*Customers who have received a voucher/gift card before aren't eligible. Eligible customers and online purchases only. Minimum 6 payments required see full T&Cs. Restrictions apply, see www.amazon.co.uk/gc-legal
We're 100% independent, working only for our customers
Unlike some of our competitors, MoneySuperMarket is not owned by an insurance company. So we can offer the best value, with savings delivered straight to you.
We combine independence, so we can negotiate the best prices, with excellent technology, to find the best value products and services.
How does coronavirus affect my life insurance policy?
Depending on who you are and your medical history, coronavirus does have an effect on the price and availability of life insurance. Life insurance is very much still available, however, and you can find out more about how coronavirus affects life insurance at our FAQ.
How much does life insurance cost?
The average monthly cost of life insurance is £15.85*, according to MoneySuperMarket data.
Your monthly payments will also depend on the amount of cover you take out and your health and lifestyle.
*51% of customers who went on to purchase achieved a quote based on the figures above for level term, life-only (without critical illness cover) single person policies. MoneySuperMarket data July 2019 to June 2020.
How much life insurance do you need?
The amount of life insurance you take out should ideally be enough to cover your mortgage repayments and the needs of your family if you were no longer around.
The average cover amount that consumers purchasing individual life insurance policies take out is £150,000, according to MoneySuperMarket data collected between July 2019 and June 2020. The average cover amount for joint life insurance was £200,000 during the same period.
When should you get life insurance?
It’s worth thinking about life insurance if you have a partner or child who relies on you financially, and they would struggle to pay the mortgage, rent or other bills if you were no longer around.
Do you need life insurance to take out a mortgage?
Life insurance isn’t a legal requirement, but most mortgage lenders will ask you to take out appropriate cover. You don’t need to take out life cover from your lender – you can buy it elsewhere.
What does it mean to put a life insurance policy in trust?
There are different types of trusts available depending on your individual or family circumstances.
Putting your life insurance policy in trust also protects the payout from inheritance tax.
When should you update your life insurance policy?
It can be a good idea to think about updating your life insurance policy if:
Your health or lifestyle has changed
Your financial situation has changed (your salary or mortgage might have increased)
Your family has grown
Your relationship with your dependant has changed – although you will need to check your insurer can do this for you
If you are not able to update your existing policy, you may be able to find a policy with a different provider that better suits your new situation. It’s always a good idea to get a personalised quote to see if your current insurance is the best option that’s available to you.
Can you get life insurance if you have a pre-existing medical condition?
If you have a pre-existing medical condition you should still be able to get life insurance, but you may need to compare your options online.
If you have a more complex condition and you’re finding it difficult to get a price online, a broker or adviser – such as our partner LifeSearch - can help you find a provider that will cover you.
You’ll most likely need to share additional medical information and copies of any tests with the provider to help them understand the risk level of your condition. You’ll be asked to sign a medical release form and the insurer will then request this information from your doctor.
You can end up paying more because of this risk. But it’s important to declare any pre-existing medical conditions when taking out life insurance because if you don’t, your insurer can refuse to pay out for any claims.
What happens to your life insurance policy if you can’t meet your payments?
If you are not able to work because of an illness or injury – which then means you’re unable to afford your monthly life insurance payments – a waiver of premium could mean you’ll be covered during this time.
This will need to be added to your policy as an additional level of cover and it will need to be taken out from the start of your life insurance policy.
Can you claim on your own life insurance policy for a terminal illness?
If you’ve been diagnosed with a terminal illness and a doctor has given a prognosis of less than 12 months to live, you may be able to make a terminal illness claim on your own life insurance policy.
This means you would receive the payout now – instead of your dependant receiving the payout once you’ve passed away – and this can help to cover the cost of not being able to work during your final months and getting your affairs in order.
Some insurers offer terminal illness cover as part of their standard life insurance policy. Other insurers require you to add terminal illness cover as an extra level of cover. There will be terms and conditions with both options so you’ll need to read the policy documents to make sure you would be covered.
How are policy premiums calculated?
Insurers use a complex analysis of your age, lifestyle, medical history and living situation to calculate your premiums. You can find out more with our life insurance calculator.
How long should I get life insurance for?
Most life insurance policies run for a set period of time, for a period of at least five or ten years to – usually – 25 years. If you have special requirements, you can discuss them with your chosen insurer, but it’s worth bearing in mind that the younger you start your policy, the less you’ll have to pay.
Am I already covered by my employer’s life insurance?
Some employers offer what’s known as a death-in-service benefit to their employees, which will typically pay a lump sum of four times your salary to a named dependent. This type of policy is not a legal requirement, however, and it’s best seen as a complement to a life insurance policy, rather than a substitute.
Can I cancel my policy if I no longer need it?
You can always cancel your life insurance policy at any time you wish, but the vast majority of policies do not give you money back if you cancel before the end of the term.
You might want to cancel a policy because you’ve found cheaper cover elsewhere, or you might simply not want to keep paying your premiums.
Can I have multiple life insurance policies at the same time?
You are legally allowed to take out more than one life insurance policy at a time. For instance, if you have a mortgage you may have to take out a separate policy to make sure your dependents can keep making payments.
Insurers probably won’t let you take out an infinite amount of cover, however.
Is life insurance taxable?
Life insurance payouts are subject to inheritance tax just like the rest of your estate. If your total estate is worth less than £325,000 (or £650,000 if you are married and leaving it all to your spouse), then your dependents won’t have to pay a penny in tax.
However, if your estate plus your life insurance policy are worth more than that in total, inheritance tax will be due on anything above that threshold at 40%. This means that if you leave a total of £400,000, the first £325,000 is tax free. The rest – £75,000 – will be taxed at 40%, leaving £45,000.
Your family can avoid paying inheritance tax on your life insurance if you write your policy in trust.
Do I get my money back if I don’t die by the end of the policy term?
No. If you are still alive at the end of your life insurance policy term, the money is gone.
How to claim your £100 Amazon.co.uk gift card
To claim your Amazon gift card, click here.
Explore more life insurance
Get Money Calm
MoneySuperMarket gives you lots of clever ways to save a lot, by doing very little.
- Take control of your credit score by checking and improving it for free with Credit Monitor
- Never overpay again with Energy Monitor, our energy monitoring service
- Over 50 ways to Get Money Calm
So how do we make our money? In a nutshell, when you use us to buy a product, we get a reward from the company you’re buying from.
But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?
We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.