Why Do I Need Life Insurance?

To many, life insurance looks like an unwanted expense. However, it is a vitally important aspect of planning for the future of your loved ones.

The experts at Hilltop Finance often get asked, “why do I need life insurance?”. This article answers this question and explains how you can find the most suitable life insurance cover to suit you and your pocket.

 Do I Need Life Insurance?

As we go through life, we almost inevitably pick up assets and become responsible for dependents more often than not. When this begins, we should be thinking about what would happen to our belongings, our property, and our loved ones if we were no longer around.

Life insurance benefits include assurance that your policy will pay out a cash sum to your chosen beneficiaries if you pass away.

Your beneficiaries can use this amount to pay for your funeral, manage a mortgage, acquire necessary services, and alleviate any monetary issues that the relevant individuals may be left with after you’re gone.

You will likely need a form of life insurance at some point in the future, if not right now. Most mortgage providers will require life cover to ensure you can pay off the value of the borrowings.

Of course, the question of “why do I need life insurance?” is just the beginning. It would help if you also considered the types that are available and which might suit you best.

The main kinds of life insurance cover available include:

  • Term life insurance
  • Whole life insurance
  • Joint life insurance

 What Does Life Insurance Cover?

So, how does life insurance work? What does it cover, and how do you arrange the right kind with a life insurance company? How long does life insurance last?

To answer these questions, here is a brief overview of the main kinds you’re likely to choose between:

 Term life insurance

Term Life Insurance is a type of cover that you can purchase to cover you for a set amount of time. You can arrange term cover on a decreasing, level, or increasing basis.

  • “Decreasing” means you can pay less as time goes on (for example, to cover a shrinking mortgage total).
  • “Level” means you wish to keep payments the same.
  • “Increasing” means you elect to pay more over time (to grow with inflation and to make sure the needs of a growing family or the incurrence of additional expenses are covered.)

Whole life insurance

Whole life insurance is a type of cover that does just what it says – covering you from the moment you take it out right up until your death. 

The whole of Life Coverage means you’ll never have to arrange a new policy – and it also enables you to take out loans against the policy, potentially allowing you more financial freedom.

 Joint life insurance

This type of insurance covers two people at once – so, if one half of a couple passes away, the policy pays out. However, the surviving partner will need to arrange new insurance as they will no longer be covered.

Additional features of life insurance may include:

  • Free parent life cover
  • Over 50s life cover
  • Critical or terminal illness cover
  • Income protection

 Do I Need Life Insurance for a Mortgage?

Is it best to have life insurance with a mortgage? Absolutely. Term life insurance can be handy to arrange when you borrow to purchase a property. Many mortgage providers insist on life insurance coverage. 

For example, if you have taken out a 25-year mortgage, life insurance can be arranged to coincide with that 25-year term. So, if you pass away before your mortgage is paid off, the payout from your insurance will cover the amount remaining.

Which Life Insurance Is Best?

Choosing between policies can be a complex and time-consuming matter. Hilltop Finance is here to help you find the right cover. Our insurance specialists can help you to find a policy that is perfectly tailored to your needs.

Get in touch with our friendly and experienced team, and we’ll talk to you transparently about all of the available options to help you select your perfect cover.

So, if you need term, whole life, or joint cover – or a more specific type of policy – contact Hilltop Finance to inquire today.

Important information: Our website offers information about investing and saving, but not personal advice. If you’re not sure which services are right for you, please request advice from Hilltop’s financial advisers. Remember that investments can go up and down in value, so you could get back less than you put in.

Hi there!

We just need to take a few more details to understand what we can help you with and when is convenient for us to call you back. Gives you a chance to pop the kettle on ☕


What would you like our expert advice on?

Purple piggy bank with a pile of coins behind it


Pile of coins in the middle of a graph


Mobile phone showing a graph


pension advice



Is there any advice in particular?

Bar chart graph


Pension drawdown


Pension consolidation


Pension performance


Twisting gear

Not Sure


Finally, just pop your details here and we’ll be in touch