Conduct a comprehensive life insurance comparison using our…
Life insurance is a type of policy which provides your loved ones with a cash pay out if you were no longer around.
There are various types available to meet differing needs and the cost of each policy will depend on your individual circumstances.
Making a claim is a simple process and the pay out can be used by your loved ones for whatever they wish.
What is life insurance and why is it important? Find out all you need to know, watch our short video.
Life insurance is essential to help secure your loved one’s financial future if you were no longer around to provide.
The proceeds from a life insurance policy can be used to help towards many different aspects of life.
Life insurance involves making monthly payments (known as premiums) to an insurer who will pay out a cash sum if you pass away while the policy is in place.
The value of the pay out received will depend on the type and level of life insurance cover you arrange at application.
Depending on the type of life insurance you have in place, it may expire within a set period of time, (known as the term).
In this instance, if you do not pass away within the set term, no pay out is made. However, there are life assurance options which guarantee to pay out.
For more information read our in-depth article on how life insurance works »
There are a variety of life insurance types each one tailored to meet a different need.
The policy that’s best for you will depend on what it is you want to protect.
Term-based life insurance
Level term life insurance provides a lump sum pay out upon your passing.
The value of this pay out does not change throughout the life of your policy making it ideal for helping cover an interest-only mortgage, living costs, replacing an income or leaving an inheritance.
In contrast, decreasing term life insurance provides a lump sum pay out but the value of this sum declines throughout the policy term, making it ideal for helping cover a repayment mortgage.
Both of these policies last for a predefined term and if you do not pass away within this time frame, the policy expires and no pay out is issued.
Whole of life insurance is a type of cover which lasts for the rest of your life and guarantees a pay out when you pass away.
This option tends to be well suited to those in later life who are in good health.
This is because if the policy is in place for a long period of time, it is possible to pay more into the policy than the sum assured.
An over 50s plan provides guaranteed acceptance for all UK residents aged between 50 - 85 with no medical information required.
As a result, it is ideal for anyone in this age bracket who is experiencing health issues, however, the maximum sum assured is significantly lower than other forms of life insurance.
Family income benefit
The final and less well-known type of life insurance is family income benefit (or FIB).
Instead of paying out a single lump sum, FIB will provide your loved ones with a tax-free monthly income for the remainder of the policy from the date you pass away.
It is ideal for helping replace a lost income to cover day-to-day family living costs.
Finally, it is possible to have multiple policy types in place if required.
Generally speaking, life insurance policies cover all manners of death.
Regardless of whether death occurred as a result of an accident or natural causes, it is possible for a valid claim to be made.
Although, occasionally, there are time frames for which a policy must have been in place before a claim can be made, (for example policies that cover suicide may not pay out if death by this cause occurs in the first 12 - 24 months).
Policies that cover suicide will also include a suicide clause of 12 - 24 months. This means that the life insurance policy is invalid if death occurs as a result of suicide within this time frame.
The pay out received from a life insurance policy can be used for whatever the beneficiaries deem fit.
At Reassured we provide life insurance policies from just 20p-a-day.
Although, the exact cost of life insurance is dependent on each individual applicant.
Life insurance premiums are calculated based on the risk to the insurer, taking into account:
The underwriting process will determine the level of risk you pose to the insurer and price your premiums accordingly.
Those posing a higher risk to the insurer will pay a higher premium for their cover.
The table below shows example premium prices of some popular policy types.
Quotes are based on a non-smoker, in good health, with a 20-year term and £100,000 of cover:
|Age||Decreasing term cost per month||Level term cost per month|
The average cost of life insurance in the UK is currently £38.15 a month*, according to internal research carried out by Reassured.
We calculated this average premium price from 142,576 term life insurance policies, sold between 08/09/21 - 08/09/22 with an average sum assured (cover amount) of £151,972.
Factors such as the age of those who have life insurance in place will influence this average cost.
The actual cost of your policy will depend on your personal circumstances, taking into account the aspects mentioned above.
The table below shows the average cost of life insurance for some policy types:
|Level term||Decreasing term||Whole of life||Over 50s plan|
|Average premium cost||£38.23||£38.07||£178.30||£29.65|
The amount of life insurance you require will depend on what it is you are looking to protect.
For those looking to cover a mortgage alone may only require the outstanding value of their mortgage.
Whilst those with a mortgage and children may need to take into account this balance plus how much their dependants will require until they are financially independent.
Taking into account all the aspects within your life you are looking to protect (mortgage, dependants, funeral costs, inheritance) will allow you to determine exactly how much cover you need.
It is also possible to change the amount of cover you have in place without the need for additional underwriting by invoking a special events option^.
This allows you to increase your cover amount if your circumstances change, such as buying a bigger house or having more children.
Whilst your premiums will increase to accommodate for the new cover amount.
Unfortunately, with term-based life insurance, outliving your policy will not result in a pay out being issued.
With regards to whole of life assurance and an over 50s plan, it is not possible to outlive your policy as cover lasts for life.
If you choose to end these policies or stop premium payments, cover ceases and all premiums paid in to date will be lost.
Life’s big events tend to spark the thought of arranging life insurance.
These are all good reasons to get life cover in place should the worst happen to you.
Even if you’ve not yet experienced a major financial change in your life, it could still be sensible to secure cover now.
This is because life insurance premiums are typically cheaper the younger you are.
Simply contact our award-winning team today and start your journey to secure your loved ones' future.
Life insurance is vital for anyone with dependants but who don’t have enough savings in place to cover their loss.
This could be children, a partner or other family member who either rely on your income directly or who would rely on the value of your estate to cover the mortgage or outstanding debts in your name.
For anyone in this position, it is essential to have life insurance protection in place.
Life insurance may also be beneficial for anyone with significant savings as a means of covering inheritance tax.
The policy could be written in trust which can avoid/minimise inheritance tax.
The pay out could then be used to help cover the shortfall of inheritance tax your loved ones will have to pay on your estate.
Occasionally, applicants will be denied life insurance due to poor health or a pre-existing medical condition.
At Reassured, we have a dedicated team of impaired risk life insurance specialists to help with such applications.
So, do not be disheartened if your health is less than perfect and you’re unsure of your life insurance options.
Simply get in touch and our impaired team can help you find the cover you need.
As long as all the information you provided during the application was accurate, a valid claim can be made at any point while the policy is live.
If you pass away within the first two years of the policy the insurer is more likely to investigate, however they have a right to investigate a claim regardless of when you pass away.
This allows them to determine whether all the information was true at the point of application.
This process can be carried out by obtaining your medical records, autopsy notes and other forms of investigation.
Most policies also include a suicide clause of 12 - 24 months.
This means that the life insurance policy is invalid if death occurs as a result of suicide within this time frame.
However, for standard life insurance, regardless of whether death occurs as a result of an accident or natural causes, a valid claim can be made.
A final caveat to this is over 50s plans.
These tend to have a waiting period of 2 years whereby if death occurs due to natural causes within this period, a claim can not be made, (but all premiums paid in will be refunded).
Death as a result of an accident within this timeframe will result in a pay out.
When applying for life insurance, it’s important to be truthful and forthcoming when providing details about yourself.
This will ensure that you’ll receive the most accurate quotes and that the policy you take out is valid.
Providing false information or withholding information on your application form is called ‘non-disclosure’.
Any form of non-disclosure would invalidate your policy and your loved ones could be denied a pay out when you pass away.
Therefore, it’s essential to be completely open and honest when applying for life insurance.
Our staff are not here to judge and will be completely impartial with all information they receive.
All term life insurance policies arranged through Reassured come with terminal illness cover as standard.
This means if you are diagnosed with a terminal illness and predicted to pass away within 12 months, you can make an early claim.
This pay out can then be used to help fund things like private medical treatment, enable you to put your finances in order or to simply enjoy your final days with those you love.
All life insurance policies arranged through Reassured provide guaranteed premiums throughout your cover.
This means you never have to worry about the cost of your monthly premiums increasing during the term.
The type and cost of life insurance can vary significantly between different insurers.
Therefore, to ensure you receive a great deal, it is essential to compare quotes from multiple insurers.
At Reassured, we can compare quotes, saving you valuable time and money.
We can complete the application on your behalf, explain any jargon and provide you with all the information you need to make an informed decision.
And the best bit? Our award-winning broker service is fee-free to use.
^Please note, this may not be available on all policies/in all circumstances
*This information has been gathered from our internal sales data and is the average price of all term life insurance policies (both level and decreasing term) sold to our customers, of all applicable ages, over a 12-month period. The sum assured will vary. Data is correct as of 22/09/22
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Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good!Mrs M Rushworth
Very professional and reassuring. Life insurance sorted in about 10 minutes.Stephen Davies
very courteous and friendly. Polite professional and empathic.Stedroy Fenton
Another happy customer I am. They are very professional and kind. Fully communicative. I recommend.Piotr Stepien
Really attentive during the call, good clear guidance throughout. Well done.Michael Reynolds
Amazing service quick fast and easy and Joey was a star on the phone really help me thanks.Sera Woolley
I made the right choice and now I feel relieved that I did.glyn
Really genuine kind and compassionate team with great knowledge and friendly approach highly recommend them!Katelia Merritt
I must say Jake took me through every step and was brilliant, recommend them anytime.Allan Green
Very happy and everything explained well, so glad a took the time to take the call, normally I would say I'm busy. But compared to other company's we save so much more money.Jenny Berry