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Get expert guidance to find the right life insurance for your family. Compare quotes from leading UK providers.
Life Insurance
What type of cover do I need?
Term life insurance covers you for a set period. Whole of life pays out whenever you die. The right choice depends on whether you need cover for a specific debt or lifelong protection.
How much cover should I get?
A common starting point is 10 times your annual income, plus any outstanding debts like a mortgage. Your actual needs depend on your family's living costs and existing savings.
What affects the cost?
Your age, health, smoking status, and level of cover all affect premiums. A healthy 30-year-old non-smoker can get £250,000 of cover from around £7 per month.
Do I need life insurance?
If anyone depends on your income, including a partner, children, or a business partner, life insurance protects them financially if you die. It is also often needed for a mortgage.
Can I get cover with health conditions?
Yes. Many insurers cover pre-existing conditions, though premiums may be higher. Some policies do not require a medical exam at all, particularly over 50s plans.
Should I write my policy in trust?
Writing your policy in trust means the payout goes directly to your beneficiaries without waiting for probate. It can also reduce inheritance tax on larger estates.
Finding the right life insurance starts with understanding what you need and comparing options from across the market. Here is how it works with Money Saving Advisors.
Comparing directly with a single insurer means you only see their products. Working with a whole-of-market advisor means you see the full picture, including specialist policies you would not find by searching online. There is no cost for the advice, and no obligation to proceed.
The right life insurance depends on what you are trying to protect and who relies on your income. Here are the most common situations and which type of cover tends to work best.
If you have children who depend on your income, term life insurance is usually the best starting point. Choose a term that lasts until your youngest child is financially independent, typically 18 to 25 years. Level term cover pays a fixed lump sum, giving your family enough to cover living costs, childcare, and education.
If your main concern is making sure your mortgage gets paid off, decreasing term life insurance matches a repayment mortgage because the cover reduces as your balance falls. It is cheaper than level term because the potential payout decreases over time. If you have an interest-only mortgage, level term is the better option since your balance stays the same. Read more about life insurance for a mortgage.
Whole of life insurance pays out whenever you die, as long as you keep paying premiums. It is more expensive than term cover but guarantees a payout. It is often used for inheritance tax planning or to leave a specific amount to beneficiaries.
Over 50s life insurance offers guaranteed acceptance with no medical questions. Premiums are fixed and cover is typically between £1,000 and £25,000. It is designed to help cover funeral costs or leave a small inheritance. Be aware that if you live long enough, you could pay more in premiums than the policy pays out.
If you are self-employed, you likely have no employer death-in-service benefit, making personal life insurance more important. Self-employed life insurance works the same way, but you may want to combine it with income protection to cover your income if illness or injury stops you working.
Not sure which type suits you? Our guide on whether you need life insurance walks through the key questions to help you decide.
There are several types of life insurance available in the UK. The right one depends on what you want the payout to cover and how long you need protection. Here is how they compare.
| Type | Best for | How payout works | Typical monthly cost |
|---|---|---|---|
| Term life insurance (level) | Families, income replacement | Fixed lump sum if you die within the term | £7–30 (age 30, £250k cover) |
| Decreasing term | Repayment mortgage protection | Lump sum decreases over time, matching your mortgage balance | £5–20 (age 30, £250k cover) |
| Whole of life | Inheritance tax planning, guaranteed payout | Pays out whenever you die, no fixed term | £30–80+ (age 30, £100k cover) |
| Over 50s | Funeral costs, small legacy | Guaranteed acceptance, fixed payout (£1k–25k) | £10–50 (fixed premium) |
| Joint life insurance | Couples, shared mortgage | Pays out on first death (or both with separate policies) | £10–40 (age 30, £250k cover) |
| Family income benefit | Ongoing income for dependants | Regular tax-free income instead of lump sum | £5–15 (age 30, £30k/year) |
Level term is the most popular choice and suits most families who need a straightforward lump sum to replace lost income. Decreasing term costs less because the cover falls over time, making it a good match for a repayment mortgage where the outstanding balance shrinks each year.
Whole of life guarantees a payout but costs significantly more. It makes most sense for people with a specific inheritance tax liability or who want certainty that their beneficiaries receive something regardless of when they die.
Family income benefit is often overlooked but can be the most practical option for families with young children. Instead of a lump sum that needs investing, it pays a regular monthly income until the end of the term, which is easier to budget with and harder to spend too quickly.
Life insurance premiums depend on your age, health, smoking status, the amount of cover you need, and the length of the policy. Younger, healthier applicants pay significantly less. Here are example monthly premiums for £250,000 of level term life insurance over 25 years.
| Age | Non-smoker | Smoker |
|---|---|---|
| 25 | £5–8 | £8–14 |
| 30 | £7–11 | £12–20 |
| 35 | £9–15 | £16–28 |
| 40 | £14–22 | £25–42 |
| 45 | £22–35 | £42–68 |
| 50 | £38–58 | £72–110 |
Example premiums for a healthy individual, £250,000 level term cover over 25 years. Actual quotes vary by insurer, health history, and occupation. Correct as of July 2026.
Smoking roughly doubles the cost of life insurance. Insurers class you as a smoker if you have used cigarettes, e-cigarettes, nicotine patches, or any nicotine products within the last 12 months. If you quit more than 12 months ago, most insurers will offer non-smoker rates. Read more about life insurance for smokers.
For a detailed breakdown, see our full guide on life insurance costs. The most effective way to reduce costs is to apply while you are young and healthy. Premiums are based on your health at the time of application, and most policies lock in that rate for the full term.
There is no single right answer, but a structured approach helps you avoid under-insuring or paying for cover you do not need. Start with these three calculations.
You may also want to factor in:
A common shortcut is 10 times your annual salary, but this may over or underestimate depending on your mortgage size, number of dependants, and existing savings. Use our life insurance cover calculator for a more precise figure based on your circumstances.
Most people insure their home and their car but not the income that pays for both. If you have a mortgage or anyone who depends on your earnings, life insurance is not optional. The real question is how much cover matches your actual commitments, not just a round number.
Yes. Having a health condition or non-standard situation does not automatically disqualify you from getting life insurance. Most conditions are insurable, though your options and premiums will vary.
Conditions like diabetes, asthma, high blood pressure, depression, and even some cancers are covered by many insurers. You will need to disclose your full medical history during the application. Insurers may charge a higher premium, add specific exclusions, or in some cases decline cover for that particular condition. A broker who works with multiple insurers can find the one most likely to offer competitive terms for your specific condition. See our full guide on life insurance with pre-existing conditions.
The application process is the same, but self-employed people typically have no employer death-in-service benefit, making personal cover more important. Some insurers assess self-employed applicants differently, particularly if your income varies year to year. You may find it helpful to combine life insurance with income protection to cover both death and the risk of illness or injury preventing you from working. Read our dedicated guide on life insurance for the self-employed.
Some policies, particularly over 50s plans, do not require a medical exam or health questions. Acceptance is guaranteed regardless of your health. The trade-off is that cover amounts are lower (typically £1,000 to £25,000), premiums are higher relative to the payout, and most policies include a waiting period of 12 to 24 months during which only your premiums are returned if you die. For younger applicants, no medical exam policies may be available but often come with limited cover and higher costs compared to fully underwritten policies.
Whatever your circumstances, the most common mistake is assuming you cannot get cover without checking. A whole-of-market advisor can search across insurers who specialise in non-standard cases and often find options that direct searches miss.
Life insurance does more than provide a lump sum. Used strategically, it can clear your mortgage, reduce inheritance tax, and make the claims process faster for your family.
Most lenders do not require life insurance for a mortgage, but it is strongly recommended. If you die during the mortgage term, your family would need to keep up repayments or sell the property. Decreasing term cover is the cheapest option for a repayment mortgage because the payout falls in line with your balance. If you want your family to keep the home and have money left over, level term cover provides a fixed lump sum regardless of when you claim. Read more in our guide to life insurance for a mortgage.
If you are in the process of buying a property, it is worth arranging cover before conveyancing completes, so protection is in place from the day you take on the debt.
Writing your life insurance in trust is one of the most valuable and most overlooked steps. It means the payout goes directly to your named beneficiaries without waiting for probate, which can take months. It also means the payout is not counted as part of your estate for inheritance tax purposes. Given that estates above the £325,000 nil-rate band (or £500,000 with the residence nil-rate band) face 40% inheritance tax, placing a policy in trust can save your family a significant amount. Setting up a trust is usually free and takes a few minutes when you apply for the policy.
If the worst happens, your family needs to contact the insurer, provide a certified copy of the death certificate, and complete a claims form. Most legitimate claims are paid within 5 to 10 working days. UK insurers paid out 98.3% of life insurance claims in 2024, according to the Association of British Insurers. Claims are typically rejected when the policyholder did not disclose relevant medical information at application, the death fell within an exclusion period, or the policy had lapsed due to missed premiums. Our step-by-step guide to making a life insurance claim covers what your family needs to do and how to handle a disputed claim.
FAQ
If anyone relies on your income, life insurance is one of the most cost-effective ways to protect them. A healthy 30-year-old can get £250,000 of cover for around £7 to £10 per month. That is less than most streaming subscriptions but would pay off a mortgage or fund years of living costs. If you have no dependants, no mortgage, and no debts, you may not need it yet, but it gets more expensive with age, so locking in a low rate early can save money long term.
Standard life insurance pays out on death within the policy term. It does not cover critical illness (unless you add it as an option), loss of income from illness or injury (that requires income protection), or unemployment. Most policies exclude death resulting from illegal activity, and some have exclusions for extreme sports or hazardous occupations. Suicide is usually covered after an initial exclusion period of 12 months. Always check the specific exclusions in your policy document before you buy.
Yes, though it is uncommon for a complete refusal. Insurers may decline cover if you have a terminal illness, a very high-risk occupation, or a recent history of serious health issues. More commonly, they will offer cover with a higher premium, specific exclusions, or a postponement until a condition stabilises. If one insurer declines you, a broker can search for alternative providers who take a different view on your particular circumstances.
Death-in-service benefit from your employer typically pays 2 to 4 times your annual salary. This may be enough for some people, but it is tied to your job. If you leave, get made redundant, or retire, the benefit stops. It also may not be enough to cover a large mortgage and years of family living costs. Many people use employer cover as a baseline and top up with a personal policy to fill the gap.
Yes. There is no limit on the number of life insurance policies you can hold. Many people have multiple policies for different purposes: one to cover a mortgage, another to replace income for their family, and perhaps a whole of life policy for inheritance tax planning. Insurers may ask about existing cover during the application to ensure the total amount is reasonable relative to your income and circumstances.
If you miss payments, most insurers give you a grace period (usually 30 days) to catch up before cancelling the policy. Once cancelled, term life insurance has no cash value, so you lose all the premiums you have paid with nothing in return. Some whole of life policies with an investment element may have a surrender value, but it is often significantly less than the total premiums paid. If you are struggling with payments, contact your insurer before missing a payment to discuss your options.
Straightforward applications can be approved within 24 to 48 hours. If you have pre-existing health conditions, the insurer may request medical reports from your GP, which can take 4 to 8 weeks. Cover usually starts from the date you make your first premium payment. Applying through a broker can speed things up because they know which insurers process certain conditions faster and can pre-qualify your application before submission.
Most insurers allow you to increase your cover at certain life events, such as getting married, having a child, or taking out a larger mortgage, without further medical underwriting. This is called a guaranteed insurability option and is worth checking for when you buy. Decreasing cover or shortening the term is usually possible too. However, switching policy type, for example from term to whole of life, typically requires a new application.
Most UK life insurance policies cover suicide after an initial exclusion period, typically 12 months from the start of the policy. If death by suicide occurs within this period, the insurer will usually return the premiums paid rather than paying the full sum assured. After the exclusion period, a legitimate claim for death by suicide is treated the same as any other claim.
Life insurance typically refers to term policies that cover you for a set period. Life assurance usually refers to whole of life policies that guarantee a payout whenever you die. In everyday language, the terms are often used interchangeably. The key practical difference is that term insurance only pays out if you die during the term, while whole of life assurance always pays out, making it more expensive.
Probably not yet, unless you have debts that someone else has co-signed, such as a joint mortgage. Without dependants, there is no one who would suffer financially from your death. However, buying a policy while you are young and healthy locks in lower premiums. If your circumstances change later, for example you have children or buy a home with a partner, you already have affordable cover in place.
Yes. Different insurers have different underwriting criteria, so a refusal from one does not mean all will decline. A broker who works with specialist insurers can often find cover where a direct application failed. Your situation may also have changed since the refusal: if a health condition has stabilised or improved, you may now qualify on better terms.
Critical illness cover pays out a lump sum if you are diagnosed with a specified serious illness, such as cancer, heart attack, or stroke. It is separate from life insurance, which only pays out on death. Many people buy both because being diagnosed with a serious illness can be financially devastating even if you survive. You can add critical illness cover to a life insurance policy or buy it as a standalone policy. See our guide on life insurance vs critical illness cover for a detailed comparison.
Banks typically sell policies from one or two insurers, so you only see a fraction of the market. A whole-of-market broker compares policies from dozens of providers to find the best combination of price, cover, and terms for your situation. Brokers are particularly valuable if you have health conditions, a non-standard occupation, or complex requirements, as they know which insurers are most likely to offer competitive terms for your circumstances.
Contact your insurer in writing or by phone. Most policies have no cancellation fee or exit charge for term life insurance. If you cancel within the first 30 days (the cooling-off period), you will get a full refund of any premiums paid. After that, term policies have no cash-in value, so you simply stop paying and the cover ends. Whole of life policies with an investment element may have a surrender value, though it is often low in the early years.
Level, decreasing, and increasing term cover explained with costs and who each type suits
Read Full Article
How whole of life policies work, what they cost, and when they make financial sense
Read Full Article
Guaranteed acceptance cover with no medical questions and fixed monthly premiums
Read Full Article
Regular tax-free income for your family instead of a one-off lump sum payout
Read Full Article
What affects your premium and how to find cheaper life insurance quotes
Read Full Article
How smoking affects life insurance prices and how to get cheaper cover
Read Full Article
Which conditions are covered, which insurers specialise, and how to apply
Read Full Article
How trusts speed up payouts, reduce inheritance tax, and protect your family
Read Full ArticleOur services
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Life Insurance
Compare life insurance quotes from leading UK providers. Our expert advisors help you find the right cover for your family.
Life Insurance
Compare life insurance quotes from leading UK providers. Our expert advisors help you find the right cover for your family.