For the purposes of this article life ‘insurance’ and ‘assurance’ are interchangable terms.
You might not know this but it’s not a legal requirement that you actually have life assurance. Of course, when you take out a mortgage to buy a house you’ll be steered towards getting life assurance in case you die or become incapacitated etc but you don’t have to have it.
I didn’t actually know this until a few months ago, and I’ve had a mortgage for close on 30 years now. But does knowing this information make any difference?
To me, no. It makes sense to have something in place that provides financial cover for my nearest and dearest should anything happen to me. Others prefer to spend the money they pay out on life assurance on other things.
A question here is ‘How much life assurance do you need?’. It’s possible to have more that one policy and each policy can be tailored to do specific things and also insure against specific risks. For example there are insurance policies that pay out against death, or critical illness, or the inability to continue paying for a mortgage due to loss of employment etc.
They all have their uses !