Is it really important to have life insurance?

The ultimate outcome of having life insurance is peace of mind. If you have loved ones who will be impacted by your death , life insurance can provide financial security so that they'll be taken care of.

At what age is life insurance worth it?

It really depends. As with any insurance, you're paying a premium in exchange for a guarantee that you or your loved ones will receive financial compensation in the event of a loss. Your 20s are the best time to find affordable life insurance, but this is because you're less likely to claim for it. Your 30s and 40s – generally speaking – are a time when many take on their biggest debt, in the form of a mortgage. Life insurance can offer a great deal of peace of mind around this time. If you were to wait until you turn 60 , the cost of insurance would be much higher, but this could be when you're more likely to need cover.

What is the downside of life insurance?

One of the biggest disadvantages of life insurance is the cost. While a policy can cost less than $5 per week for a healthy 40-year-old, the cost increases significantly the closer you get to 70. Life insurance is still an option from the age of 70 but it's much harder to find an insurer that will cover you. This is another downside, you really need to plan ahead to get the most out of your insurance.

Is it better to have life insurance or savings?

It really depends. First, you should work out how much life insurance you need and whether you can match that with a dedicated savings account. If savings still seems like a viable option, you can compare the benefits that come with life insurance and whether you'd be missing out on something important either way. One big advantage of life insurance is the advanced funeral benefit which pays out a lump sum to your loved ones to help pay for immediate expenses following your death, such as your burial or cremation.