Should you still have a mortgage, then this will need to be paid off before any beneficiaries receive anything from your will. But further still, your lender can demand your house is sold in order to recoup the money, including demanding extra if the value of your home is now less than your mortgage. A life insurance policy can prevent this.
The same goes for any other outstanding debts you have, such as credit card bills or loans – these still need to be settled upon your death, though this doesn’t apply to student loans.
The other thing to consider is inheritance. If you take out a life insurance policy written in trust, then the lump sum left to the beneficiaries is considered separate from your estate, and therefore cannot count towards the inheritance tax threshold. As a result, the payment process is usually much quicker too.
Think about what debts you owe, or may owe in the future. If you have any, then it’s certainly in your interest to take out a life insurance policy, and the younger you do so, the cheaper your premium will be.