Why do I need life insurance?
Life insurance is for peace-of-mind, so that if the worst should happen you know your family will be financially sound. You can find out more about the different types of life insurance in our guide – Find the life insurance that's right for you.
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What type of life insurance can I get through Confused.com?
There are a few different life insurance options available to you:
• Level term insurance, which gives you a fixed level of cover and pays out a lump sum in the event of your death within the term of the policy.
• Mortgage life insurance (or decreasing term life insurance), where the amount of cover provided decreases over time. This policy is designed to help protect a standard repayment mortgage, so the amount of cover reduces roughly in line with your remaining mortgage debt.
If you are taking out life insurance with your partner you also have the option of taking out a joint life insurance policy instead of two individual policies. For more information about the pros and cons of individual vs. joint read our guide - Individual and joint life insurance policies.
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How much life insurance do I need?
This is different for everyone and should be tailored to fit your individual circumstances. You may just want to cover your mortgage and other debts or you may also want to leave behind extra money to replace your income when you are gone. Our guide How to work out how much life insurance cover you need gives you some help with this question.
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How long should I be covered for?
Again, this varies depending on individual circumstances but your reason for taking out life insurance can act as a guide. For instance, if you are taking out life insurance to cover your mortgage you may want to think about having cover in place until your mortgage is paid off in full. If your life insurance is to protect your family you may want to think about when your children will become financially independent and have cover in place until then.
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How much will it cost?
Life insurance doesn’t have to be expensive with premiums starting from £5 per month. Your premium will depend on your individual needs and circumstances.
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I have life insurance through my employer – is that enough?
If you do have cover through your employer it might still be worth checking whether the payout would be enough to provide your family with the financial security you would want for them if they had to manage without your income. You also need to consider the fact that should your employment cease, the life insurance cover will also stop.
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Can I change my life insurance cover if my circumstances change?
This depends on your provider. Many providers offer a guaranteed insurability option which allows you to increase your policy without undergoing further medical checks. Usually this covers some or all of the following circumstances:
• Mortgage increase
• Salary increase
• Marriage or civil partnership
• Becoming a parent
This option is not available with all providers so check your policy documents to see if you have this kind of cover. If your provider does not allow this option you may have to cancel your policy and take out a new policy with the new level of cover you require.
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Is there anything that might stop the policy paying out?
Depending on which provider you take out life insurance with your policy may come with some exclusions (circumstances in which the policy won’t pay out). These may include alcohol or drug abuse, suicide or deliberate exposure to danger. Exclusions vary depending on provider.
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What is critical illness cover?
Critical illness cover gives you or your family money if you die, become terminally ill or are diagnosed with a specified illness, whichever happens first. For more information on Critical Illness Cover take a look at our guide – Critical illness life insurance.
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Do I get any money back if I don't die by the end of the policy term?
No, you will not receive any money if you survive the policy term. At the end of your plan term, you will stop making payments and your cover will end.
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