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Compare life insurance quotes from 11 providers[3]
- 12 months’ FREE[*] Bupa Healthy Minds and Wellbeing Cover when you buy life insurance through us
- See the guaranteed price you’ll pay[2]
What is life insurance?
Life insurance can help your loved ones deal with the financial impact of your death. If you die during the length of the policy it could pay out a cash sum. If you add critical illness cover and are diagnosed with a terminal illness during your policy, you'll be covered for that too.
Why do I need it?
- If you have dependants or a partner who relies on your income, it’s important to make sure they’re taken care of
- If you have a mortgage, credit card, loan or other debt, life insurance can help your loved ones meet those financial commitments
- You might want to consider a policy that covers funeral expenses, to ease the cost for your family
Life insurance isn’t a legal requirement, but it could give your dependents financial stability when you die. Read our guide on why you need life insurance.
How does life insurance work?
Life insurance pays out a lump sum when you die. With some policies, a payout is made if you’re diagnosed with a terminal illness with a life expectancy of less than 12 months too.
You decide how long you want to be covered for, how much you want paid out, and who to, when you take out a policy.
The amount paid out can change over time.
If you take out a level term or life assurance policy, the payout is fixed. With a decreasing term policy, the payout decreases over the term of your cover.
Read more on our how does life insurance work guide.
What does life insurance cover?
You need to understand what your life insurance covers to give you the peace of mind that your family will have the financial support they need.
Cover varies from one policy to another, but there are some things that are always covered or excluded:
| Covered | Possibly covered | Not covered |
|---|---|---|
| Most common causes of death | Terminal illness | Pre-agreed conditions |
| Unexpected illness | Drug and alcohol abuse | |
| Disease | Dangerous activities | |
| Cancer | Suicide | Critical illness or injury |
| Heart attack | Disabilities or chronic illnesses | |
| Accidental death | Undisclosed health issues |
What are the typical life insurance exclusions?
If you die because of the following, you typically won’t be covered:
- Suicide or self-harm within a specified time of the policy start date (typically 12 months, but check your policy documents)
- Pre-existing medical conditions (if you hadn’t declared them)
- Dangerous activities
- Drug or alcohol abuse
If you don’t keep up with payments, your cover will usually be cancelled too.
Are you eligible for life insurance?
When you apply for life insurance, you’ll need to answer a few questions to check whether you’re eligible.
If you’re looking for a joint policy, you’ll need the below details for both policyholders.
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Things like any pre-existing medical conditions you might have, and your weight and height
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Age and occupation
Generally, the younger you are the cheaper the policy will be. How risky your job is also plays a part
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Lifestyle
Whether you smoke, drink or exercise
Life insurance calculator
Use our calculator to get an idea of how much life insurance might be right for you
Types of life insurance
There are two main types of life insurance - choose the one that meets the needs of you and your dependants.
You can also get critical illness cover added on as part of your life insurance, or bought as a separate policy.
Level term life insurance
Level term life insurance is the simplest type of life insurance. You decide the payout value and duration of the policy.
If you die within the term of the policy, your dependants will receive the payout as a fixed sum. The amount paid out stays the same regardless of when a claim is made.
Level term life insurance can be the more expensive option because the amount paid out doesn't change. Make sure to review your policy often to check the payout amount is still right for your dependents.
Advantages
- You’ll know how much the payout will be – it doesn’t decrease over time
- Premiums stay the same throughout the term of your policy – they won’t be reviewed and increased
Disadvantages
- Usually more expensive than decreasing term
- Inflation could mean your policy’s worth less than you intended in real terms when you die
- No payout if you die outside of the policy term
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Decreasing life insurance
Also known as mortgage life insurance, it’s designed to cover debts that decrease over time - like your mortgage.
So, 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.
Advantages
- Usually cheaper than level-term cover
- Can cover your mortgage so your partner or loved ones won’t be faced with losing their home if you die
Disadvantages
- Payout value decreases over time
- It might only cover your mortgage and not extend to other bills and expenses for your family
We’re giving you 12 months’ FREE Bupa Healthy Minds and Wellbeing Cover
We want to help you better protect what’s important – and that includes your mental health. We’ll give you Healthy Minds and Wellbeing cover provided by Bupa, free for 12 months when you buy life insurance through us. You’ll be able to access counselling, online support and 24/7 health advice, for the help you need, whenever you need it. * All customers living in the UK and over the age of 18 are eligible. T&Cs and limits apply. In providing Bupa Healthy Minds, Bupa may collect your personal information. Please see www.bupa.co.uk/privacy for more information about how Bupa collects, uses and protects your data.
Other relevant life insurance topics
Funeral cover
Over 50 life insurance
Mortgage life insurance
Life insurance and access to medical records
Cover for those with pre-existing medical conditions
Family life insurance and finances
Critical illness cover
The UK’s riskiest jobs report
All life insurance topics
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 10 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 or you can use our calculator to get an idea of how much life insurance might be right for you.
Try our life insurance calculator >
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.
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.
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.
Consider Inflation
The amount you choose might be worth less in real terms in a few decades’ time because of inflation.
How much does life insurance cost?
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.
Below are some examples of the monthly cost of level-term life insurance, based on age and term length.
| Sum assured | |||||
|---|---|---|---|---|---|
| Age | Term | <£100K | 100-200K | 200-300K | 300k+ |
| 20s | 20-29 years | £2.57 | £6.50 | £7.17 | £9.53 |
| 30s | 20-29 years | £4.76 | £8.70 | £11.83 | £18.27 |
| 40s | 20-29 years | £9.48 | £17.96 | £24.77 | £38.68 |
| 50s | 10-19 years | £15.56 | £25.24 | £43.88 | £61.22 |
| 60s | Up to 10 years | £20.74 | £77.88 | - | - |
Decreasing term life insurance (also called mortgage life cover) tends to cost less than level term for example, because the pay out from the policy decreases with time.
Here are some examples of the monthly cost of decreasing-term insurance, based on age and term length.
| Sum assured | |||||
|---|---|---|---|---|---|
| Age | Term | <£100K | 100-200K | 200-300K | 300k+ |
| 20s | 20-29 years | £1.99 | £5.16 | £5.28 | - |
| 30s | 20-29 years | £4.43 | £6.56 | £8.37 | £17.01 |
| 40s | 20-29 years | £7.04 | £13.71 | £21.09 | £20.73 |
| 50s | 10-19 years | £9.09 | £20.09 | £25.85 | - |
| 60s | Up to 10 years | - | - | - | - |
It’s also worth comparing premiums with and without critical illness cover as this can also influence the cost of your premiums. You can't compare and buy critical illness cover through us as a standalone policy. But you can compare life insurance with critical illness cover included.
Does life insurance pay out?
98% of life insurance claims were paid out in 2020 - totalling a record £6.2 billion
According to the ABI, May 2021
Life insurance and critical illness cover
Critical illness cover is a separate policy that can be taken out alongside your life insurance, or as its own policy. It can help you financially if you’re diagnosed with a serious illness during the term of your policy, like 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.
Claiming on your critical illness cover won’t affect your life insurance if you buy them separately.
If you buy a critical illness policy alongside your life insurance through us, it’ll pay out while you’re alive if you become critically ill. If you don’t claim a pay out for a critical illness while you’re alive, it’ll pay out in the event of your death, alongside your life insurance policy.
Top tips for cheaper life insurance
To get the most out of your life insurance cover, you could:
- Take out cover early – taking out a life insurance policy when you’re younger means your premiums won’t be as high as if you were older because you’re less of a risk
- Place the policy in trust – this gives you greater control over who benefits from and looks after the policy, as well as reducing inheritance tax
- Consider what add-ons you need – combining critical illness cover with life insurance could work out cheaper than buying them separately
- Compare policies – check what’s being offered and what’s excluded from the cover, instead of just the price
- Reassess your cover – make sure your life insurance still meets your needs and tell your insurer about any lifestyle changes
- Be honest – not being truthful about your health could mean you risk losing any payout due. If you’re not sure how to answer a question, ask the insurer
Frequently asked questions
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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.
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It’s a good idea to review your life insurance yearly. Your circumstances could’ve changed, and your life insurance might not meet your needs anymore.
It’s rarely a good idea to cancel an existing life insurance policy. But you should consider amending your policy or taking out a second policy if your circumstances have changed.
Times when you might need to amend or take out more cover include:
- Changes to health or lifestyle
- Divorce or separation
- New job or redundancy
- More debt, or an increased mortgage
- Changes to beneficiaries
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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.
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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.
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You can get life insurance with pre-existing medical conditions. But expect to pay more and have less insurers to choose from.
You need to tell insurers about any pre-existing conditions you have. If you don’t, you won’t be covered for them.
When you take out cover, you’ll be asked questions about your medical history.
You could choose to exclude the condition from your cover, which might lower your premiums. But it does mean if you die as a result of that condition, there’ll be no payout.
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Some providers will give you time to make up missed payments without your policy being affected. But this’ll be on a case by case basis.
If you miss payments, and don’t get in touch with your insurer, your policy will be cancelled. You won’t get any of the money you’ve paid back. If you’re worried you can’t keep up with payments, contact your insurer.
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If you smoke, or use nicotine products like vapes, your life insurance will cost more. Most insurers will still risk rate you as a smoker if you’ve quit within the last 12 months too.
If you’ve already got life insurance and you’ve quit smoking for longer than 12 months, tell your insurer. They might lower your premiums.
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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.
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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.
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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.
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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.
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Life insurance payouts aren’t usually liable to income tax or capital gains tax. But your estate could have to pay inheritance tax (IHT) on a payout from your policy. Writing your life insurance policy in trust should mean your estate doesn’t have to pay IHT. Plus, by writing your policy in trust your beneficiaries could get the payout quicker. Tax rules can change though, and they depend on your personal circumstances. It might be worth getting financial advice, so you can plan better for your requirements.
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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.
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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.
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.
Joint life insurance for couples
If you’re in a relationship, you could take out a decreasing term 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.
Alternatively, you can add your partner as a second applicant when you buy level-term life insurance. You’ll each have your own policy with separate cover.
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.
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.
Healthy Minds and Wellbeing cover provided by Bupa
Life’s daily stresses can put a strain on your wellbeing. Our Healthy Minds and Wellbeing cover is free for 12 months to customers who buy life insurance through us.
It’s completely free. All you need to do is:
- Compare life insurance with us
- Select ‘Yes I would like the free 12 months cover’
- Purchase your life insurance and Bupa will email you cover details
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- 24/7 counselling support line
- Up to five contracted telephone counselling sessions
- Telephone assessment
- Access to up to five face to face counselling sessions
- Online cognitive behavioural therapy (CBT) courses (available for 12 months from date of sign up)
- 24/7 legal support
- Financial guidance
- Family care services – child and elder care
- 24/7 healthline where you can speak with a nurse
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- Private medical insurance. The Healthy Minds and Wellbeing cover provided by Bupa is not a private health insurance policy. It doesn’t entitle you to any medical treatment under a health insurance policy.
- Terms and conditions apply
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Customers can access the cover by calling 0345 266 9210.
This is a confidential 24/7 line and calls will be answered by a counsellor in the team. The call charge is the same as the national call rate to 02 or 01 numbers.
Tell the counsellor that you purchased life insurance through GoCompare. They’ll ask for some details to check you’re eligible for the free Healthy Minds and Wellbeing cover.
You’ll find the online resources and self-assessment tools here.
More information on our Healthy Minds and Wellbeing cover can be found here.
Get 12 months’ FREE Bupa Healthy Minds and Wellbeing Cover when you buy life insurance with us
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Home insurance[1]For comparing quotes online, Gocompare.com introduces customers to Neilson. Which is a trading name of Neilson Financial Services Limited who are authorised and regulated by the Financial Conduct Authority no. 594926. Gocompare.com's relationship with Neilson Financial Services Limited is limited to that of a business partnership, no common ownership or control exist between us.
[2]Your cover will depend on your individual needs, circumstances and the premium you choose to pay
[3]As of February 2022, there are 11 life insurers on the panel.
Page last reviewed: 17 March 2022
Next review due: 17 June 2022