In the event that the worst happens, a life insurance policy gives you a peace of mind as your loved ones are looked after financially.
In the event of your death, this provides a lump-sum payment to your loved ones so they don’t have to face financial hardship.
Read MoreAs an add-on to life insurance, this policy also pays out if you obtain a permanent disability by injury.
Read MoreAs an add-on to life insurance, this policy also pays out if you obtain a permanent disability by injury.
Simply choose cover type and policy length you need
Provide information about you, such as your name, date of birth, etc.
You can choose an option which is best suited to you from displayed result and get covered
Before comparing life insurance quotes, you should consider following:
There are number of factors that determine the cost of life insurance, ultimately the insurer looks at the risk that they will have to pay out the large lump sum:
It is possible to find insurance cover from little as £5* a month, depending on your age and the policy value
You are not legally required to have life insurance cover, however, it will provide financial stability to your dependents when you pass away and in some cases when you are diagnosed with critical illness which stops you doing any work.
The cover you pick will entirely depend on your circumstances and your personal choice, you should consider how much lump sum you want to leave and what would it be for, would it only cover the mortgage or would you also want to cover the loss of earnings for the household.
When you compare a level life insurance policy you are comparing policies that pay out the fixed sum that you have chosen at any point of the term of the policy (usually the full amount will be paid out after year 1) This policy type is the most simple and easy to understand cover – The amount you receive will never change.
You can compare the prices of critical illness cover with level term or decreasing term or alternatively you can just take out critical illness cover to protect you financially if you are diagnosed with a life threatening or terminal illness.
Usually you are insured for a fixed amount that can be paid as a lump sum or paid monthly to you to cover any outstanding debts.
If you are very unwell and unable to work, you can make a claim on an integrated critical illness cover, your insurance policy provider usually pays out one lump sum to you and your policy would end. The insurance policy provider will not make any future payments to you or your loved ones.
Decreasing term cover is also known as mortgage life insurance and mortgage protection insurance which is designed to protect debts that decrease over time, such as your residential mortgage.
Comparing these policies will provide cheaper prices than a fixed term policy because the amount paid out by the insurer under this policy reduces with time. For example, if you pass away near the start of your agreed policy term, your loved ones would get more pay out compared to the end of your policy terms.
There are various other types of life insurance options available and your monthly premiums are based on your personal requirements and individual circumstances.
If you are married or in a relationship, you and your partner can take out a joint policy cover which pays out in the event of one of you passing away. In most cases its can be cheaper to have a joint policy than two single polices. However, it only pays out for the first death and cover will end once lump sum paid. So in the long run it could be more cost effective to take 2 single premiums that run alongside each other’s.
Is you are planning on becoming parents or you have recently become a parent, it is very important to think about the future. If one of you passes away could you maintain paying the mortgage, house hold bills and childcare or would you need to stop working to look after the child? Having a lump sum could ease the financial stress and still allow you to remain in your property and stay in work.
Any one aged from 50 to 79 can get a whole of life cover which doesn’t require medical assessment. There’s a short qualifying period and you can stop paying monthly premium when you are 85 or 90.
These insurance policies tend to be lower in value than a level or decreasing term and are primarily designed to cover the cost of a funeral and any immediate expenses. The maximum policy value tends to be around £25,000 but there are guaranteed acceptance schemes with no medicals required.
Unfortunately, not all insurance providers support pre-existing medical conditions which means when comparing pre-existing medical cover, you are only going to get quotes from a few insurance suppliers and you’ll also notice your premium will be higher than a normal policy.
If you have a pre-existing medical condition and didn’t want to pay the higher premiums you can still get a normal level term or decreasing term policy but you would need to exclude your existing medical condition from the policy and therefore you wouldn’t receive a pay-out on the stated conditions.
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.
"But nothing in this world is said to be certain, except death and taxes" Benjamin Franklin.
Unfortunately, death can come to us at any time, and for many of us, we want to ensure our loved ones financial needs are met.
Life insurance is an insurance policy that pays out in the event of the policyholder passing away. Its normally taken to cover mortgages, funeral expenses or a lump sum to be given to loved ones.
If you have dependents, particularly young children or a family then a life insurance policy is something that would be recommended. It can cover any financial commitments that you have such as a mortgage or provide lump sum which could give your loved one’s financial security
There are 5 “terms” which are the most popular and these are:
Normally taken out with a repayment mortgage to cover this cost. As the amount owed on the property reduces over time so will the pay-out, this is the cheapest option to take out.
This policy will pay a fixed amount of money at the time of death (as long as the policy is still active). You would select the amount that you want the lump sum to be and this would remain fixed over the term of the policy. This is normally more expensive than a decreasing term insurance policy
As the name suggests, it covers couples and will pay out once when the first partner passes away within the term of the policy
Will guarantee to pay-out upon death, even if that comes at a ripe old age of 100 plus.
This policy is designed for people who are aged over 50. Its pay-out is smaller as it’s designed to cover funeral expenses so the policy value is typically between £1,000 and £25,000
This will depend on your financial commitments and whether or not you want to leave a lump sum after these commitments have been met. As a minimum you should cover your mortgage and funeral costs and then depending on your budget add a cash lump sum too.
This is very much dependent on the circumstances surrounding your situation and what you would want to leave your loved ones. There is also a critical illness add-ons you could select, this will pay-out if a critical illness is diagnosed by medical professionals to help with financial matters during your treatment
The cost of the policy is based on a number of factors, are you smoking, your age, previous medical conditions, current health, the term type (Level, Decreasing, Joint, etc..), the amount needed to be covered, the length of the policy and also if critical illness is added.
It’s possible to get a policy from the age of 18. Most people think of getting a policy if they have a mortgage and / or dependents. Premiums prices increase as age increases.
Certain financial institutions will insist upon it. However, it’s considered a good judgment call to take one out, as death could come at any time, and without life insurance in place, your loved ones may struggle.
It is important to review the level cover periodically to ensure that the current policy meets all of your needs, you can take out a second policy, add to an existing one or cancel the existing one and take a brand new one. We would recommend that you review the policy cover if there is a major circumstantial change such as moving home (to cover the new mortgage if this has increased), getting married or having a child (to leave a lump sum).
It’s a tax-efficient measure where the money is paid out into a trust, and not considered part of the estate when relevant bodies calculate inheritance tax.
Yes, but it could cost more, as it’s viewed as a higher risk. The most common pre-existing conditions which most companies cover, but not limited to are; asthma, diabetes and obesity.
You must make sure to declare ailments when taking out the life insurance cover as a failure to be transparent could void it.
You can still take out a traditional life insurance policy, but the prices will be higher than a 30 year taking out the policy, and there are upper age limits for when the policy will expire, typically this is between 70 and 75 or there is over 50s plan, where the monthly price is a lot lower but the pay-out is also a lot smaller and commonly taken out to cover funeral expenses. However, as it is a lump sum, the beneficiaries are able to spend it any way they see fit
If you missed the payment, contact your life insurance provider and explain why it was missed and seek to make alternative payments.
Certain policies will allow you to make a claim if you’ve been diagnosed with a terminal illness and having less than 12 months to live
Many people believe that if you have death-in-service cover then you don’t need life insurance. This is a common fallacy as deat
Read More [+]*Life Insurance: £5 per month based on a 30-year-old non-smoker taking out £100,000 level term cover over 20 years (Aviva) - Prices correct as of January 2020
