Life Insurance Quotes – what to look for
As with any insurance product it pays to shop around and compare life insurance quotes to be certain of choosing the best life cover for you at the right price.
To compare the UKs leading life insurance providers, just click on the ‘get a quote’ button and enter a few details. It takes less that 2 minutes to compare online quotes and if you want more help, the team at Reassured are on hand to help.
What is Life Insurance?
Life insurance or life assurance as it also known pays out a cash sum if you die during the term of the policy. The type of cover you choose will dictate how long the term is, be that a specific number of years or the whole of your life.
Protecting the family against the financial impact of losing a husband, wife, father or mother, people choose life assurance at any age for many different reasons:
- Help cover mortgage repayments
- Replace lost income helping maintain the same standard of living
- Fund children’s education
- Pay childcare fees so the surviving partner can continue to work
- Cover outstanding loans or debts
- Funeral expenses
- Leave as a gift for family or friends
Your reason for choosing life cover will therefore reflect the type of life policy you choose.
Types of life Cover
The main differences between the various types of life insurance available in the UK is how long your life is insured for, the amount of cover it provides and how the plan is underwritten and the application process.
Term life insurance provides a cash sum if you die within a specified number of years; referred to as the term of your policy. This type of life insurance appeals to those who are looking for life cover over a certain number of years, perhaps whilst children are growing up.
The way term insurance works differs depending on whether it is level term or decreasing term insurance.
Level Term insurance
Level term insurance provides the same amount of life cover throughout the insured period. For example if you choose £100,000 of life cover over a 15 year period, the amount the policy would pay out if you were to die during that 15 year period would always be £100,000.
This means that the amount you pay for term insurance will increase annually so do make sure you are happy with the increase before going ahead.
Decreasing term insurance
Decreasing term insurance provides a specified amount of life cover throughout the insured period however the size of the cash sum reduces each year. For example if you choose £100,000 of life cover over a 15 year period, each year the amount of life cover paid out would decrease.
As a result decreasing term insurance tends to be cheaper as the amount of life cover reduces over time.
Mortgage life insurance
Mortgage life insurance is essentially a decreasing insurance plan that is designed to reduce over the term in line with your decreasing mortgage.
Whole of life cover
Whole of life insurance provides cover for the whole of your life, regardless of how many years that is. The difference with this type of policy is that as long as you pay your monthly premiums when due, a cash sum is guaranteed to be paid out when you die.
As a result of this certainty, whole of life policies tend to be more expensive.
This type of life cover appeals to people who want to leave a cash sum for family and friends or as a way of reducing inheritance tax if written into trust.
Over 50s life insurance
Over 50s life cover is a whole of life insurance policy specifically designed for the over 50s, the main difference being the application process. Most life insurance plans are underwritten meaning your application will depend on your health, perhaps your family medical history and your lifestyle.
With an over 50 plan you are guaranteed to be accepted regardless of the state of your health. As a result the amount of life cover this type of plan pays out is lower compared to a regular whole of life plan.
Some life insurance policies will include critical illness cover which pays out a cash sum if you are diagnosed with a serious illness such as:
- Heart attack
- Certain types of cancer
- Multiple sclerosis
The illnesses do vary depending on the provider and you won’t be covered for any pre-existing conditions.
Joint life insurance
Joint life insurance is a life insurance policy that covers two people but only for one life, typically paying out a cash sum when the first person dies. Therefore, if you are looking to insure both of your lives, then two plans maybe more suitable than joint life insurance.
How much does life insurance cost?
The cost of life insurance will depend on the type of cover you choose but also your age and how much life cover you need. If it is an underwritten life insurance policy, it will also depend on the state of your health, family medical history and your lifestyle.
To understand more about the cost of life insurance, take a look at our comparison table above.
What is the best life insurance for me?
The best life insurance depends on why want it, your health and budget. For example, if you’re in good health and want to leave money to family, then a whole of life plan may be suitable. If your health is not great, then an over 50 plan may be better.
The information we provide should help you understand which type of plan could work for you and our comparison table will show you how much life cover you can get based on your requirements and budget.
Which are the best life insurance companies?
When choosing the best life insurance company, comparing quotes is a must however it also makes sense to look at customer reviews and establish whether the insurer has received awards for quality of service or the plans they offer. Our life insurance reviews therefore are a great place to start.
Life insurance reviews
Our life insurance reviews are independent guides on the UK’s leading providers, focusing on their company history, the policies they provide and reasons for choosing them. All of the companies we review are authorised and regulated by the Financial Conduct Authority, so you know you are protected by their safeguards.
Life insurance comparison sites
Life insurance comparison sites like ours help you compare quotes with the UKs insurance companies. Through our partnership with Reassured, a Financial Conduct Authority (FCA) registered insurance specialist, you can compare quotes with UK insurance companies and get advice for a team of experts.
Other life insurance comparison sites include comparethemarket, confused.com, moneysupermarket.com, money.co.uk to name but a few.
Your questions answered