Who is the best life insurance provider?

May 26th, 2022
Who is the best life insurance provider?

Although we may not want to spend much time thinking about our own demise, it is important to do everything possible to guarantee the financial security of our loved ones should the worst happen.

The world of life insurance policies can be enormously complex, however, we’re here today to dispel some myths and equip you with all the information you need to know to find the best life insurance provider for your needs.

So, without further ado, let’s dive straight into it with a brief overview of the benefits of life insurance.

What is life insurance?

Life insurance is designed to ensure that your loved ones will be financially protected if you pass away during the term of your policy. You will have the opportunity to name the beneficiaries of your life insurance policy who will receive a lump sum payout should the worst happen.

Generally, your life insurance policy will only pay out in the event of your death, which is why it is also important to consider other types of income protection if you want to ensure your financial security in the event of illness or disability.

Are there different types of life insurance?

There are several different types of life insurance policy and generally, they can be condensed into three core groups.

With a whole life insurance policy, you won’t be limited to a specific term length. Instead, your chosen insurer will place all premium payments into a single fund until such a time that a claim is made. Premiums may be increased by your insurer if the fund underperforms financially, however, the payout amount your beneficiaries would receive remains the same.

Level term life insurance policies will only pay out in the event of your death if it occurs during the term of your chosen policy. If you were to die after the term of your policy expired, your beneficiaries would not receive a payout.

Decreasing term insurance is also known as mortgage protection insurance and will pay off your outstanding mortgage in full in the event of your death. With this type of policy, ensuring that you review the terms if your mortgage increases or you move to a different property is critical.

Do I really need life insurance?

Although taking out a life insurance policy isn’t something that you are required to do for any reason, it is certainly worth considering, particularly if your death would cause financial issues for your loved ones.

Depending on the type of life insurance policy you take out, payouts could help to pay off a mortgage, cover outstanding debts, compensate for the loss of your income, or be used to pay for everyday expenses.

While it can be tempting to assume that only the primary earner in each family should think about taking out a life insurance policy, there are many reasons why it is something everyone should think about. For example, when a young family loses one parent, the other is likely to incur higher childcare costs and/or experience a reduced household income. There are many different types of life insurance policy and the right one would help to ease the financial pressure felt by the living parent.

For individuals with no financial dependents, there may not be as many reasons to think about life insurance. In fact, if there is no one living in your home who is financially dependent on you, there might not be any point in taking out mortgage protection insurance to pay off your outstanding mortgage balance.

What is the best type of life insurance cover?

Your circumstances will help to inform which type of life insurance is the best option for you. There is no one-size-fits-all option. To give you a bit of a helping hand, let’s take this opportunity to run through some of the factors that make each type of life insurance cover different from the others.

Whole life insurance

With this type of life insurance policy, you will pay a premium every month which may increase throughout the term of your policy. Despite these potential premium increases, your policy will pay out a fixed amount should you pass away, providing you have continued paying each month.

As you’re guaranteed a payout and you are covered for life, this type of policy is typically the most expensive option. It is also essential to be wholly transparent about the medical history of your family and any pre-existing conditions you have.

Level term life insurance

In the event of your passing, this type of policy will pay out a lump sum to your beneficiaries if a claim is made when the policy is active. You will have the opportunity to select the length of your policy when taking it out, as well as the sum of money that will be paid out.

There are a variety of trusted insurers offering this type of policy, including Legal & General, HSBC UK, and AVIVA.

Decreasing term life insurance

Although your premiums will remain consistent throughout the course of your policy, the amount of money that will be paid out in the event of your death will gradually decrease. This is because this type of policy is designed to cover liabilities such as mortgages, which may reduce as time passes.

Again, there are numerous insurers offering this type of life insurance cover, including AVIVA, LV, and Royal London.

Critical ilness life insurance

If you become seriously unwell or receive a severe medical diagnosis during the term of your policy, you can receive a fixed payout which can help to cover a range of everyday costs if you need to stop working. This payout will be tax-free and can be used to pay for household bills including mortgages, private treatment, and more.

Each policy will only cover certain illnesses and diagnoses, so it is important to understand exactly what is and is not covered by your chosen provider. It is also worth noting that this type of policy will only pay out once and it will end in the event of a claim. Cover for this type of policy generally starts at £25,000.

Over 50s life insurance

This type of policy is designed for those aged between 50 and 80 and doesn’t require you to provide a medical history. Your premiums will be fixed, but this fee along with your age will be used to determine how much the policy will pay out after your death.

You can typically expect to pay more for an over 50s policy and the payouts your beneficiaries will receive will generally be significantly lower than with other types of life insurance. There are numerous insurers offering this type of policy, including Canada Life and Vitality.

Joint life insurance

Joint life insurance policies cover two people who are typically a couple. This type of policy will generally only pay out once in a lump sum and this payment will go to the surviving policyholder. Upon receipt of the payment, this person will need to take out a new policy if they still want or require cover.

Some insurers also offer joint policies that will pay out twice if both policyholders die during the term of the policy. However, it is worth emphasising that the second payout is likely to be lower.

Which life insurance provider should I choose?

The type of life insurance and the provider with which you choose to take out a policy will depend on your personal circumstances. Here are our top pieces of advice to keep in mind when conducting your search for the best life insurance provider in the UK.


The cheapest life insurance policy isn’t always going to be the most suitable option for you, however, you will want to strike the right balance between appropriate cover and the affordability of your preferred policy.

It is often beneficial to begin by thinking carefully about the needs of your family and any outstanding debts you have, including mortgages and loans. This information will help you to calculate the level of cover you require as well as the length of time you want your policy to run for. As soon as you have these figures to hand, you can start comparing quotes from different providers.


The Association of British Insurers has found that since the beginning of the Covid-19 pandemic, insurers have paid out more than £200 million [1] to victims of the virus. One claim on a policy worth £250,000 was paid out by the insurer the day after they received the notification of the death of the policyholder.

This highlights the fact that there are numerous respected life insurance providers available in the UK. The best insurance companies will pay out quickly in the event of a terminal illness diagnosis or death during the term of the policy.

Even the most comprehensive policies from respected insurance providers may not pay out if the policyholder dies by suicide, a drug overdose, or other reckless act. You will need to check each policy individually in this regard. Payouts also won’t occur if policy payments are not up to date. Remember, the details of your policy will be clearly outlined in your policy booklet, so it is important to read this carefully to ensure you fully understand the specific terms and conditions of your insurance policy.

How much should I pay for life insurance?

There are a number of different factors that will affect the cost of your life insurance premiums, including your age, your lifestyle, your salary, and how much protection you want. Prices can start from as little as £5 per month, with more comprehensive policies costing more than £100 per month.

When should I take out a life insurance policy?

Life insurance is something that all adults should think about, however, there are a number of key occasions when taking out a suitable policy is a particularly wise decision.

Purchasing a property is a milestone achievement and if you are buying with a partner, it is a good idea for both of you to take out a life insurance policy. That way, should the worst happen, you know the surviving partner will not need to worry about paying the mortgage. Welcoming children into the world is another key event that should prompt you to think about ensuring your little ones are going to be provided for in the event of your death.

Life Insurance Explained

We understand that times are difficult for many people up and down the country right now, so if you would like some free and trustworthy advice, Money Helper [2] and Citizens Advice [3] are two excellent resources that can help you to ensure your finances are right on track.

So much of life is uncertain, however, life insurance can give you the peace of mind that those closest to you will be properly looked after in the event of your death. The global coronavirus pandemic has prompted almost six million adults [4] in the UK to consider taking out a life insurance policy, so you’re in good company.

More than 60% [4] of the UK population is still not covered by an insurance policy, however as insurers paid out more than £6 billion [4] in critical illness, income protection, and life insurance claims in 2020 alone, now is the ideal time to start thinking about protecting your loved ones. The average monthly premium for £100,000 worth of cover is less than £11 [4], so a solid policy could be incorporated into your monthly budget with ease.

Why not start exploring your insurance options here at Free Price Compare today?

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