Compare Life Insurance

Never a fun topic to discuss, but important none the less. Life insurance is a contract between you and an insurance company that pays out money to your beneficiaries in the event of your death. The amount of money paid out depends on your age, health, and policy type when you apply for life insurance.

The main purpose of life insurance is to provide a lump sum or steady stream of income to your family if something happens to you, such as an unexpected death or disability. Life insurance can also help pay off debts like mortgages after someone dies.



Types of Life Insurance

You have several options when it comes to purchasing a policy:

Level term life insurance – this policy will pay out as a lump sum to your beneficiaries when you die. The amount of cover received will stay the same throughout the policy term. This money could then be used to help your family pay off any debts and pay for regular bills.

Decreasing term life insurance – this policy will also pay out a lump sum to your beneficiaries when you die. The level of cover will reduce in line with payments on your mortgage. This type of policy is normally cheaper than Level term life insurance because the level of cover reduces over time and should only be taken to protect a mortgage.

Whole of life insurance – as the name suggests, covers you for the entirety of your life. This policy will pay out a lump sum when you die, providing you have kept up with your monthly premiums. It can be used to help leave money behind for things such as funeral costs or to offset the cost of inheritance tax.

Joint life insurance – covers two people, normally a couple. If one of the policyholders were to die, the pay-out would be settled and the cover on the remaining policyholder would stop. This type of cover can be taken out on both a decreasing term and level term basis.

Over 50’s life insurance – is a type of whole of life insurance and usually offers smaller levels of cover as it is mainly taken out to protect funeral costs or to leave a small amount of money behind to family. Providing you are between the ages of 50-80, you can apply for cover without answering any medical questions, making it very popular.

compare life insurance

Amount & Length of Cover

Normally, the amount of cover required is at least enough to pay off the remaining balance of your mortgage and any debts/loans whilst also leaving a lump sum amount for your family to help with bills in your absence.

The length of your cover should correlate with what remains on your mortgage term. If you don’t have a mortgage but have children, your term should be in place to support your youngest child up until they are fully independent.

Do I Need Life Insurance?

Life insurance is not mandatory but if you have a mortgage or dependents, it is strongly advised that you have some level of cover. Life Insurance policies provide financial support to your family and loved ones if you were to pass away.

It is important to review your life insurance requirements throughout your life as naturally your needs will change, for example: you may have a mortgage and/or a young family, however as you get older, you may pay off your mortgage, and now want to protect your funeral costs or provide a lump sum.

How Much Is Life Insurance?

The main factors that impacting your life insurance costs are:

-How much cover you require

-The term you need the cover for

-What type of policy you opt for (Level term life insurance, decreasing term life insurance, whole of life…)

-Your current state of health and any pre-existing medical conditions

-Your age, the older you are the higher the premiums

-Whether you are a smoker or not


Free Additional Services with ANY Policy


If you take out any Insurance policy whether Life, Health, Over 50’s or Income Protection with our partner, you are entitled to:

– A single will worth £80 or a Couples Mirror Will worth £130 – provided by MyLastWill –

– Free WellBeing Support through HealthAssured – supporting your financial, mental and physical wellbeing. HealthAssured are an award winning support service that offer: 24-7 Confidential Support Line and an Online Health Portal for easy access –

Some areas you can use these services for include: Family Issues, Financial and Tax Information, Legal Information, Bereavement and Housing Concerns.

(Upon your policy going live our partner will send you a welcome email with details on how to access the services)


Critical Illness Cover


Critical illness cover is an add-on you can apply to a life insurance policy. It’s purpose is to cover you and pay-out if you were to be diagnosed with one of the critical illness conditions listed within the policy.

This money can be used to help pay for any medical treatments you may require, bills and other expenses and potentially a portion of your mortgage.


FAQS

Some providers offer a guaranteed insurability option which allows you to increase your cover without the need for further medical underwriting. This will only cover significant life events such as getting married, having children or increases to your salary or mortgage. We recommend checking your policy documents to see if this option is available to you with your provider

You can have multiple policies to protect against different things, such as your family or mortgage. However, it may be more cost-effective to have a single policy that’s covers everything you need.

Most insurers will pay out on a claim if you have been diagnosed with a terminal illness and given less than 12 months to live. This pay-out could be used to help with things such as: medical expenses, paying off your mortgage and allow you to spend your final months with your friends and family.

Every insurer will have a medical questionnaire that needs to be completed. This allows them to underwrite each applicant individually. If you do have a pre-existing medical condition, the insurer may write to your GP to obtain further information and in some cases, would increase your premium whilst offering the same level of cover. It is important you are honest on your application and declare any pre-existing condition/s you may have, if you don’t declare these conditions, it could result in a claim being rejected.

Critical illness cover is an add-on you can apply to a life insurance policy. It’s purpose is to cover you and pay-out if you were to be diagnosed with one of the critical illness conditions listed within the policy.

This money can be used to help pay for any medical treatments you may require, bills and other expenses and potentially a portion of your mortgage.

Prior to choosing a the best cover for Life Insurance, it is useful to understand the types of cover available:

Level term life insurance – this policy will pay out as a lump sum to your beneficiaries when you die. The amount of cover received will stay the same throughout the policy term. This money could then be used to help your family pay off any debts and pay for regular bills.

Decreasing term life insurance – this policy will also pay out a lump sum to your beneficiaries when you die. The level of cover will reduce in line with payments on your mortgage. This type of policy is normally cheaper than Level term life insurance because the level of cover reduces over time and should only be taken to protect a mortgage.

Whole of life insurance – as the name suggests, covers you for the entirety of your life. This policy will pay out a lump sum when you die, providing you have kept up with your monthly premiums. It can be used to help leave money behind for things such as funeral costs or to offset the cost of inheritance tax.

Joint life insurance – covers two people, normally a couple. If one of the policyholders were to die, the pay-out would be settled and the cover on the remaining policyholder would stop. This type of cover can be taken out on both a decreasing term and level term basis.

Over 50’s life insurance – is a type of whole of life insurance and usually offers smaller levels of cover as it is mainly taken out to protect funeral costs or to leave a small amount of money behind to family. Providing you are between the ages of 50-80, you can apply for cover without answering any medical questions, making it very popular.

Our partners dedicated team of trained and qualified advisers are here to support and help you with the various life insurance options.

This is not always required, however, most mortgage lenders do ask that appropriate life insurance is taken out to protect the mortgage, but it doesn’t need to be taken through your mortgage lender and it pays to shop around.

This type of policy has a set term, for example, 20 years. A claim can be made if you were to pass away during this term and if not, the cover will end. The term you choose should always link to either your mortgage, when your dependents reach a certain age or even when you want to retire.

Whilst we cannot advise you on what is best in regards to tax, putting a life insurance policy in trust is a smart thing to do, as it means if a claim were to be made, the money would be paid directly into the trust where your beneficiaries can easily access it. If your policy is not put into trust then your beneficiaries may be required to pay inheritance tax on the Life Insurance pay-out, depending on the value of your estate.

The premiums for life insurance are calculated based on a few factors: the term of the policy, the amount of cover requested and what add-ons you may choose. For example, critical illness cover or waiver of premium.

Each insurer will have its own criteria on how the premium will be calculated. To be accepted for life insurance, each insurer will have their own set of questions which will need to be completed and depending on the risks presented, there may be an increase in the premium to justify the higher risk. This is why it is worth comparing different insurers upon choosing a policy as one may increase your premium based on what you disclosure and another may not.

As always it is worth comparing different insurers to make sure you get the right life insurance for you. Some insurers could offer a cheap initial quotation and then increase your premium because of things like medical disclosures. Our partner has access to the widest panel of Life & Health insurers and will be able to help advise the best insurer and policy for your needs.


SavingSuperStore are an Introducer Appointed Representative of Assured Futures Ltd, who are authorised and regulated by the Financial Conduct Authority (FCA) under FRN: 176392.