you have a substantial amount of savings or investments that can support your loved ones financially in case of your death, then you may not need as much cover. Still, it’s best to evaluate the stability and of your savings. Are they enough to cover your family’s living expenses, mortgage payments, debts, and future financial goals?

4. Do you have a business?

Owning your own business is a whole other level of responsibility. But should you die , your business partners, employees, and family may be left in a difficult situation. Worst case scenario, they may be forced to sell the business if there are no funds available to keep it running.

This is where having can can once again provide the cash to keep the business afloat in your absence. Not just that, it can help ensure your loved ones are taken care of going forward.

5. What is your age and health status?

Age and health both play a massive part in determining the cost of your policy. Generally, the younger and healthier you are, the more affordable your premiums will be. If you’re young and in good health, now might be a great time to lock in a policy at a lower cost.

On the flip side, if you’re older or have some health issues, it may be more challenging to find affordable cover. However, that doesn’t mean it’s impossible. There are still options available for people of all ages and health conditions.

6. What are your long-term financial goals?

Take a moment to think about what you want to accomplish in the long term. If your financial goals are important to you, then getting life insurance might be a smart move to secure your family’s future.

Whether you want to leave an inheritance for your children, support their education, or ensure your spouse can maintain their lifestyle after you’re gone, having a life insurance policy can help you achieve these goals.


Determining if you need life insurance involves looking at your individual circumstances and evaluating your financial situation. If you have dependents, debts, a business, or long-term financial goals, then it’s likely that purchasing a policy is a good idea. Even if you don’t have these factors now, thinking about the future and planning ahead can help protect your family in case of unforeseen circumstances.