• Age – If you are in good health, then life insurance will be cheaper if you are in your 20’s compared to in your 40’s for the same level of cover which is why it is advisable to start your cover as young as possible, but do take into consideration inflation and the cost of living from the start of your policy (for example if your policy started in 2020 the cost of living will be different in 2040)
• Health – Your current health has an influence over the cost of a life insurance policy, providers will ask for your height and weight to see if you are overweight, you will be asked about previous health issues and then about any family conditions that may be hereditary.
• Lifestyle – You are asked about the amount of alcohol you drink per week, the amount you exercise and if you have smoked in the past 12 months.

  It is possible to find insurance cover from little as £5* a month, depending on your age and the policy value

• Type – If the policy is decreasing term then the price will be lower because your pay-out reduces each year compared to a level policy that has the same policy value for the duration of the policy
• Where you live – This is known as environmental factors that will look at factors such as air quality.

Life assurance (Also known as whole of life cover) is a type of life cover policy which comes with no term limit. As long as you keep up with your monthly premium, the life assurance policy will always be paid on death regardless of your age when you pass away.

If you cancel your life insurance policy, your cover ends and should you pass away after cancelling your policy, the insurance company will not pay out as there will be no valid policy to pay out against. If you choose to cancel your life insurance policy during the cooling off period - usually the first 30 days from taking out the policy - you will receive your premiums paid to date back as a refund.

If, however, you cancel your policy after the cooling off period has ended, you will not be entitled to any refund on premiums paid and there may be an admin fee to pay as well. This varies depending on the provider, so it's something to check before deciding to cancel your insurance policy for cost-saving reasons.

The only exception to this rule is if you have a whole of life or permanent life insurance policy and have held it for a significant period of time (usually more than ten years). In this instance, you may have accumulated sufficient cash value that your insurance policy provider may be able to fund your premiums for a time, saving your money on your monthly payments without sacrificing your cover. Alternatively, your provider may offer you a surrender value, giving you some money back in exchange for cancelling your cover.

In order to get a definitive answer as to what your specific outcome would be should you cancel your insurance policy, you will need to speak with your provider.

Electing to take out a life insurance policy is always a personal choice and a key consideration is whether someone that the insured provides care or support to would require financial assistance in the event that the insured were to pass away. If a single person supports an elderly parent or relative, or has children that they are raising on their own, it is likely that a life insurance policy would provide them with peace of mind that those people would have sufficient funds to continue to live their lives in the manner to which they had become accustomed should the insured die during the term of their policy.

Single people who run a business or are part of a business partnership may consider taking out a life insurance policy, either as a requirement of a business loan, or to provide financial certainty for business partners or family members who may require this money to maintain the business should the insured pass away with financial responsibilities that may otherwise not be covered.

On the other hand, a single person with no dependents and no debts or significant outgoings such as mortgage payments may decide that there is little benefit in taking out a life insurance policy as they have nobody to benefit from the payout in the event of their death. The exception to this would be if they were planning for the long term and saw the benefit in taking out a life insurance policy while they were young, healthy and unencumbered by debt and additional responsibilities.

A "no questions asked" life insurance policy is also known as guaranteed life insurance, as anybody who can afford to take out such a policy will be eligible, regardless of their age, medical history and occupation. These types of policy generally have a lower payout and higher monthly premiums than an ordinary life insurance policy but may represent a good choice for people in risky occupations with low personal savings who wish to ensure that their dependents are financially secure in the event of their death.

It is worth noting, however, that although no questions are asked at the outset, payouts will only be awarded should the insured die as a result of a condition or event that is covered by the policy. For example, the nominated beneficiary of someone who is chronically depressed and suffering from mental health issues who chooses this policy on the basis that they do not have to answer medical questions will not be eligible for a payout if the cause of their death is determined to be suicide as this is an exclusion across many life insurance policies.

For someone who works in a low-risk occupation, has no or reasonably few existing medical issues and is under 50 years old, a standard policy is likely to provide greater protection at a significantly lower premium, so it is always worth comparing the level of cover and the monthly price of a variety of policies before selecting a guaranteed life insurance policy simply to avoid the need to answer medical questions at the outset.

If you are over 50 years old, you become eligible for an over-50s life insurance policy which provides whole of life cover at a fixed monthly cost, again without the need for a medical examination. This operates in a similar way to a guaranteed life insurance policy so it would be sensible to compare both options in order to select the one that offers best value for money and the right level of payout for your personal circumstances.

What is the application process for life insurance and what information do I need to give?

The application process for taking out a life insurance policy is simple. You need to choose the type of policy best suited to you. Do you want a single or joint policy, and do you need whole of life insurance that guarantees a payout on your death, regardless as to when that happens. Alternatively, do you need financial certainty for a defined term - for example, while you are paying off a mortgage or while you have dependent children at home? If you choose a term life insurance policy, you will need to decide whether you want a level term policy where the payout remains the same for the whole of the policy, or a decreasing term where the payout amount reduces annually in accordance with a reduction in outstanding mortgage payments or correlating to a reduced requirement to pay for childcare and other necessities.

Once you have selected the term of your policy, you need to decide the payout amount that you would require from the policy. In most cases, this is calculated based on your outstanding debts and financial commitments and potentially includes a buffer based on your salary for a predetermined period to ensure that your beneficiaries would be able to maintain their lifestyle should you no longer be there to provide for them. This is a vital step of the application process as setting the figure too high could result in unaffordable monthly premiums whilst setting it too low could leave your loved ones in financial difficulty in the event of your death.

You will need to answer a number of questions about your health, occupation and lifestyle when taking out a life insurance policy, unless you have opted for a guaranteed life insurance policy. These will include whether you smoke, drink alcohol or take recreational drugs, have any pre-existing medical conditions, your height and weight, hobbies and fitness level and your income and outgoings, including mortgage and debt repayments. The answers to these questions will allow the insurance provider to determine the level of risk that you pose to them and will aid them in determining the level of cover that they can offer you, and the price of your monthly premiums to provide that cover.

Once you and the insurer are happy that all information provided is accurate and that the monthly premiums are affordable, you will be able to take out the policy, which will only end when cancelled by you or in the event of your death.

There is no legal limit to the number of life insurance policies that any individual can hold and it is quite common that somebody who has a limited amount of life insurance provided via a workplace group life insurance policy may choose to "top up" their personal level of cover by also taking out an individual life insurance policy to ensure that their family would be adequately provided for in the event of their death.

Others may choose to set up multiple life insurance policies to cater for different outcomes, for example, a declining term life insurance policy aimed at clearing their mortgage and any outstanding debts, with another whole of life policy with a payout amount designed to provide financial security for their dependents. They may choose to have multiple life insurance policies with a different nominated beneficiary on each, should they choose to use this method to leave a legacy or inheritance due to a lack of personal savings.

There are many reasons why someone may choose to hold multiple life insurance policies, but it is always sensible to consider the reasons for doing so, as it is likely to be more cost-effective to hold only one policy that caters for the most likely eventuality with a carefully determined payout amount and term based on your personal circumstances.