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What Happens if I Don’t Have Life Insurance?

We are all going to die at some point – we just do not know exactly when that will be, and it is not something that a lot of people like to talk about. When we die, there are invariably some financial implications – at very least, a funeral needs to be arranged and paid for.

If you have not left sufficient savings for your friends or family to pay for your funeral, and you have not already paid for it in advance, where is the money going to come from for this purpose? Whoever arranges your funeral will need a way to pay the costs. Life insurance can help with this by providing a payment to your beneficiaries in the event of your death.

What Does Life Insurance Cover?

If you are married, have children, have a mortgage on your home, or have debts that may be reclaimed in the event of your death, how will your loved ones handle the financial situation without you if you die? There are many potential advantages to life insurance, and it may provide much more than funeral expenses. Without it, your bereaved friends and family will be left to support themselves.

Here are some of the things that life insurance may help your family to pay:

  • Funeral costs
  • Your debts
  • Rent or mortgage
  • Bills – utilities, communications and so on
  • Your children’s ongoing education costs
  • Expenses for family holidays or educational trips
  • Childcare costs

A lump sum from your life cover may be used for any of these costs, or anything else your beneficiaries need. If you don’t have any kind of insurance cover for these costs, though, your family may no longer be able to maintain their usual standard of living.

More Than Life Cover

It isn’t only your death than life insurance may cover. You may also obtain a policy that includes cover for things such as trauma (a serious injury or illness such as a stroke or heart attack), total and permanent disability, and income protection if you are rendered unable to work due to illness or injury.

Without this cover, you’re on your own when it comes to covering the costs of a major accident or illness, and your dependants will have to find a way to replace your lost earnings if you can no longer work. If you don’t like the sound of that future, you may want to compare your options and look at your budget to see if life insurance is something you can benefit from.


Not everybody needs life insurance, but there any many people who can benefit from the financial support it provides in case of unfortunate events such as illness, injury, disability or death. If you don’t have life insurance, these costs will have to be paid some other way. For example, you might decide instead to open a savings account to be drawn on in this type of circumstance. Whatever you choose, it is sensible to ensure that your dependants will not be left to fend for themselves.

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