Understanding insurance doesn't have to be complicated. Learn the basics in simple, clear language.
A contract where you pay regular premiums, and if you die during the policy term, your beneficiaries receive a tax-free lump sum. It's financial protection for your loved ones.
Term: Temporary coverage (10-30 years), cheaper premiums
Whole: Permanent coverage, higher cost, includes savings
Death benefit stays the same throughout the term. Most popular choice for family protection. Example: £300,000 coverage for 20 years.
Death benefit reduces over time, usually matching a mortgage balance. Cheaper premiums, ideal for mortgage protection.
Pays a regular income instead of a lump sum. For example, £2,000 monthly until the end of the policy term.
Covers two people (usually spouses). Pays out when the first person dies. Cheaper than two separate policies.
30-year-old non-smoker:
£200,000 for 20 years = £15-25/month
£500,000 for 25 years = £35-50/month
Compare prices from multiple insurers. Quotes are free and take 2 minutes. No commitment required.
Answer questions about your health, lifestyle, and family medical history. Most applications don't require a medical exam.
Insurer reviews your application. May request medical records or a phone interview. Usually takes 2-4 weeks.
Once approved, you're covered! Set up automatic payments and receive your policy documents.
Premiums increase with age and health changes. The best time to buy life insurance is when you're young and healthy.
Many people underestimate their needs. Consider future expenses, inflation, and your family's long-term financial goals.
Update your beneficiaries after major life events like marriage, divorce, or having children. Keep your policy current.
Always be honest about health and lifestyle. Lies can void your policy and leave your family without protection.
Most experts recommend spending 1-3% of your income on life insurance. For a £40,000 salary, that's £33-100 monthly.
Until kids are independent: 20-25 year term
Until mortgage is paid: Match your mortgage term
Until retirement: 30+ year term