❤ Life insurance
Get up to £100,000 of cover from £4.69 a month*Get a Quote
*Based on £100,000 of level term cover over 20 years for a 30 year old non smoker with no pre-existing medical conditions (Feb '20)
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A selection of the life insurance providers we compare
Put simply, life insurance is a policy that pays out a lump sum to your loved ones if you pass away during the time you’re covered. You can decide the length, type of contract and cover amount. Your monthly payments are then based on these plus your medical history, age and lifestyle choices.
A life insurance pay out could be used to:
- pay off a mortgage
- replace an income
- pay for childcare or education costs
- maintain your family's current standard of living
You can work out the amount of cover you might need by totalling up your financial commitments e.g. a mortgage, loans/finance, future education costs or use our life insurance calculator to do the hard work for you.
Comparing life insurance is particularly important as you can choose different types depending on what you want to cover.
The two most common types of life insurance are level term and decreasing term.
Level term: The amount you're covered for is fixed when you start paying your premiums, and it stays the same throughout the term. A guaranteed lump sum will be paid if you die during the policy term.
Mortgage life insurance: Also known as decreasing term insurance, is commonly used to cover the outstanding balance of a standard repayment mortgage. The amount of cover reduces over the length of the policy.
Other things to consider:
Critical illness cover: This cover provides you with a lump sum if you’re diagnosed with a defined critical illness during the policy term; for example, some types of cancer or a stroke. It’s important to remember that there’s usually only one pay out, which is when you are diagnosed with an illness. The amount and types of illnesses covered also vary by provider, so always check the policy details.
Joint life insurance: This type of policy will cover you and another person, paying out only once following a claim and then ending. A joint policy can be cheaper than taking out two single policies, but there will only be one payout.
Over 50’s life insurance: A whole of life insurance policy is available to UK residents aged 50 to 80. There’s no medical required and acceptance is guaranteed. Pay outs from an over 50s policy could be used to cover funeral costs, household bills or leave a financial gift to loved ones.
Income protection: This type of policy safeguards your income should you become unable to work due to illness, accident or unemployment. Although it's slightly different to life insurance, some insurers may offer both as a combined policy.
If you would like to discuss different policy options or if you need any more information, then our dedicated life insurance team would be happy to help.
Confused.com partner with Direct Life and Pension Services who can call you back at a convenient time to discuss your requirements and provide you with their professional and impartial recommendation.
Whether you get a quote online, or via the phone, you’ll be asked questions on your lifestyle, medical history and whether you take part in any extreme hobbies or work. It usually takes around three minutes to complete this stage. This allows us to give you an idea of how the insurer will treat your application.
You’ll then be shown a list of prices and insurers along with an indication of how likely each insurer is to accept your application and you can find out more about the policy.
Depending on your answers, you may be able to buy cover immediately without completing an application. If you’re not able to buy now, the insurer will need to know more information about you before giving you a quote.
Once completed, your application will be processed by our partner Direct Life & Pension Services Ltd. You'll be assigned a dedicated and trusted representative who'll liaise directly with your chosen insurer and keep you updated on the progress of your application.
If you still feel you need more information, take a look at our guides or call 0800 652 9754 to speak to one of our team. Lines are open: Monday-Thursday: 9:30am - 8pm | Friday: 9:30am - 1pm.
Why do I need life insurance?
Life insurance is for your peace-of-mind, so you know your family will be financially protected in the event that you're no longer around.
How much life insurance do I need?
The amount of cover you need is different for everyone, and you should tailor your policy to suit your circumstances.
How long should I be covered for?For instance, if you’re getting cover to protect your family, you could think about making your policy last until your children become financially independent.
The length of your policy will vary depending on your personal circumstances - but you can use your reason for taking out insurance as a guide.
How much will it cost?
The cost of life insurance can be as little as £5 per month, but your premiums will depend on your individual needs and circumstances.
I have life insurance through my employer – is that enough?
Even if you’re covered through your employer, it’s still worth checking that the pay-out will provide enough financial security for your family if they have to manage without your income.
You should also bear in mind that if your employment ends, your life insurance cover will also stop.
What is the difference between life insurance and life assurance?
Life insurance covers you for a set period of time whereas life assurance, also often known as a whole of life policy, will usually cover you for your whole life.
As life assurance provides cover for a longer period, and the provider expects to have to pay out at some point, policies are usually more expensive.
What age should I get life insurance?
There is no minimum age for being covered by life insurance, though if you are under 18, a parent or legal guardian will need to take out the cover on your behalf.
According to our data, the average age for taking out a policy is 39**. This may be because most people don’t start to think about life insurance until they have assets such as a home, debt they may need to cover or financial dependents to protect.
You should be able to find life insurance to cover you up until your 90s. However, age isn't the only determining factor in a life policy. It’s also about your current health, changing circumstance and financial security.
**(Based on Confused.com data from September 2019, the average age for a person taking out a level term assurance policy is 38.6.)
Can I change my life insurance cover if my circumstances change?
This depends on your provider. Many offer a guaranteed insurability option so you can increase your policy without more medical checks.
This usually tends to cover circumstances like a mortgage increase, salary increase, marriage or civil partnership or becoming a parent.
But remember to check your policy documents to see exactly what you’re covered for.
Is there anything that might stop the policy paying out?
Your policy may come with some exclusions (circumstances in which it won’t pay out) which vary depending on your insurer.
These can include alcohol or drug abuse, suicide, or deliberate exposure to danger.
Do I get any money back if I don't die by the end of the policy term?
No. You don’t receive any money if you outlive the policy term. At the end of your term, you simply stop making payments and your cover ends.
What's the difference between health insurance and life insurance?
Health insurance covers hospital bills and medical expenses up to an agreed amount.
Life insurance ensures financial protection when you die. Both policies protect your finances differently, with health insurance usually being a shorter term policy.
Is life insurance taxable?
Life insurance is usually tax-exempt. But certain life insurance payouts may be taxed due to inheritance tax (IHT) if it's considered a part of your estate.
After you die, your estate – which consists of all known assets – is passed on to those named in your will.
If your estate is worth more than £325,000, you'll be taxed 40% on everything above the £325,000 threshold. Your life insurance payout can also add to the value of your estate. To avoid inheritance tax, it’s possible to have your life insurance policy written in trust, which is separate from your estate. More information can be found on the government's page regarding inheritance tax.
Jargon buster It’s important to understand every feature of your policy to make sure you and your family are properly protected. Below we’ve pulled together a list of common life insurance terms you’ll come across to help you get the best cover.
EstateThis is a collection of all your assets. So your house, car, savings & investments.
TrustA legally-acknowledged arrangement to pass on your assets under stipulated conditions, such as when you die.
TermHow long the policy lasts for, i.e. 5-40 years.
Fixed premiums (also known as guaranteed premiums)These premiums are fixed and guaranteed not to change during the policy term, unless you alter the cover.
Reviewable premiumsReviewable premiums are guaranteed for the first five years of the policy. After this, the insurer has the option to review your premiums on a regular basis to establish if what you're paying is enough to provide the level of cover selected.
Waiver of premiumIn the event that you're unable to work through ill health, payments will be made on your behalf until the end of your policy term, a specified age, or until you're able to return to work. This is often referred to as an additional extra.
IndexationThe indexation option allows your plan to keep pace with inflation by increasing your cover amount.
Policy increase optionUnder certain circumstances this enables you to increase your level of cover.
Terminal illness coverTerm life insurance policies that provide this type of cover may pay out before death if the policyholder becomes terminally ill.