Life insurance is different for everyone. Depending on what stage you’re at in life, you (and if you have one, your family) will have varying needs. It’s not something you take out once and then forget about. Consider reviewing what you’re protecting and how you’re protecting at some of life’s major moments when you take on more financial responsibility. For example, marriage, the birth of a child, or buying a house.

Do you need life insurance at 25?

You should first consider life insurance not at a particular age but rather once you reach financial independence. When you have your first debt, your need for cover changes. Imagine you’re a 23-year-old with €10,000 in college debts. Life insurance can help protect against these debts and ensure you have a safety net in place.

Specified illness cover is another entry point into life insurance to protect yourself from the cost of having a serious illness in the future. This benefit pays a lump sum if you are diagnosed with an illness covered on your plan.

Do you need life insurance to buy a house?

The simple answer is yes.

You need life insurance when buying a home, whether that’s getting on the property ladder with a one-bedroom flat or buying your dream home with your partner. Either way, your lender will insist that you take out a mortgage protection policy.

If anything happens to you, the policy is designed to pay the remainder of your mortgage to your lender. If you have children, your family home will be paid for, but if you want them to get the benefits of your life insurance rather than the bank, you’ll need to consider a different type of policy, rather than relying on purely mortgage protection.

Life insurance for parents

It’s well-known that raising a child is expensive. There’s so much to consider from childcare to education, not to mind basic needs like food and clothes. Both parents could both be working full-time jobs and paying for childcare, mortgage, household costs, loans, and more.

Ask yourself: could one person cover everything with their income alone? Could they keep working and pay for childcare? They may need to reduce their hours, take on a part-time job that pays less, or even quit their job to look after the kids. Taking out life insurance helps look after their needs if anything were to happen to you.

Each time you have another child, you need to reassess the plan. As well, as you get older and your children are getting closer to financial independence, your focus may shift to their inheritance. Either way, life insurance can help provide peace of mind.

Life insurance for stay-at-home parents

If they’re a stay-at-home parent, how will you replace the other person’s earnings? A common life insurance mistake is to leave a stay-at-home parent uninsured, but you always need to think about both people in a relationship. One person may not have an income as they’re not working, but they are saving income that would otherwise be spent on things like childcare costs.

Single life insurance

If you’re a single parent, you can take out a single life insurance policy that pays out on death or critical illness. Think about how much money it might cost to cover your children’s food, clothes, healthcare, housing, education and other living costs until they’re financially independent.

Do you need life insurance at 50?

While nobody wants to think about why they might need life insurance, it’s important to work out the ‘what ifs’. Some people may have sick or elderly parents as dependents, or adult children with care requirements. If anything happens to you, who assumes the cost of their care?

It’s very likely that at the age of 50, you will have a different set of priorities than you did at 25, which means your life insurance needs will have evolved. You may still need life insurance, but your focus may shift from your children to your partner’s needs. You may have significantly reduced your debts but not want your partner to rely on a widower’s pension alone should something happen to you.

No matter what stage you’re at, Irish Life Financial Services are available to answer any question – big or small. Set up a chat with a financial advisor to discuss your personal situation and know that you can go back and revisit your policy at different life stages.