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LIFE COVER Quotes FROM £4.261
We’re dedicated to helping you get the right policy, to give you and your family the peace of mind you deserve. That’s why we work with 13 leading life insurance providers, including:
1Monthly premium, based on £100,000 worth of level term cover for a 30 year-old non-smoker with no pre-existing medical conditions over a 20 year period (May 2022). UK only.
2Gift card value will vary based on the monthly premium of your policy. See below for details.
Take out life insurance online through MoneySuperMarket and receive an Amazon.co.uk Gift Card** worth up to £200.
Gift card is redeemable within 40 days of 6th life insurance payment. Gift Card value varies based on the first monthly premium of policy and will be confirmed on the results page. Terms and conditions apply. Not available to those who’ve received a voucher with a life insurance purchased after 28th of February 2021. One voucher per person, offer ends 13th October 2022.
**Restrictions apply, see www.amazon.co.uk/gc-legal
As well as peace of mind and financial security for your loved ones, many life insurance companies provide added benefits you can enjoy while your policy is in place. Some of these might include:
Access to counselling, and confidential wellbeing support
Speak to a GP and get a prescription online or over the phone
Money off at retailers, gyms and cinema tickets
Life insurance lets you leave some financial security for your loved ones if you pass away. Your family would usually get a lump sum that can help to pay off any debts, like a mortgage, as well as giving them money to live off. If you prefer, you can arrange to provide a regular income for them instead.
According to the association of British insurers, 98% of life insurance claims were paid out in 2021, which equated to £18 .6 million paid every single day.2
Find out more, read our guide on What is Life Insurance?
Life insurance isn’t a legal requirement, but it can be a good idea if you have anyone that depends on you financially, like a partner or children. Life insurance can provide a financial safety net if you’re no longer around to provide for them anymore, as well as peace of mind.
If you’re looking to take out a mortgage, be aware that some mortgage providers might want you to have life insurance so they know the mortgage can be repaid if you do pass away.
2According to data provided in an ABI news release in May 2021, accurate as of May 2021
Life insurance policies usually pay out a lump sum if you pass away, or are diagnosed with a terminal illness and are not expected to live longer than 12 months. When taking out life insurance, you’ll agree on the amount of cover you’d like to receive – along with the people you’d like to list as the beneficiaries. Every family is unique, but some things to think about include:
Take time to think about how much your partner and children might need, based on their living expenses as well as any outstanding debts
When thinking about how long you need cover for, consider how long your children might need financial support, or when your partner might retire
A joint policy with a partner can cover you both and be cheaper than two single policies but only pays out when the first person passes away
Cover can start from just £4.261 a month. Be mindful that there are many things that can affect how much your life insurance costs though, and this is the minimum you can expect to pay.
Our table below shows the average costs of life insurance by age bracket, and you will see that the average cost of a policy is often a little higher. Some of the main things to consider are:
If you take out a higher amount of cover, your monthly payments are likely to be higher. Plus, the longer your cover lasts, the more you’ll pay overall
You could cut the cost of life insurance by making healthy lifestyle choices such as giving up smoking, drinking less or losing weight
Generally speaking, the older you are, the more expensive life insurance tends to be. This is because as you get older you have a greater chance of developing health issues
Level term policies are usually more expensive than decreasing term, for example, because the pay-out stays the same for the whole lifetime of your policy, as opposed to going down over time
Age | Average monthly cost 4 |
|---|---|
18-29 | £13.24 |
30-39 | £21.03 |
40-49 | £29.79 |
50-59 | £34.10 |
The average cost above is based on a level term, life-only (without critical illness cover) single person policy. MoneySuperMarket data June to August 2021, accurate as of September 2021
It’s not always easy to decide how much life insurance cover you need, and it will always depend on personal circumstances. But, that’s where our handy life insurance calculator comes in.
Our calculator will help you take into account how much you would need to cover what your family would need if you were no longer around, including mortgage or rent payments, living and household expenses, outstanding debts, childcare costs, and funeral costs.
When buying individual policies, people take out an average of £150,000 of cover, according to MoneySuperMarket data collected between January 2021 and March 2021. The average for joint life insurance was £200,000 during the same period.
In general, the length of your life insurance policy depends on what you want it to cover.
If you want your policy to provide financial protection for your loved ones, consider when you think your family will be able to manage the household finances without you. For instance, this could be after your children have completed full time education.
If you want your policy to provide financial protection for your loved ones, consider when you think your family will be able to manage the household finances without you. For instance, this could be after your children have completed full time education.
There are two main types of life insurance and you should choose the one that suits you and your loved ones best.
Level term insurance is the simplest level of life insurance. You decide the pay-out value and duration of the policy.
If you die within the terms of the policy, your dependants will receive the pay out as a fixed sum. The amount paid out stays the same regardless of when a claim is made.
Advantages
Fixed premiums mean you can find good deals
You know exactly how much your loved ones will get
Financial support and peace of mind
Disadvantages
Fixed premiums can be more expensive
Fixed pay-out takes no account of inflation
No pay-out if you die after the policy term
Decreasing term insurance is usually used to cover debts that decrease over time, like a mortgage as the amount paid out by the policy reduces with time.
If you were to die near the start of the policy term, your dependents would receive more than near the end.
Advantages
Often cheaper than level-term
Can protect your mortgage
Disadvantages
Decreasing value of pay-out
Often only covers mortgage, nothing else
We work with 13 of the biggest life insurance providers in the UK to bring you some of the best deals on the market
80% of our customers have the option to ‘buy now’, without medical exams or additional documentation, for the price quoted
MoneySuperMarket has helped over 200,000 families feel financially protected with life insurance over the past four years
It’s important to understand what your life insurance covers to give you the peace of mind that your family will have the financial support they need.
Cover varies between providers, but you can find some common inclusions and exclusions in our table below. It’s a good idea to compare policies according to the protection they offer, as well as the price – this will ensure you’re getting the policy you need.
Covered | Not covered | Sometimes covered |
|---|---|---|
Death during your policy | Pre-agreed conditions | Terminal illness diagnosis where life expectancy is less than 12 months |
Cancer | Drug and alcohol abuse | |
Cardiovascular disease | High-risk activities | |
Stroke | An assault or criminal offence | Suicide or death as a result of an injury if you’ve had the policy for at least 12 months from the start date |
Respiratory conditions | Total disability during your lifetime | |
Natural causes | Critical illness during your lifetime |
Life insurance is there to provide financial security for anyone who depends on you, if the worst happens and you pass away. There might be some big moments in your life when your circumstances change – these are good times to think about cover.
Getting married: You might have bigger joint financial commitments as a married couple.
Starting a family: You’ll have someone who depends on you, and relies on your income.
Taking out a mortgage: You’ll have a debt that will need to be cleared so you or your family can keep your home.
Starting or ending employment: Your income could change significantly, so you may want to think about putting some aside for your family.
Planning your funeral: Funerals can be expensive, so you might want to help your family with the cost by leaving them money to put towards a celebration of your life.
Covering inheritance tax for your dependants: Writing your life insurance policy in trust means your loved ones won’t have to pay any tax on inheritance you leave them.
"Life insurance will give you and your loved ones peace of mind and financial protection. Everyone’s situations are different and the policy you go for, and level of cover you choose, will be unique to you. It’s important to get the right amount of cover - too little and your family won’t be looked after but too much means you’re paying more money than you need to be. Our free cover calculator is a great tool to help you work out just how much life insurance you need.
"
- Neal Cross, Senior commercial manager for life insurance
We make it as simple as possible for you to find the right life insurance policy You’ll need to give us some information, so it’s worth making sure you have these details to hand before you get started:
We’ll need some details about you and your family’s health and medical history, including any pre-existing medical conditions.
You’ll also need to tell us about your lifestyle, such as your drinking habits, and whether you smoke.
The younger you are when you take out life insurance, the cheaper it tends to be. The type of work you do can also affect the price.
If you’d like joint cover, you’ll need to have information to hand about your partner’s health, lifestyle and work.
The chances are you’ll be eligible in most cases, even if you have a medical condition, as long as you live in the UK and you’re at least 18 years old.
The most important thing is to make sure you answer the questions honestly when you’re getting a quote, so your insurer has the full picture. This way, you know your cover will be valid.
Need advice on life insurance?
We run our life insurance service with our partner, LifeSearch. If you’d like some guidance about what kind of cover you need, you can talk to them free of charge. Give them a call on 0800 197 3178.
Their opening hours are:
Monday to Friday 8am to 8pm
Saturday 9am to 2pm
Sunday 10am to 3:30pm
We make it as simple as possible for you to find the right life insurance policy. You’ll need to give us some information, so it’s worth making sure you have these details to hand before you get started:
The younger and healthier you are, the cheaper your life insurance will be, so apply earlier in life for a lower premium price
Provides cheap life insurance for a period when you need it most, like the term of your mortgage or until your children move out
This will ensure your beneficiaries won’t have to pay any inheritance tax and will make the payment process quicker
Combining policies with life insurance, like critical illness cover, can be cheaper than buying them separately
Changes to health or lifestyle, divorce, new job or redundancy, or mortgage changes could all affect your terms and prices
Don’t hide vital health information from your insurer, you might get cheaper premiums but risk losing the pay-out
Healthier habits can make you lower risk for insurers meaning lower premiums (e.g. non-smokers pay less for life insurance)
Compare a range of deals but don’t simply pick the cheapest cover you can find, make sure you get the right cover for your needs
This policy type will pay out a tax-free lump sum if you’re diagnosed with a serious illness. It can give you and your family financial support if, for instance, you have to stop working.
This is specifically designed for anyone over the age of 50. You’re guaranteed to be accepted, and you don’t have to answer any health questions or pass a medical test.
This type of life insurance covers you for your entire life, rather than for a fixed term, as long as you keep up your monthly payments. This means your family will get a pay-out when you pass away, whenever that may be.
Some employers offer death in service cover as a benefit. If you pass away while you’re employed, a person you’ve chosen will get a tax-free lump sum, which is usually a multiple of your salary.
Losing someone important to you is never easy, and if you’re a business owner you will also have to consider the impact losing a key person can have on your operations.
Taking out a key person insurance policy can protect your business in the short term by providing a cash boost. So if someone key to the operation of your company passes away or becomes unable to work as a result of their health, it can help you survive in the short term and give you more time to make long-term plans.
There are some eligibility criteria that need to be met if you want to take out life insurance. You will need to be:
a UK resident
Over 18 years of age
You’ll need to provide some information about yourself and your circumstances including:
Information about your health: details about you and your family’s health and medical history, including any pre-existing medical conditions.
Information about your lifestyle: You will also need to detail your lifestyle, such as your drinking habits, and whether you smoke.
Your age and your job: The younger you are when you take out life insurance, the cheaper it tends to be. The type of work you do can also affect the price depending on how dangerous your job might be.
Your partner’s details: If you’d like joint cover, you will need to have information at hand about your partner’s health, lifestyle, and work.
Your provider may ask for supporting documents to prove the accuracy of the information you’ve given so it’s worth it to make sure you have these details at hand when you start an application.
Life insurance typically has a limited term in which your beneficiaries can make a claim. Life assurance, on the other hand, has no end. It comes with a guaranteed pay out, no matter what age you are when you pass away.
For more information about the differences between the two insurance types, you can read our life assurance guide.
It isn’t a legal requirement to get life insurance for a mortgage, 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.
For more information read our do I need life insurance for a mortgage guide
You can take out critical illness cover as well as life insurance, and this will pay out if you’re diagnosed with a named medical condition during the term of your policy. It generally comes as either:
Additional cover: If you take out life insurance with separate critical illness cover, you’ll receive a pay out a) if you get a critical illness b) if you pass away (both during the term of your policy)
Combined cover: If you take out a combined policy, you’ll only receive one pay out, either if you become critically ill or if you pass away (during the term of your policy)
MoneySuperMarket offers the option to take out additional cover once you have completed a life insurance quote, with the premium calculated using the information you gave when applying for life cover. We believe this provides a more flexible and comprehensive solution than a combined policy.
Term life insurance is a policy that offers cover for a set period of time – when the term ends the policy lapses, and if you survive the term then it won’t offer a pay out.
Whole-of-life insurance offers a pay out no matter when you pass away – it will cover you for the rest of your life.
Putting your life insurance in trust lets you name the people you want to receive your pay-out (your trustees).
There are different types of trusts available depending on your individual or family circumstances. Putting your life insurance policy into trust also protects the pay-out from inheritance tax.
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.
Depending on who you are and your medical history, coronavirus does have an effect on the price and availability of life insurance. Life cover is very much still available, however you can find out more about how coronavirus affects life insurance at our FAQ Answer copy.
If you have a pre-existing medical condition, you may still be able to get life insurance. However, some options may not be available to you, or may be more expensive.
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 level of risk associated with your condition. You’ll be asked to sign a medical release form which will allow the insurer to request this information from your doctor.
Life insurance is more expensive when you have a pre-existing condition because of the level of risk to the provider. However, it’s important that you declare any pre-existing medical conditions when taking out life insurance. If you don’t, your insurer can refuse to pay out for any claims.
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.
If you’ve been diagnosed with a terminal illness and a doctor has given you a prognosis of less that 12 months to live, you may be able to make a terminal illness claim on your life insurance policy.
This means you would receive the pay-out now instead of your dependent receiving it once you’ve passed away. The lump sum from a life insurance policy can then be used to help 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 policies. Other insurers may, instead, offer terminal illness cover as an optional extra cover. There will be terms and conditions with both options, so you will need to read the policy documents to make sure you’re covered.
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.
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.
You are legally allowed to take out more than one life insurance policy at a time. For instance, if you have a repayment mortgage you may have to take out a separate life insurance for your mortgage to make sure your dependents can continue to afford payments.
Life insurance pay-outs are subject to inheritance tax, just like the rest of your estate. If yor 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 tat if you leave a total of £400,000, the first £325,000 is tax free. The rest - £75,00 – will be taxed at 40%, leaving £45,000.
Your family can avoid paying inheritance tax on your life insure by writing your policy in trust.
In short – it depends. Everyone’s individual needs are different and depend on factors like your health and lifestyle. So, the ‘best’ life insurance provider is the one that has the policy that suits you, which won’t be the same for everyone.
When choosing which provider to go with, it comes down to more than just price. As well as comparing cost, it’s important to consider the number of exclusions, benefits, and how much flexibility a policy has, as well as what percentage of claims the insurer pays out.
You work hard to earn your money, and we don’t think you should waste a penny of it paying over the odds on your household bills. That’s why at MoneySuperMarket, we’re on a mission to save Britain money.
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So how do we make our money? In a nutshell, when you use us to buy something, we get a reward from the company you’re buying from.
You might be wondering if we work with all the companies in the market, or if our commercial relationships with our partners might make us feature one company above another. We’ve got nothing to hide, and we want to give you clear answers when it comes to questions like these, so we’ve pulled together everything you need to know on this page.
