Is Life Insurance Worth It?

Seeking Advice
1

I’m 25 and not very familiar with life insurance. I’m unsure if it’s something I need right now, but it crosses my mind occasionally. My mum suggested I consider it because if I were to pass unexpectedly, she wouldn’t be able to afford a funeral. We grew up in tough financial circumstances, and she’s an unemployed single parent with a younger sibling to care for. I understand her concern.

I’ve heard life insurance is necessary if you buy a house, but I’m curious about others’ thoughts. Should I consider getting life insurance at my age?

2

Life insurance can seem unnecessary until it’s not. It often depends on your circumstances. I have it to ensure my partner would be okay if something happened to me. If I were single without dependents, I probably wouldn’t bother.

3

@Reese
It’s cheaper to get life insurance while you’re young. I got a policy in my mid-20s—£500k coverage for £18/month. Back then, I didn’t have a house or dependents, but now I’m in my 30s with a mortgage and kids. That decision saved me money long-term.

4

@Thane
Are you still paying £18/month for the same coverage?

5

Sidney said:
@Thane
Are you still paying £18/month for the same coverage?

Yes, it’s a fixed term policy. It’ll last until I’m 60 or 65, covering my mortgage if something happens to me.

6

@Thane
Thanks. I should look into this before it gets too late!

7

@Thane
What company did you get your policy with?

8

@Reese
The payout happens after you’re gone, so in a sense, it’s always a waste for the person paying the premiums.

9

Sage said:
@Reese
The payout happens after you’re gone, so in a sense, it’s always a waste for the person paying the premiums.

It’s not a waste if you want to provide financial support for loved ones after you’re gone.

10

@Neve
Sure, but if your partner moves on quickly, that money might not go to your kids as you’d hope.

11

Avery said:
@Neve
Sure, but if your partner moves on quickly, that money might not go to your kids as you’d hope.

You can avoid that by setting up a trust to ensure the money goes to your kids.

12

You don’t necessarily need life insurance for funeral costs. There are funeral-specific policies that can help with that. Life insurance is more about ensuring dependents are financially secure if something happens to you. If you don’t have dependents, consider critical illness or disability insurance instead.

13

I had life insurance with critical illness coverage. When I was diagnosed with a covered condition, it paid out a six-figure sum. That money paid off my mortgage, and now I’m living cancer-free and debt-free. It was worth every penny.

14

@Amal
Which insurer did you use, if you don’t mind sharing?

15

Sky said:
@Amal
Which insurer did you use, if you don’t mind sharing?

I had policies with Scottish Amicable and Legal & General. Both paid out quickly.

16

If the main concern is funeral expenses, consider saving up for that instead of paying premiums for years. Funeral plans might also be an option, though they’re less flexible than life insurance.

17

If you’re only going to get one type of insurance, income protection is more important than life insurance for someone without dependents. It’s designed to cover your living expenses if you’re unable to work due to illness or injury.

18

My sister didn’t have life insurance and passed away at 34, leaving behind a teenager. The financial strain could have been much worse without family support. Beyond the payout, life insurance can cover unexpected costs, like medical bills, home care, or even making you more comfortable during a terminal illness.