0808 189 0463


        0808 189 0463

        Updated: April 17, 2024

        Life Insurance

        All you need to know about life insurance, from how to works to guidance about securing the right policy for your needs and circumstances

        Ask A Quick Question

        We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in life insurance. Ask us a question and we'll get the best expert to help.

        FCA Logo
        1 of 2
        2 of 2 Send!

        No impact on your credit score

        Getting life insurance that financially protects you and your family can bring a real peace of mind.

        Leaving money to loved ones is important to many people, especially in circumstances where there’s a mortgage to be paid off or when there are children.

        But how can you ensure that the life insurance cover you buy is the right one for you?

        In this guide about life insurance, we aim to answer all the frequently asked questions, including what is life insurance and how does it work?

        In a hurry? We work with experts who are always ready to answer your questions. Call 0808 189 0463 or make a quick enquiry and we’ll match you with an expert who will help explain the reasons why you might need life insurance.

        What is life insurance cover?

        Life insurance cover is essentially an agreement between you and an insurance provider that if you pay regular premiums and meet the terms and conditions laid out in the policy, they will pay out a lump sum in the event of your death.

        Many people decide to take out a life insurance policy to provide financial protection for their family. The money can usually be spent as the beneficiaries see fit, whether that be to pay for a mortgage, household bills or funeral costs.

        Speak to a expert today

        How does it work?

        There are lots of different variations of life insurance but typically, life insurance is chosen based on the needs of the customer

        Upon choosing your life insurance, you will be given options which affect how much your agreement costs, how much your beneficiary is paid when you pass away and how long the agreement lasts for.

        You will also be asked a range of questions about your health, lifestyle and medical history.

        This is because life insurance companies make money by investing the premiums you pay for your cover, in a bid to make more than they’ll have to pay in claims.

        Usually, the healthier the policyholder, the less chance of having to pay out for a claim, and therefore, the cheaper the monthly premium.

        How do life insurance policies work?

        So what is a life insurance policy and how do they work? A life insurance policy is a contract with an insurance company.

        In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured’s death.

        If you’re considering buying life insurance, it can be beneficial to have an understanding of the information within life insurance policies and how the contractual terms might affect you.

        If you’d like to have life insurance policies explained in further detail, speak to one of the expert insurance advisors we work with.

        Make an enquiry and we’ll match you with an expert who can talk you through why it’s important for some individuals to have life insurance and how the varying policies could affect your family.

        How does life insurance pay out?

        Before proceeding, it’s also important to know how life insurance policies are paid out.

        Life insurance will not pay out automatically, and a claim must be made directly to the insurer after the death of the policyholder.

        Somebody, typically a spouse or close relative, will need to contact the insurer to inform them of your death. The number to call to make a claim should be on the policy documents, but they’re easy to locate online also.

        Anyone can start a claim, but the recipient of the money will be determined by the policy or the will of the deceased.

        When do life insurance policies pay out?

        Before paying out for a policy, the insurance company may ask some questions so that they can process a claim. Once a claim has been handled, it could take up to 60 days before any money is transferred to the beneficiary.

        The information they need may include:

        • The name of the person who had the policy
        • The date and cause of death (as stated on the death certificate)
        • The policy number (if you have it)
        • Your name and contact details
        • Your relationship to the person who has died
        • A copy of the death certificate

        If you’re interested in a life insurance policy but want to know when that life insurance will payout, ask an advisor to help you figure out what type of insurance will suit your circumstances.

        All the experts we work with are independent financial advisors. They have the tools, knowledge and experience to help you find the right cover at the best available price, taking all your needs and circumstances into account.

        Do I need it?

        Life insurance can be considered to some as an additional cost that might not be necessary, so with that in mind, do you have to have life insurance and is it compulsory?

        Whether you need life insurance is, in most cases, up to you. For many people, however, having their policy in place has meant that despite their death, their family has still been able to afford to pay their mortgage.

        Many families depend on the income brought in by a working adult, so losing this can have a disastrous effect, especially if that family member passes away suddenly or unexpectedly.

        This is one of the reasons why it is common for mortgage lenders to recommend that their borrowers take out a life insurance policy.  No one wants to think about the possibility of a loved one passing away but having life insurance can provide a fiscal safety net for many families, who otherwise may face financial hardship.

        But if you’re not buying a home or currently own a home, why take out life insurance? Let’s take a look at some of the life events which could trigger a need for life insurance…

        When should I get a life insurance policy?

        There are lots of reasons why an individual should have life insurance but throughout our lives, there are milestones or events that remind us of the importance of taking out a policy.

        Many people consider life insurance in the following circumstances…

        You’ve just got married

        One of the benefits of marriage is knowing that your significant other will be a source of support and companionship for life. Unfortunately, over 700,000 women alone become widowed each year, meaning that many people are left with the financial burden of a mortgage, children or the expenses of life.

        To prevent this hardship and to leave your partner with financial support, many newlyweds take out life insurance.

        You’re having a baby

        The cost of raising a child is expensive, even before you add up considerations such as private education or costs of university.

        Some people want the reassurance of knowing that in the event of their absence, they can provide for their children and help them in the future, whether that be through inheritance or just being able to leave money for expenses.

        In the excitement of bringing a newborn baby home, it’s easy to forget about getting life insurance and it might not necessarily be something you want to think about.

        But taking out a life insurance policy can allow you to enjoy the present without financial fears getting in the way.

        Planning ahead

        The average cost of a funeral in the UK is £3,700 and with that in mind, many people don’t want to leave this vast sum to their loved ones.

        Depending on your circumstances and the terms and conditions of your policy, a life insurance payout could cover the cost of funeral expenses.

        To discuss why life insurance is so important and to learn how easy it is to apply, contact us for a free, no obligation chat and we’ll match you with one of the  experts we work with.

        How to choose a good life insurance company

        If you’re trying to find a good life insurance company in the UK, it can be helpful to work with an advisor who can discuss the variations of policies and advise which policy is best suited to your needs and circumstances.

        Before shopping around for the best priced policy, you should consider:

        • How much cover you want or need to insure your life for
        • Whether you want a guaranteed payment on your death or only need to insure your life for a specific period of time (e.g. while you have a mortgage or up until your children are grown up and left home)
        • How you wish your loved ones to receive the money, in the event of your death (lump sum payment or monthly income for a set period of time
        • Additional benefits provided by being a policyholder

        The advisors we work with can also compare customer reviews and satisfaction levels, as well as the rate of successful claims.

        These factors can help insurance advisors determine which insurance company can provide you with the most efficient level of cover.

        Call an expert on 0808 189 0463 for guidance and advice about life insurance policies in the UK and how to find the best deal.

        What type of life insurance do I need?

        The clauses and conditions within a personal life insurance policy can vary, so it’s important to think about the purpose of your life insurance and what it is you need your agreement to include.

        There are lots of life insurance cover options and it can be helpful to consider whether you want your agreement to cover just you, or you and your partner. If the latter would be more suitable for your situation, then you may wish to consider a joint life insurance policy.

        The insurance advisors we work with can take you through the different life insurance options that may be available to you. Their advice is tailored to best fit your needs and expectations and is always confidential.

        Make a quick enquiry for a free, no obligation chat and we’ll introduce you to one of the independent experts we work with.

        They will be able to answer all your questions and ensure you get the right level of cover and the right type of cover for the best available price.

        What to look for in a policy

        When buying life insurance, always ensure that you are aware of the key factors that could affect your beneficiaries.

        Clarity is key when it comes to life insurance, so before signing an agreement, be aware of:

        • Who the life insurance pays out to
        • How long it takes the life insurance company to pay out

        How long does the policy last for?

        It’s also important to compare how long each agreement lasts for as this can surprisingly vary.

        Not many people are aware that some life insurance policies can be limited to a restricted period of time (called term life) or it can stretch over a lifetime.

        For some policy holders, a shorter agreement is necessary, perhaps because they have a shorter life expectancy, whereas others prefer an agreement that is ongoing and last a lifetime.

        The longevity of your agreement, among other factors, can affect the price you pay for your insurance.

        You may find that having a longer life expectancy and healthier lifestyle can reduce the cost of your life insurance as these factors could be seen to reduce the likelihood of a life insurance claim.

        What to look out for when buying life insurance

        Like any financial product, taking out life insurance should be taken with professional advice and thought.

        Below are some factors to consider when buying life insurance:

        Increased premiums

        The majority of life insurance companies will be cautious when it comes to providing cover for customers with health issues. You may raise red flags with a life insurance company if you are considered high risk due to having obesity problems, diabetes, heart disease, high blood pressure or high cholesterol, depression or another chronic condition.

        Serious health issues including cancer, or multiple health issues can lead to high rates, policy excusions or even a rejection.

        However, having a health condition or a reduced life expectancy doesn’t necessarily mean that the price of your insurance will be sky high. In fact,there are life insurance companies that specialise in protection for customers with health conditions.

        To find out more about whether you should take out life insurance if you have a pre-existing medical condition and how to find affordable cover, speak to an advisor.

        Terms and conditions

        Thoroughly checking your life insurance agreement for any unfavourable terms or conditions can be tasking and a lot of people prefer to ask an insurance advisor to do it on their behalf.

        Using their experience and a keen eye for detail, they can highlight any terms that could be problematic in the event of a claim. On doing this, they can advise you on better alternatives or explain how you can avoid claim issues in the future.

        For advice on life insurance cover, speak to one of the expert insurance professionals we work with. Make an enquiry and we’ll match you with someone who can help.

        How to get life insurance

        Read the points below to explore the different avenues you could take when buying life insurance or contact us for bespoke life insurance tips and advice.

        Buy life insurance online

        The internet can be a great resource of information, especially if you’re in a hurry. However, with a wealth of information and sometimes conflicting information, it can be difficult to establish which websites provide accurate data.

        Life insurance rates can change frequently and some websites can soon become outdated with unhelpful or misleading information.

        By searching online for life insurance, you run the risk of overlooking deals from every provider, especially if the website has ties with selected insurers.

        So how can you apply for life insurance online without missing out on better deals elsewhere?

        Have an insurance broker find the best deals

        Independent insurance brokers, like those we work with, have access to a database of all of the current rates and providers and the information they use is updated in real-time.

        This real-time accuracy helps customers avoid missing out on better or cheaper rates whilst also being able to access a wider range of choices for life insurance schemes.

        If you’re still unsure about whether you should get life insurance or how to buy it, contact an advisor who can explain the benefits and scour the uk life insurance market to find the best deal for you.

        You may also find our article comparing critical illness cover useful, if you wanted additional cover or wanted to include more cover in your life insurance policy.

        If you have any questions about why you should consider insurance or how you can get a life insurance policy, then feel free to make an enquiry so we can pass you over to an advisor.

        Speak to an expert for life insurance advice

        To truly understand which life cover insurance policy is best for you and your family, seek independent insurance advice today.

        Talking about why you might need life insurance can be a difficult subject to broach with loved ones but with the help of an advisor, you can find the protection you need at the best available price.

        Call 0808 189 0463 or send your questions to an advisor.

        Ask A Quick Question

        We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in life insurance. Ask us a question and we'll get the best expert to help.

        FCA Logo
        1 of 2
        2 of 2 Send!
        Pete Mugleston

        Pete Mugleston

        Mortgage Expert, MD

        About the author

        Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

        Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

        Continue Reading

        Chevron Right Life Insurance Overview

        Chevron Right Life Insurance

        Chevron Right A Quick Guide to Guaranteed Life Insurance

        Chevron Right Best Life Insurance

        Chevron Right Can I Combine Life Insurance and Income Protection Insurance?

        Chevron Right Changing Life Insurance

        Chevron Right Converting Term to Whole Life Insurance

        Chevron Right Declined Life Insurance

        Chevron Right Divorce and Life Insurance Policies

        Chevron Right Do I Need Life Insurance Plans for my Children?

        Chevron Right Family Life Insurance

        Chevron Right Endowment Life Insurance

        Chevron Right Getting Life Insurance for Someone Else

        Chevron Right Guide to the UK’s Top Life Insurance Companies

        Chevron Right How Do You Compare Life Insurance?

        Chevron Right How Many Life Insurance Policies Can I Have?

        Chevron Right How Much is Life Insurance in the UK?

        Chevron Right How Much Life Insurance Do I Need?

        Chevron Right How to Cancel Your Life Insurance Policy

        Chevron Right International Life Insurance for Expats

        Chevron Right Is Life Insurance Worth It?

        Chevron Right Joint UK Life Insurance Policies

        Chevron Right Life and Accident Insurance

        Chevron Right Life and Health Insurance

        Chevron Right Life Insurance – What Happens If My Circumstances Change?

        Chevron Right Life Insurance and Inheritance Tax – A Quick Guide

        Chevron Right Life Insurance Beneficiary Rules

        Chevron Right Life Insurance for People Over 50

        Chevron Right Life Insurance for People Over 60

        Chevron Right Life Insurance for Over 65s

        Chevron Right Life Insurance for People Aged 70 and Over

        Chevron Right Life Insurance for the Self-Employed

        Chevron Right Life Insurance for Women

        Chevron Right Life Insurance for Young Adults

        Chevron Right Life Insurance Savings Plan

        Chevron Right Life Insurance Tax Guide

        Chevron Right Life Insurance When Pregnant

        Chevron Right Life Insurance with Cash Back

        Chevron Right Life Insurance With No Medical

        Chevron Right Mortgage Life Insurance

        Chevron Right Pension Life Insurance

        Chevron Right Putting Life Insurance into Trust

        Chevron Right Quick Life Insurance

        Chevron Right Senior Life Insurance

        Chevron Right Short-Term Life Insurance

        Chevron Right Should I Take Out Funeral Life Insurance?

        Chevron Right Should You Use a Life Insurance Broker?

        Chevron Right Types of Life Insurance

        Chevron Right Understanding Life Insurance Quotes

        Chevron Right What Does Life Insurance Cover?

        Chevron Right What’s the Difference Between Life Insurance and Life Assurance?

        FCA Disclaimer

        *Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

        Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.