Get quotes from these life insurance providers and more.
Last updated: 19 January 2021
The best life insurance can give you peace of mind, because it will give your loved ones a payout if you die during the policy’s term. Having a lump sum would help your family manage the finances when you’re gone.
They could use the payout for mortgage payments, school or university fees. Or it could be used for repaying outstanding debts and recurring expenses. Otherwise, it could just be money for them to live off or enjoy.
Once you’ve decided whether you need life insurance, you can start looking for the best life insurance for your needs.
For the lump sum to be paid, you’ll need to meet the provider’s terms and conditions and pay your monthly premiums.
The best life insurance, UK wide, usually only covers you for death. You’ll need a different type of income protection – such as critical illness cover – if you want cover for illness or disability.
Every life insurance policy has its own terms and exclusions. But even the best life insurance companies usually don’t pay out if you die due to suicide, a drug overdose or as a result of a risky or reckless act.
When you compare life insurance, you’ll be able to find life insurance quotes for the life cover you're looking for.
You’ll need to find out about each to work out which type of cover is the best life insurance for you. Some of the most common types are:
Level term life insurance: This is the simplest life cover insurance. You choose the amount and policy term at the start. It pays out a fixed amount, regardless of when a claim is made, as long as it’s within the term of the policy.
Decreasing term life insurance: With this policy, the amount of cover decreases over time. It’s generally the best life insurance to cover debts like mortgages, which reduce over time. For this reason, it’s sometimes called ‘mortgage life insurance’. It’s usually cheaper than level term insurance and a good option if you’re comfortable with the amount of cover decreasing over time, although the premiums stay the same throughout the term.
Critical illness life cover: This insurance can be added to a life insurance policy. It covers you if you’re seriously ill or are diagnosed with a severe medical condition during the policy’s term. In most cases, critical illness cover pays out a fixed lump sum. The payout can be used to pay for private medicine, a holiday, or to help your family financially during your illness, especially if you can’t work.
Over 50s life insurance: This is for people aged 50 to 80 years old. With over 50s life cover, you don’t have to give a medical history. Anyone in the age range is guaranteed to be accepted. You pay for this kind of life insurance through fixed premiums until you’re 85 or 90, depending on the provider. After that, the premiums end, even though you’re covered until you die. Over 50s life insurance usually comes with a qualifying period that ranges from 12 to 24 months. If you pass away during this period, your family won’t get the lump sum payout, but the premiums you paid in will be refunded to them.
Whole of life insurance: As the name suggests, this kind of insurance covers you for your whole life. You pay a premium each month and it pays out a fixed lump sum when you pass away. With whole life insurance, the insurer invests your premiums into a fund. It spreads the investment across stocks, bonds, property and cash, and pays out from the same fund when you claim. But remember, your premiums might increase to cover the payout, if the investment fund performs poorly. But the amount of cover you receive will be the same.
Joint life insurance: This kind of life cover insurance covers two people together, usually a couple. It usually pays out just once, in a lump sum. This tends to be paid to the surviving person. But when that happens, they won’t be covered any more, and they’ll have to find a new life insurance policy if they still want cover.
Start by looking at your debts, your family’s needs and their lifestyle. This will help you work out how much life cover you need and how long you need it for. Once you’ve decided, you can think about doing a life insurance comparison to compare quotes.
Then, there should be enough left over on top to make it easier for your family to cover some of their other expenses when you’re gone.
Think carefully about how the situation might change if you weren’t around. For example, if you work part-time so you can look after your children, what would your partner do if you weren’t around anymore? They might need to pay for childcare, or they might need to work less. Either way, it would affect their financial situation.
The term of your life insurance policy should also be at least as long as your mortgage. This will make sure the payout covers the remaining balance on your mortgage.
|Your medical history|
|Your height and weight|
|Your smoking habits|
|Your alcohol consumption|
|The length of the policy you want|
|How much cover you want|
Remember that when you're looking for the best life insurance, UK insurers look at the chance of you unexpectedly passing away and base the price of your quote on this.
For example, a 30-year-old non-smoker with a clean medical history might pay less than a 45-year-old smoker with a medical condition.
Premiums for most life insurance policies are fixed, which means they never increase. It's a good idea to compare life insurance policies and understand the best life insurance companies are offering. You should base your decision on what they include. Find out more about how to make a claim on a life insurance policy.
Even with the best life insurance companies, you usually won’t be covered if you die due to suicide, serious self-injury, a drug overdose or a reckless act. Your cause of death must be covered by the policy if your family is to get a payout. You also won’t be covered if your payments aren’t up to date. You should read your policy booklet carefully so you understand the terms of conditions of your particular policy.
|Lump sum||This money might be to help pay off your mortgage, or provide your loved ones with a pot of money|
|Income||This could help your family pay their monthly bills monthly, including mortgage repayments or rent. This income payout usually stops at the end of the policy's term|
You will only get a lump sum payment if you take out a whole of life or an over 50s life insurance policy. You could choose from either option when you take out a term life insurance policy.
|If your death comes a short period before the end of your policy, an income is only paid for the months remaining on the term. If you choose a lump sum payout, your loved ones will get the entire amount in one go.|
|If you die early on in your policy’s term, an income will pay out for the remaining years. If you choose a lump sum, they get the entire payout as one payment.|
It might be harder to convince life insurance companies to cover you have health issues, or you might have to pay higher premiums. It’s a good idea to get as many quotes as you can from life insurance companies, until you get accepted.
You need to make sure you’re as accurate as possible when you answer the questions during your application, and when you compare life insurance. If you don’t answer truthfully, you might find your policy is invalid when you come to make a claim.
It can be the best life insurance for people with financial responsibilities like loans or mortgages. And, of course, it’s worth thinking about taking out life assurance cover if you have children or other dependants.
Sometimes people decide to get life insurance when they have a baby or move house. But it’s best to get it at the earliest possible opportunity. The younger you are, the healthier you’re likely to be, and insurers see you as less risky. If you’re healthy, your insurer’s less likely to have to pay out, so they’ll offer you a cheaper premium.
Only if your cause of death is covered in your policy, and you die during the term of the policy. Here is more on how life insurance works.
Yes, but you may find it cheaper to have one policy that gives you the exact cover you need.
Yes, but you both have to qualify for the policy and get accepted by the insurer when you apply. Compare joint life insurance quotes here.
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.