Best life insurance providers review [2020]

Ultimately, the best life insurance provider will depend on your individual requirements, but with such a saturated market we can understand how daunting picking the right insurer can be.

Many companies have attempted to quantify who the best life insurance provider is, so we've amalgamated their findings to deliver an overall rating.

Sources we used in our research were:

  • https://boughtbymany.com/news/article/best-life-insurance/
  • https://moneytothemasses.com/quick-savings/insurance-2/life-insurance/best-cheapest-life-insurance-uk
  • https://www.genesage.com/best-uk-life-insurance-cover-reviews
  • https://www.drewberryinsurance.co.uk/knowledge/life-insurance/what-is-the-best-life-insurance

Read on to see which market leaders are deemed to be the best life insurance providers...

Best term life insurance providers

Research showed the following 9 providers to be the best for term life insurance:

  1. Legal & General
  2. Liverpool Victoria (LV)
  3. Aviva
  4. Scottish Widows
  5. VitalityLife
  6. Royal London
  7. AIG
  8. Aegon
  9. Zurich

How much life insurance do you need?

Enter your financial commitments to understand the level of cover you require.

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£121,687 is the estimated average outstanding mortgage per household in the UK.

Our property is generally the largest financial commitment any of us will make.

Your life insurance should cover this significant debt should you no longer be around.

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According to Money Advice Service, full-time childcare in the UK now costs £242 a week.

The loss of a parent could result in the need for additional childcare whilst the surviving parent increases their hours to account for lost income.

Your life insurance cover should factor in this additional required outgoing.

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The average level of debt (minus a mortgage) in the UK is £15,385.

Factoring in any outstanding debts in your name when arranging life insurance ensures this burden is not passed to loved ones.

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You may wish to leave your loved ones an inheritance or lump sum gift upon your passing.

Factoring in the gift amount when arranging your cover will ensure the pay out amount will be sufficient to provide your loved ones with this selfless gesture.

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According to SunLife, the average cost of a UK funeral is now £4,417, whilst the total cost of dying is £9,493.

This is a 130% increase over the past 16 years and shows no signs of slowing down.

A significant cost which should be factored into the amount of life insurance you secure.

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If you are one of the 65% of the UK who are lucky enough to have savings, this could be used as protection if you were to pass away.

Any pay outs from existing life insurance policies and investments can also be used as financial protection for your loved ones if you were no longer around.

Factor this into your required cover amount.

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Your total cover estimate

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Let us find your best quote.

Best over 50s life insurance providers

Our research suggests the following 9 providers are best for over 50s plans:

  1. Legal & General
  2. Liverpool Victoria (=LV)
  3. Aviva
  4. Royal London
  5. Post Office
  6. AA
  7. SunLife
  8. Churchill
  9. Asda

Strangely, our research showed Asda and AA to be two of the top 10 over 50s life insurance providers, however, we recently discovered they no longer provide life insurance.

In fact, AA and Asda are not actually insurance companies, but white label products selling Legal & General or LV policies respectively.

Best whole of life insurance providers

The best whole of life insurance providers were suggested to be:

  1. AIG
  2. Royal London
  3. Legal & General
  4. VitalityLife
  5. Scottish Widows
  6. Aegon
  7. Zurich
  8. Liverpool Victoria (=LV)
  9. Old Mutual
  10. Aviva

However, as mentioned, it's difficult to quantitatively define the best providers so let’s take a look at how you can determine the best life insurance provider for YOU.

Best type of life insurance

The best type of life insurance will depend on your individual requirements.

For example, do you have a mortgage, do you have children, how old are your children etc.

There are a variety of different policy types available, each suited to covering different aspects within your life.

Therefore, the best type will be the one which provides the most suitable cover for what it is you're wanting to protect.

Term-based life insurance

Term-based life insurance provides cover for a specified period of time.

If you pass away within this predetermined time frame a lump sum pay out will be made to your loved ones.

Level term life insurance provides a fixed lump sum which holds its value throughout the life of the policy.

This makes it ideal for protecting fixed costs, such as an interest-only mortgage or an inheritance.

Decreasing term life insurance, on the other hand, provides a lump sum pay out which reduces throughout the life of the policy.

This makes it more suitable for covering such aspects as a repayment mortgage, which reduces over time.

Finally, family income benefit provides ongoing, tax-free, monthly payments for the remainder of your policy if you pass away.

This makes it well suited for replacing a lost income or covering day-to-day family living costs.

As a result, to determine the best type of life insurance to suit you will depend on what aspects of your life you're looking to protect.

Life assurance

You may have wondered what the difference between life insurance and life assurance is?

Life insurance pays out if you pass away during a term, whereas life assurance pays out when you pass away. (Hence, the assured).

An example of life insurance would be level or decreasing term cover, which only pays out if you pass away during the policy.

An example of life assurance would be an over 50s plan or whole of life cover, where a pay out is guaranteed

Whole of life insurance is similar to level term life insurance, however, there's no set term, so the policy remains in place for life.

It's good for covering similar aspects within your life but is best suited to those in later life who are in good health.

This is because it's possible to pay more into the policy than the overall sum assured.

An over 50s plan offers guaranteed acceptance for all UK residents aged 50-85 years.

The sum assured remains fixed but is significantly lower than other policy types, making it more suited to covering funeral costs or an inheritance.

Which is the best life insurance?

Additional to considering what type of life insurance is best for you, there are a number of other aspects to deliberate.

The industry average for claims paid is 98% but this will still vary between insurers.

Therefore, it may be beneficial to take the claims pay out rate of providers into account when selecting your policy. (Although, most major insurers had pay out rates of over 95% in 2018).

Providers also vary in the length of term cover they provide and the amount of cover they'll offer you.

Therefore, it's important to consider what it is you're looking to cover and for how long to determine which providers best meet your requirements.

Life insurance premiums

Each life insurance provider will calculate the cost of your monthly premiums differently.

Typically, they take into account your age, smoking status, medical history and lifestyle to determine the likelihood of a claim.

Not only can this influence the cost of your cover but also your likelihood of being accepted.

At Reassured we compare quotes from a wide range of providers, ensuring you receive the best possible deal.

We also house a specialist impaired team who have helped secure cover for 45% of people who have been declined elsewhere.

Simply get in touch with our award-winning team to find the best life insurance cover for you.

Which is the best over 50 life insurance?

Over 50s life insurance policies offer guaranteed acceptance for UK residents within a specific age bracket, however, they're not all equal.

If you've decided this product is the best suited to meet your needs, there are a number of elements to consider.

Some providers only offer guaranteed acceptance between 50-80, but at Reassured, we offer guaranteed acceptance for all UK residents up to the age of 85.

Therefore, your age alone may factor into your decision on the best over 50s plan for you.

The purpose of your cover may also determine with whom you arrange your cover.

Over 50s life insurance is often used to cover the rising cost of a funeral.

Some over 50s providers offer a funeral benefit, meaning that upon your death, the proceeds of your policy are paid directly to a funeral director and an additional monetary benefit is added to the pay out amount.

The benefit amount will vary between policy providers and can be anywhere between £250 to 10% of the policy cover amount.

Therefore, if this is the purpose of your cover, it may be in your best interests to seek out a provider offering this benefit.

Why Reassured?

Arranging your cover through Reassured will provide an opportunity to harness the funeral benefit.

Typically, the sum assured associated with over 50s life insurance is significantly lower than that of term or whole of life cover.

However, the sum assured can also differ significantly between providers with some offering as low as £10,000 and others offering up to £25,000.

Meaning you should consider the amount of cover you require when determining the best over 50s provider.

Finally, you should consider the likelihood of paying more into the policy than your loved ones will receive.

Many insurers will cap your premiums, meaning that when the policy has been in place a certain length of time (usually 30 years) or you reach a certain age (usually 90), you're no longer required to make payments, but your cover will remain in place.

However, some over 50s policies require you to continue making payments for the rest of your life, leaving you at higher risk of paying more into the policy than the overall sum assured.

At Reassured, we compare over 50s life insurance policies from a number of providers

How do I choose the best life insurance plan?

To determine the best life insurance plan, you should first consider what it is you're looking to protect.

This won't only allow you to determine the type of policy best suited to meet your needs but also the amount of cover required.

Your health and lifestyle should also be taken into account as some providers will cater for impaired clients, whilst others will heavily load premiums or decline cover.

Ultimately, the most effective way to determine the best life insurance plan for you will be uncovered by comparing multiple insurers.

This can be done in one of three ways:

  1. Research different providers yourself online, cross-referencing their offerings, although this can be very time-consuming
  2. Use a comparison website, although this would require having a reasonable amount of knowledge; understanding the cover you want and deciphering any jargon
  3. Use a life insurance broker who'll obtain all of the details of the cover you require and present all of the information you need, in a clear, concise format, allowing you to make an informed decision

At Reassured, we do exactly that. Simply get in touch today to make use of our fee-free, award-winning service.

Compare the best life insurance quotes

At Reassured, our primary objective is to help you arrange the best life insurance cover for you.

Our award-winning team can discuss your specific needs and compare quotes on your behalf, ensuring you secure the right cover.

We can also help you unpick the jargon as well as compare different policy types.

And our FCA registered broker service is completely fee-free to use, (so, you have nothing to lose)!

Simply get in touch today to secure the financial future of your loved ones.

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