Compare life insurance
life insurance is designed to pay out a sum of money to your loved ones in the event you die. This is to give you peace of mind that basics such as your mortgage, child care costs and even funeral expenses, are taken care of when you’re not around.
What is life insurance?
Life insurance, also known as life cover or life assurance is a way to help protect your loved ones financially if you were to die during the length of your policy.
Please remember that life insurance is not a savings or investment product and has no cash value unless a valid claim is made.
You choose the amount of cover you need and how long you need it for and you can pay your premiums monthly or annually. In return, your family has the reassurance of knowing that if you died while covered by the policy they could receive a cash sum pay out if a valid claim is made. They could use this to help with household bills, child-care costs or covering mortgage payments.
Our life insurance comparison tool
Do I Need Life Insurance?
Typically life insurance is a good way to ensure that your loved ones are taken care of financially when you die. Generally you should ask yourself:
- Would my death have a financial effect on my family?
- Would my family be able to support themselves without my income?
Life insurance can be ideal for many people as you can specify whether you want a ‘lump sum’ to be paid out or regular payments.
If you’re the ‘breadwinner’ in the family then life insurance should certainly be considered, however some families who have two partners working might not feel life insurance is good for their circumstances. Sometimes though, dual earners can get excellent discounts on ‘joint life cover’ and should be at least explored to see if its applicable to their needs.
As we’re all different and have a different set of circumstances only you, yourself will know if a personal life plan would help your family or not.
Types of life insurance
You have a choice of life insurance policies:
- Term life insurance – you’ll be covered for a certain period of time
- Decreasing term life insurance – your premiums decrease yearly, usually matching up to your mortgage repayments
- Whole of life insurance – a bit more expensive but this will cover you for the rest of your life
- Convertible life insurance – you’ll be on a fixed term policy that allows you to switch to a whole of life policy when you reach the end of it
Who should think about getting life insurance?
Less than a third of adults with children in the UK have life insurance. Those with loans, mortgages and financial dependants should consider getting a policy. Although it’s common to get a new policy after a major life event, it might be a good idea to buy when you’re young and healthy as the premiums could be cheaper.
If you’re a home owner, your policy isn’t tied to your mortgage, so it’s still worth comparing your options to see if you can save on an existing policy.
Which life insurance cover is right for me?
When it comes to life insurance policies, you’ll have some of the following to choose from:
Level-Term : Which will leave a lump sum in the event of your death. Commonly chosen by those looking to provide protection for things such as child care costs which importantly could help maintain your loved ones lifestyle.
Joint life policies: Which could be a good idea for couples who share financial commitments. These can be cheaper than two separate policies. However, it’s worth remembering that these policies end once the first partner passes away.
Over 50s plans: These tend to offer a smaller payout to cover things such as funeral expenses, but the premium is guaranteed for life. These usually won’t require a medical as most are calculated on a statistical risk.
Whole of life insurance : This type of cover is as it says on the tin – covers for you for life. It’s good in the way that if your health deteriorates then your premium won’t be affected. However they are often more expensive than other policies.
Life Insurance Money Saving Tips
Typically the best piece of advice is to get a life policy as young as possible. The older you are the higher premiums you will face, as you’re more likely to make a claim. Equally as you age, you’re more likely to face health issues, which obviously means obtaining insurance that little bit harder.
Some insurers will exclude people based on ‘pre-existing health conditions’, this can range from epilepsy, heart conditions, strokes, cerebral palsy and so on. As each insurance provider has a different set of rules, you will have to shop around to find the right quote for you.
You will also need to remember that ‘switching’ insurers is quite a common thing to do, just like you would for car insurance. Sometimes you can get great deals if you simply shop around. This type of tactic is certainly applicable for people who purchase limited term policies.
Speaking of time fixed policies, these tend to be the ‘cheapest life insurance plans’ on the market in the UK. If you can’t afford a whole life policy, then term insurance is probably the best way to go. If you’re unsure about which level of cover is right for your needs, remember you can always seek professional advice.
How much does life insurance cost?
The price is based on your age, how much cover you want, how long you want it for, and your medical history.
Is life insurance guaranteed to pay out?
Only if your cause of death is covered in your policy, and you die during the term of the policy.
Can I have more than one life insurance policy?
Yes, but you may find it cheaper to have one policy that gives you the exact cover you need. Use this comparison to get quotes to find the best price.
Can I get a joint life insurance policy?
Yes, but you both have to qualify for the policy and get accepted by the insurer when you apply.
Can I still get life insurance if I have poor health?
You may find it harder to get cover if you have any health issues. Get as many quotes as you can until you get accepted for the cover you want.
Who do we include in this comparison?
We include unsecured loans you can get in the UK from our panel. Like other comparison sites, we make money when you click through to a product or service, or go on to purchase it after visiting our site. If you use one of our broker services, we make commission after you buy a product, but it doesn’t cost you anything extra. Our comparisons are free for you to use and you get the same or a better deal than going direct.