If you do not have children, then you don't need life insurance.
Quite a sweeping statement Brendan.
Life insurance has two purposes:
- Pay off debt on death
- Replace lost income
Even if you have cover that will pay off the mortgage, you may have other debts that the surviving spouse may struggle to pay off. I also do a lot of cover for young couples who are saving for a mortgage. They take out the mortgage protection cover whilst saving, so if something happens to one of them (we can be in a car accident at any time), the funds are there for the surviving spouse to buy a home they would be unable to afford on their own.
Not everyone gets paid the same. As a couple, you enjoy a lifestyle based on joint incomes, not just your own. If one partner earns significantly more than the other, they may want to ensure that the surviving spouse can enjoy a reasonable lifestyle if they die.
Life cover at work is limited in 2 ways:
- The maximum lump sum payable is 4 times salary. Anything over that is used to purchase an annuity.
- What if you leave? The cover is linked to the job, if you leave the cover finishes too.
Then there's the comfort money. Losing your husband or wife is probably one of the most emotionally damaging times you will ever experience. Having a few quid to help you take some time out cannot be discounted.
The need for life cover should be looked at specific to your personal situation.
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)