Considering that the purpose of Life Insurance is to cover the lost income of a household’s breadwinner, or anyone with financial dependants, it stands to reason that Life Insurance isn’t necessary when the loss of that income wouldn’t pose a problem to anyone.
One of the major benefits of Whole of Life Insurance is that it runs (as the name suggests) until you die, or until you stop paying your premiums. It’s different to Term Life Insurance, which you can outlive. You might think, ‘what’s the point of a Life Insurance policy which you outlive?’
The answer comes in the form of another question; what’s the point of a Life Insurance policy that no longer serves its purpose? As time goes by and you develop savings, investments and other income streams, it may be the case that the impact of your death is no longer debilitating enough to make a Whole of Life policy worthwhile.
This goes for your children too. Parents want to see their kids prosper, and if the time comes when they’re able to look after you, Life Insurance premiums may become an unnecessary expense.
On the other hand, the size of your estate might shrink over time to the point where your death would no longer trigger inheritance tax, but would still be enough to cover whatever financial impact your death would have on your family.
A responsible insurer will take your situation into account when advising you about what Life Insurance works best for you, and advise the best possible arrangement. If you have no dependants or your financial needs would all be covered if you died, it may be the case that you simply don’t need it.