Do you need life insurance?
Life insurance matters most when people depend on your income. Here’s who tends to need it, the main types, and when it’s worth reviewing.
Life insurance is really about the people who’d be left behind. Whether you need it — and how much — comes down to who depends on your income.
Who tends to need it
The strongest case is when others rely on your income: a partner, children, or a mortgage your family would struggle to cover without you. If nobody depends on you financially, the need is weaker.
The main types
| Type | What it does | Typically |
|---|---|---|
| Term | Pays out if you die within a set number of years | Cheaper |
| Whole-of-life | Pays out whenever you die | More expensive |
When to review it
In short
Life insurance matters most when people depend on your income — a partner, children or a mortgage. Term cover is cheaper and time-limited; whole-of-life always pays out but costs more. Review your cover whenever a major life event changes who’s relying on you.
Frequently asked questions
Who really needs life insurance?
The clearest case is anyone with people who depend on their income — a partner, children, or a mortgage that others would struggle to pay. If no one relies on your income financially, the case is weaker.
What’s the difference between term and whole-of-life cover?
Term life insurance covers you for a set number of years and pays out only if you die within that term — it’s usually cheaper. Whole-of-life cover lasts your whole life and pays out whenever you die, so it costs more.
When should I review my life cover?
After major life events: having a child, taking on a mortgage, moving house, or a change in income. These change how much cover the people depending on you would need.
Sources & last checked
- Do you need life insurance? — MoneyHelper (Money & Pensions Service)
- Life insurance — Association of British Insurers (ABI)
Last checked against official sources: 9 July 2026.