Securing life insurance doesn’t have to be confusing. Read…
Life insurance policy lengths can vary. The type of life insurance, your personal circumstances, the amount of cover you require and the provider’s terms and conditions all play a part in determining your term length.
Many people may wonder, why get life insurance? The answer is most people who have a policy will be preparing their loved ones for a future if they’re not around.
It’s important to pick a life insurance policy that meets your needs to ensure your beneficiaries receive a suitable pay out should the worst happen.
You can use Reassured to compare life insurance quotes from leading providers.
Reassured is a FCA-regulated service which offer fee-free, no-obligation quotes that are personalised. Quotes start from just 20p-a-day † .
Questions you may have about life insurance:
There’s no one size fits all answer when it comes to life insurance. What to consider when buying life insurance is dependent on a person’s unique circumstances.
This means the life insurance you require, and its length, could vary wildly from another applicant’s.
Most people will express their concerns about the future when questioned ‘why buy life insurance?’
Circumstances that your loved ones couldn’t control if you were no longer around to provide financially are usually the primary reason for life insurance. Maybe, you're worried about your children’s future without you. Or maybe you want to make sure your partner can pay the remainder of a shared mortgage.
The reasoning behind life insurance is personal to the policyholder. However, most stem from an anxiety about how those left behind will cope financially when you’re gone.
Therefore, a policy should be long enough to protect what you need it to.
If you’re not sure how long your life insurance should last, here are some common commitments to bear in mind:
Mortgage / Rental payments for family
The average outstanding mortgage debt in the UK is £137,934.
However, you'll want to ensure your chosen life insurance term can fully cover your mortgage amount and length.
Utility bills, council tax and home repairs are all things which need to be taken care of.
It’s worthwhile calculating a realistic yearly amount in household costs and the length of time these will need to be covered for.
The average total debt per adult in the UK is £32,053.
If you've debts which will impact your family, ensure that your term can cover paying these off.
Day-to-day family living costs, including food and transportation
From being able to get to work, to making sure you family can eat 3 meals a day.
You'll need to make sure the term length covers your family until they can support themselves financially
Childcare and education costs
According to the Child Poverty Action Group, in 2021, the total cost of raising a child to the age of 18 stood at £160,692 for a couple and £193,801 for a lone parent.
It's worth considering your term is long enough for your children to reach adulthood or until they’re financially stable.
The average basic funeral cost in the UK is £4,056.
To help a partner financially or to retire in later years
This can supplement the lost income they may have benefitted from before you passed away.
By checking your savings and/or retirement fund, you'll be able to work out how close a partner is to retiring and cover that period accordingly.
To leave an inheritance
To help your loved ones financially in an uncertain future without you.
If your children are under 18, you need to ensure they have enough funds to be supported through childhood into early adulthood
To donate to charity
Charitable donations can be made from a life insurance pay out to causes which have a lot of meaning to you in life.
How much in savings / financial cover you have
The average savings in the UK is £76,301 per household.
If you’re family can't survive off your savings, ensure your chosen term mitigates the financial period if you pass away.
However, there are other reasons life insurance could be a benefit to you.
Once you have an idea of what future events need to be covered, you can pick the type of life insurance and term length best suited to what you want to protect and then begin comparing quotes.
The minimum age for life insurance is 18, while the maximum age for life insurance will vary between policies.
At Reassured we'll only provide you with quotes for policies where you meet the eligibility criteria.
Many people will ask themselves: what type of life insurance do I need?
There are multiple types of life insurance which all vary in length. Each policy is tailored to meet different needs and what you’d like to protect.
It is important to note that all premium payments must be maintained for all policy types in order to keep your life insurance policy valid.
The table below shows the differences between the policies at a glance:
|Level term||Decreasing term||Whole of life insurance||Over 50’s life cover||Family income benefit|
|Maximum term length||40 years||40 years||Until policy holders’ death||Until policy holders’ death||40 years|
|Exempt from inheritance tax?||No, (but can be written in trust to avoid / minimise 40% inheritance tax)||No, (but can be written in trust to avoid / minimise 40% inheritance tax)||No, (but can be written in trust to avoid / minimise 40% inheritance tax)||No, (but can be written in trust to avoid / minimise 40% inheritance tax)||Yes|
|Fixed premiums (providing no change to coverage)||Yes||Yes||Yes||Yes||Yes|
|Critical illness cover||Can be added for an additional cost||Can be added for an additional cost||Can’t be added||Can’t be added||Can be added for an additional cost|
|Terminal illness cover||Yes||Yes||Available with certain companies (check terms and conditions)||Available with certain companies (check terms and conditions)||Yes|
|Max sum assured||£1,000,000||£1,000,000||£1,000,000||£20,000||Varies depending on provider|
|Premium price||Affordable cover from 20p-a-day †||Affordable cover from 20p-a-day ¥||Affordable cover from 27p-a-day ±||Affordable cover from 20p-a-day +||Only available through Reassured Advice, contact us for further information|
Term life insurance through Reassured can last for up to 40 years. This allows you to choose a term length that meets your specific needs.
Many things can influence how long your term should be, such as:
Compare term life insurance through Reassured to find the right cover to meet your needs at the best available price.
We can help you to conduct a full level term vs decreasing term quote comparison.
Whole of life insurance is a form of life assurance, meaning cover lasts for life.
This guarantees a pay out to your loved ones no matter when you pass away.
Why not compare whole of life insurance using our award-winning broker service?
In general, there’s no correct age to secure cover and everyone who’s eligible can benefit from having life insurance.
However, taking out life insurance while you’re young and in good health allows you to benefit from the most favourable premiums throughout the entire lifetime of your policy.
Many people decide to take out life insurance once they have reached certain milestones in their life. These include getting married, having children, and getting their first mortgage.
However, even if you've surpassed these, it’s not too late to take out life insurance.
Based upon our award-winning broker service, you can see below an example of the difference in cover between level term, decreasing term and whole of life insurance*:
|Age||Level term (30-year term)||Decreasing term (30-year term)||Whole of life insurance|
*Quotes are based on a non-smoker, in good health, for £100,000 of cover
Essentially, life insurance should end when the reasons you took out life insurance are no longer an issue.
For example, if you've a 25-year mortgage, you may consider taking out term-based life insurance until it’s paid off. Therefore, you can ensure your loved ones won’t lose their home after your passing.
Alternatively, you may consider taking out a whole of life insurance policy if you’re worried about young children / dependents managing when you’re gone.
For those asking when do you no longer need life insurance? There’s no universal answer for when life insurance should end.
Each policyholder has their own reasons for taking out life insurance. Therefore, the length and age you are when your policy finishes will vary significantly from person to person.
At Reassured we can talk through all your needs to help you find your ideal policy. Simply get in touch.
While everyone who’s eligible can benefit from having life insurance, below are a few groups who may benefit from life insurance the most:
How much life insurance you should take out will be based on your reasons for taking out cover.
For example, if you are taking out a policy to cover your mortgage, you need to ensure that there’s enough coverage for the remaining payments. If you want to cover your funeral costs, make sure there’s enough to cover these rising expenses.
Essentially, it depends on what and who you’re looking to protect.
It can be trickier to determine if you have dependents, as the amount of money that may be required to support them can fluctuate and can be affected by inflation.
If your circumstances change with your dependents or if you reach a new milestone, including having another child or obtaining a mortgage, it might be possible to invoke a special events clause to change your coverage, if your policy includes this and you meet the eligibility criteria. Your premiums can be increased or decreased depending on a new level of coverage.
Not everyone will be eligible for this option and it is not offered by all providers, so if this is something you would like make sure to read the terms and conditions of the policy before purchasing or ask one of our friendly team about this option.
You can enter your financial commitments below to understand the level of coverage you require:
If you’re still unsure of how much coverage is required, it’s worth talking it through with a with a broker to get a better idea of what you could cover. Why not do this by comparing quotes with Reassured?
If you already have life insurance in place, you may wish to review your current policy to ensure it still meets all your needs and compare new quotes to see whether you’re getting the best possible deal.
There are multiple factors considered by insurers which impact the cost of your life insurance premium. These typically include:
The price you pay per month will reflect your individual circumstances. This may be higher or lower than the average or the examples we've provided.
Reassured could offer you cover from as little as £5 per month, equating to approximately 20p-a-day.
How much should you pay for life insurance?
Ideally you should pay the cheapest monthly sum you can for the level of cover you need. Always make sure that your policy is at a price within your budget, as if the policy is unpaid, you will not be covered.
While the average lift insurance cost per month ranges from £13.24 to £34.10, prices can be lower or higher depending on the applicant’s circumstances.
What reason would life insurance not pay out?
Life insurance won’t pay out if there’s incorrect information on the application. This is called a non-disclosure and can prevent a pay out from being made.
If any exclusions have been added to a policy (for example a pre-existing illness) and you pass away due to this reason, a pay out won’t be made.
If you stop paying your premiums or your policy term comes to an end you won’t be covered and no pay out will be made, any claims made will also be unsuccessful.
Do life insurance policies expire?
All term-based life insurance policy will expire after the term has elapsed or if the payments are not maintained. Any whole of life insurance or life assurance policy won’t expire providing the payments are maintained.
What term life insurance is best?
Both level and decreasing term life insurances are suited to different needs. One isn’t better than the other, but one may fulfil your personal needs more effectively.
For instance, if you have large expenses (such as an interest-only mortgage or family living costs) level term life insurance may be more suitable.
However, if you've a repayment mortgage and this is all you wish to cover a decreasing term life insurance can reduce in line with your remaining mortgage balance - making it an ideal option.
What happens if I outlive my term life insurance?
If you outlive term life insurance, the policy expires, and you’ll no longer be covered. Your beneficiaries won’t be able to claim on the expired policy when you pass away.
What happens to the money at the end of term life insurance?
If you reach the end of your term life insurance policy, the policy will simply expire and no pay out will be made. Loved ones won’t be able to claim on the expired policy when you do pass away.
If term life insurance comes to an end as a result of your passing, loved ones will need to make a claim and a pay out will be issued.
Does life insurance cover funeral costs?
All types of life insurance can be used to cover funeral costs, providing the sum assured has enough money remaining to pay these expenses and the coverage doesn’t expire before the policy holder’s death.
Yes, there’s no specified limit on how many life insurance policies you can hold.
However, you won’t be able to take out more financial cover than an insurer deems necessary.
While it’s possible to take out multiple life insurance policies, you should make sure that all the premiums together are still affordable for you, because if you miss payments your cover will cease and you will be left uncovered.
Only take out the level of cover that you need to avoid paying over the odds.
Reassured offer life insurance products from multiple top UK providers. The following providers products are offered at Reassured:
|Level term life insurance||Decreasing term life insurance||Whole of life insurance||Over 50’s life cover|
At Reassured, we can provide you with our award-winning life insurance broker service.
It’s completely fee-free and can help you secure the policy that is right for you at the best price available.
Our service will provide you with all the information about the policies available and help you compare multiple quotes from some of the UK’s leading insurers.
We can save you time and money by comparing these quotes for free.
Our FCA-regulated service helps you make an informed decision, and we can arrange cover that starts from just 20p-a-day.
Simply get in contact to start comparing life insurance quotes.
Securing life insurance doesn’t have to be confusing. Read…
Ever wondered what the benefits of life insurance actually…
Compare quotes and buy life insurance online through…
It's even more important for those who are self-employed to…
Life insurance is generally more expensive for smokers but…
When you're part of a couple, joint life insurance may seem…
Family life insurance can secure the financial future of…
Did you know that it's still possible to secure affordable…
If you're overweight you may have wondered how this will…
Most dads need life insurance to secure the financial…
Life insurance helps mums secure the financial future of…
Arranging life insurance in your 40s can open you up to…
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