Life insurance seems to have become something of an automatic decision for many people, and indeed there are often good reasons for getting it.
No one wants to see their dependents left without enough money after they are gone.
Even so, it isn't for everyone, and at the very least you should consider both your reasons for getting insurance and exactly what you are buying.
A Good Reason The best reason for taking out a policy is that it will leave your dependants with money to meet expenses, bills and living costs in the period after your death.
In fact, it is the only really valid reason for taking out life insurance.
What that means is that, if you don't have dependants, if your children are all grown and your partner earns enough to live, for example, you should seriously consider whether you need the extra cover.
An issue connected to this is that you should almost never buy life insurance for groups such as children, who are without dependents themselves.
They will benefit far more from you buying more insurance for yourself.
A Bad Reason Some people buy life insurance as an investment, particularly as a way of leaving an extra sum to beneficiaries of their wills.
Although you can do so, it is not particularly effective in this regard, providing a very poor return on investment over the long term.
What Do You Need? A great many people buy more than they need.
Consider honestly how much your partner, children or other dependants would need when buying life insurance.
Consider too whether you really need a whole life plan.
If your children will be grown ten years from now and fending for themselves, might a ten year plan not be a better bet? In particular, avoid separate accidental death insurance when selecting a policy.
If you have enough life insurance anyway, then extra money in the event of your accidental death achieves nothing but higher premiums.