Life insurance provides for your survivors in the event of your death. For more information on life insurance, see articles Types of Life Insurance, Life Insurance Cover, Cost of Life Insurance, Making a Claim, and Terms, Conditions and Considerations. The pros and cons of life insurance are summarised below:
Pros
> Peace of mind that your survivors are provided for
> Provides financial protection for your dependents after your death or in the event that you become terminally ill
> Can provide cover in the event of a serious illness
> Regulations protect your consumer rights, e.g. set complaints procedure
> Can provide a sum of money as a cushion for your survivors after death
> Tax-free pay-out options available
Cons / Considerations
> Can be costly, especially if you suffer from bad health or are considered 'high-risk' for other reasons, e.g. a dangerous hobby
> No need to insure your death if you have no family or other dependents
> Range of different terms and conditions between providers
> You could outlive your insurance term and receive no financial benefit from your premiums
> A term life insurance policy will not provide you with better returns than a regular savings / investment account unless you die
