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Life insurance

Compare life insurance quotes with theidol.com[1] to get the cover you need

What is life insurance and do I need it?

Life insurance pays out a lump sum to your loved ones if you pass away or are diagnosed with a terminal illness whilst your policy’s in place. It’s not a legal requirement, but it could give your dependents financial stability when you die.

It can cover any outstanding financial commitments you have - like your mortgage or loan repayments - so your family won’t be left with payments they can’t afford after you’re gone.

You have a few choices to make before you buy a life insurance policy.

For example, do you want the insurer to pay a set balance when you die regardless of how long you’ve held the policy for? Alternatively, would you prefer the insurer to decrease the value of cover as the policy gets older in line with your outstanding debts?

The policy you pick depends very much on your circumstances.

Find out all you need to know about different types of life insurance coverage below and read more about whether you need life insurance.

What information do I need to compare life insurance?

If you’re looking for a joint policy, you’ll need the below details for both of you

  1. Health

    Things like any pre-existing medical conditions you might have, and your weight and height

  2. Age and occupation

    Generally, the younger you are the cheaper the policy will be. How risky your job is also plays a part

  3. Lifestyle

    Whether you smoke, drink or exercise

Compare life insurance quotes and find the right cover for you

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Types of life insurance

There are three main types of life insurance - choose the one that meets the needs of you and your dependants.

Level term life insurance
Decreasing term life insurance
Critical illness cover

The simplest type - you decide the pay-out value and duration of the policy at the outset.

If you die within the term 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.

Find out more

Key points

  • You need to decide the pay-out amount and duration of your policy
  • The policy will only pay-out during the term period you choose
  • Your dependents will be paid a fixed sum
  • The pay-out amount stays the same throughout your policy

Also known as mortgage life insurance, it’s designed to cover debts that decrease over time - like your mortgage.

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, when there’s less mortgage to pay off.

This can be a cheaper life insurance option than level term. But if your circumstances change, and you increase your borrowing, you might find the amount isn’t enough.

Find out more

Key points

  • The amount the policy pays out decreases over time
  • The policy will only pay-out during the term period you choose

Whether you take out critical illness cover with life insurance or on its own, this type of protection can help you financially if you’re diagnosed with a serious illness during the term of your policy. It’ll help you financially if you’re unable to work, for example.

You’ll be insured for a fixed amount. It’s either paid out as a lump sum, so you can pay off any outstanding debts, or monthly payments.

Critical illness cover is usually sold as part of a life insurance policy, but you can buy it on its own if you like.

If you have critical illness cover as part of a life insurance policy, and you you are diagnosed with a specified illness or medical condition the insurer would pay out one lump sum and the policy would come to end – there’s no additional payment if you were to later die, and no further funds available for dependants at a later date.

Find out more

Key points

  • Can pay a monthly or fixed sum if you’re diagnosed with a critical illness
  • You can choose to include critical illness cover when you're comparing life insurance quotes with us
  • You can buy critical illness cover separately, but you’ll need to talk to our partners Assured Futures[1] on 0800 808 6907[¥]

Other types of life insurance

There are a number of different types of life insurance available, but they all pay out either as level term or decreasing policies.

What’s different about these types is they’re mainly based on your personal circumstances. So, the cover changes slightly.

Over-50s life insurance

If you’re aged between 50 and 79, you can get a whole of life policy without the need for medical assessments. You’ll stop paying premiums when you reach 85 or 90. There’s usually a short qualifying period at the start of the term.

Find out more >

Joint life insurance for couples

If you’re in a relationship, you could take out a policy that pays out in the event of either of you dying. It can be a cheaper option than holding two policies. But it will only pay out on the first death, after which the cover will end.

Find out more >

Life insurance for new parents

When you’ve got a little one on the way, thinking about the future is inevitable. If you were to pass away, life insurance could cover childcare costs as well as the mortgage, so your partner won’t have to worry about paying out large sums of money.

Find out more >

With pre-existing medical conditions

A pre-existing medical condition can mean fewer life insurance providers to choose from. You might also have to pay a higher premium to have your condition included on your policy. Alternatively, you can choose to exclude your existing illness from your cover altogether but the policy won’t pay out if you die as a result of the excluded condition.

Find out more >

Compare life insurance the easy way

We can help you find the right life insurance for you at the right price, so your family aren’t left with payments they can’t afford.

  1. Getting started

    Choose the amount of cover you need and the length of time you’d like to be covered for

  2. A bit about you

    Just a few details about you - it’ll take about ten minutes

  3. Get the cover you need

    Choose the best cover option for your needs and sit back knowing your family are protected

The cost of life insurance

The cost of your life insurance policy depends on quite a few things. But it’s possible to find cover from £5/month, depending on your circumstances and the type of policy you choose.[2]

How old you are, if you’re generally in good health or not, your lifestyle, and whether you smoke and/or drink all play a part. It’ll also depend on how much cover you need, and whether you choose a level term or decreasing policy.

Decreasing term life insurance (also called mortgage cover) tends to cost less than level term for example, because the pay out from the policy decreases with time.

It’s also worth comparing premiums with and without critical illness cover as this can also influence the cost of your premiums.

Average price by age of decreasing term cover

AgeAverage monthly premiumAverage monthly premium with critical illness cover
Under 30£8.89£48.41
30 – 39£15.62£74.23
40 – 49£21.40£109.46
50 – 59£30.29£123.48
60 – 69£52.25£195.94
70 – 79£57.15-

Premium prices based on quotes with theidol.com in February 2020

Average price by age of level term cover

AgeAverage monthly premiumAverage monthly premium with critical illness cover
Under 30£15.06£71.23
30 – 39£23.14£96.40
40 – 49£51.87£162.67
50 – 59£53.79£180.48
60 – 69£67.91£262.63
70 – 79£210.39-
Over 80£98.89-

Premium prices based on quotes with theidol.com in February 2020

You can either add critical illness to your life insurance cover, or buy it as a separate policy. You can't compare and buy critical illness cover through us on its own. But you can compare life insurance with critical illness cover included.


When should I get life insurance cover?

As soon as you have people who rely on your income, like a partner or children, things change. Ask yourself if they could cover the cost of the mortgage, any other debts, or everyday living without your income. If the answer is no, think about getting life insurance.

You don’t have to have a partner or children though. It can be an important part of estate planning too. Mortgage cover could be helpful if you have a family member you plan to leave your estate to, for example.

My employer offers life insurance, won’t that cover me?

Many employers offer a form of life insurance – ‘death in service’ cover - which usually offers a pay out of three or four times your annual salary (whether your death is as a result of your employment or not). If you have it, and feel it’s sufficient to provide for your family, then you might feel like you don’t need life insurance as well.

Bear in mind, when you leave your employment, this cover ceases – and there’s no guarantee your future employers will offer it as part of your package.

Life doesn’t stand still and neither should your life insurance policy. If your circumstances change, you might need to update your policy - consider switching or buying an additional policy

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How much life insurance do I need and for how long?

Deciding how much life insurance you need and how long to make the policy last for can be a difficult decision.

Generally, the advice is to take a policy worth ten times the highest earner’s annual salary. But the higher the amount you’re insured for, the higher your premiums.

We’ve put together some pointers to help. When you get a quote with us there’s a calculator to help you work all this out.

  1. What do you need cover for?

    It’ll help work out how long you need cover for too. If it’s for your mortgage, take out life insurance to cover your remaining mortgage term. If it’s to see your children through their education, make sure it covers you until your youngest finishes their education

  2. What type of cover do you want?

    You’ll have to decide whether to take out level or decreasing term cover and whether you want critical illness included or not. The more extensive your cover, the more it'll cost

  3. Make sure you’ve covered everything you need to

    It doesn’t just have to be about your mortgage, you can factor in other debts and monthly outgoings too. Things like personal loans and credit cards. Consider future costs as well. If you have children, would they need help through university? And funeral costs can be a big expense at a difficult time

  4. Consider Inflation

    The amount you choose might be worth less in real terms in a few decades’ time because of inflation

Frequently asked questions

  • Can I hold multiple life insurance policies?

    It’s possible to hold multiple life insurance policies and in some cases this might be worth considering. If, for example, you have an existing policy but need more cover, the most cost-effective way might be taking out an additional policy.

  • Is life assurance the same as life insurance?

    Technically no, but the two terms are often used to mean the same thing. Strictly speaking, life insurance pays out if something happens to you, whereas life assurance pays out when it does. So level term cover is life insurance, whereas a whole-of-life-policy is life assurance.

  • What’s mortgage life insurance?

    It’s no different to a standard life insurance policy, it’s just tailored specifically to clear any remaining mortgage debt after the policyholder's death. It’s usually a decreasing-term policy to reflect the reducing balance of your mortgage over time. Find out more in our guide.

  • Do I also need income protection?

    This is dependent on your circumstances, but the right income protection (IP) policy can be valuable as a stand-alone product or as an addition to life insurance/critical illness cover. Life insurance won’t cover you if you cannot work due to illness or disability. Some IP policies include an element of death cover.

  • What’s waiver of premium?

    It’s simply a way of insuring your monthly payments so they’ll still be paid if you’re unable to work due to ill health. Payments are made either until the end of the policy term, until you’ve reached a specific age, or until you’re able to return to work. Find out more in our guide.

  • Will my life insurance pay out if I’m terminally ill?

    Some policies include cover for terminal illness. They’ll pay out while you’re still alive if you receive a terminal diagnosis and are expected to die within 12 months.

  • Are life insurance pay outs taxed?

    Life insurance pay outs are not liable to income tax or capital gains tax but your heirs could be liable for inheritance tax on any pay out received. Writing your life insurance policy in trust could help reduce inheritance tax liabilities. But do seek advice from a tax specialist first.

  • What’s clawback?

    If a policyholder cancels within a certain period of time then the adviser or broker who sold the policy would have to repay a proportion of their commission back to the provider.

    It can help protect you from being mis-sold a policy by a broker. The broker will want you to have an appropriate policy that you’re happy with so you’re less likely to cancel it.

  • What financial help can I get if my partner dies?

    You may be eligible to claim bereavement support payment to care for you and your children if your partner or spouse dies. Bereavement benefits changed substantially from 6 April, 2017, so check what you can claim.

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Guides to life insurance

[1]For comparing quotes online, Gocompare.com introduces customers to theidol.com. For help, guidance and advice, Gocompare.com, introduces customers to Assured Futures Limited. Assured Futures Limited is authorised and regulated by the Financial Conduct Authority no. 176392

[2]Your cover will depend on your individual needs, circumstances and the premium you choose to pay

[¥]Assured Futures’ office hours are 8:30am-7pm Monday to Thursday, 8:30am-5pm on Friday and 8.30am-midday on Saturday. If you request a call-back, calls made to you by Assured Futures are completely free of charge. If you decide to call Assured Futures, calls from mobiles and landlines are free of charge. Your call may be monitored or recorded for training and security purposes

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