Compare Cheap Life Insurance Quotes

Life insurance cover is a way to protect your loved ones financially when you pass away. An amount is paid out to your beneficiary after death and your family can use this lump sum of money to cover everyday expenses. These expenses can pay off your mortgage to paying off any unpaid bills.

Benefits of Life Insurance

• Financial security and peace of mind for you, your family and your loved ones
• You can choose to either pay out your life insurance as a whole lump sum, or your beneficiary can receive it in monthly instalments
• Insurance pay-outs can be used to help pay for funeral costs, estate settlements, any unpaid expenses, debt and also to replace the loss of an income or salary
• Death benefits are income tax-free to your beneficiary
• Some life insurance policies allow you to transfer money to your heir with fewer tax liabilities, they could be estate tax-free if the policy is owned properly
• You have the advantage of receiving lower rates if you decide take out life insurance when you are younger. This is because you are less likely to have been diagnosed with a serious health problem, disease or illness. As your life expectancy is longer, your premiums would be payable over a longer period of time

You will need to consider the following things before you take out life insurance cover;

• How long you want your cover to last for
  (Minimum and maximum length of your policy)
• What you want your life insurance pay-out be used for
  (Debts, mortgage or financial protection for your family)
• How much you want to be covered for
  (Tip: Consider inflation and also the area you live in - For example; properties in London are more expensive than in the Midlands. Therefore the cost of your mortgage will be higher and you may need higher level of cover to cover the cost of this repayment after your death)
• You will need to consider whether you want to take out a single policy or whether you and your partner want to take out a joint life insurance policy
• You need to know you can afford the monthly premium payments based on your current budget. Whilst also considering the level of cover you need
• It is beneficial that you compare and gain market knowledge on the different types of life insurance policies available to you. This will ensure that you choose the right life insurance cover that meets your specific requirements
• Who specifically will be your beneficiary or heir
• You need to assess as to whether you will be classed as high risk
  (Occupational health risks or you take up high-risk activities)
• Whether you have any current health conditions or health risks
  (Whether you are overweight, you smoke or whether have been diagnosed with a serious illness or disease)

If you are under 50 and still healthy, life insurance is great value for money. It often works out at just a few pence per day, and with that you can ensure your loved ones are covered financially. This protects your loved ones should you pass away during the term of your life insurance plan.

It may not be easy to talk to a family member or a loved one about your death. But talking through and making these arrangements with them beforehand will give you peace of mind in knowing that they know they will be financially protected when you pass away.

Talking to them will also allow them more time to be knowledgeable about making a claim after your death. With you both being prepared for these eventualities, they will be able to ensure that they have all the relevant medical documentation, your life insurance policy documents and policy number(s) to hand.

If you decide not tell a significant other about your policy, it could go unclaimed and your beneficiary could miss out on the benefits of your life insurance cover.

You will need to calculate the level of cover you need before choosing the right plan for you as this depends on your personal circumstances. You can use the points below to help guide you;

• Your current annual income/ salary
• Your current assets
• The number of years that you want to replace income
• Your remaining mortgage or rental balance
• Any other expenses or debts i.e. credit cards, bills or loans
• The needs of your family and/ or loved ones
• How much you would like to leave as a gift
• Future costs i.e. childcare and educational expenses and funeral costs
• Whether you currently have ‘Death in service’ insurance
• Whether you have any other current life insurance policy

The amount you pay in monthly premium rates depend on your age, the level of cover you require and whether your income/earnings will increase in the near future.

It is more financially beneficial to take out a life insurance when you are younger because your premiums are payable over a longer period of time. As your life expectancy is longer and you are less likely to have a serious disease or illness during the term of your cover, you are considered to be less of a risk for the insurance company.

Generally, the older you are, the higher your premium rates will be. At the end of your policy term your premiums will go up excessively as the risk of you needing to make a claim with your insurer increases dramatically. Based on current market prices, your monthly life insurance premium payments will be approximately be the following amounts;

• Age : 16 – 29 year old - Approx. £14.00 - £20.00 per calendar month
• Age: 30 – 39 year old - Approx. £21.00 - £26.00 per calendar month - Average rise from previous age bracket: between 30% - 42%
• Age: 40 – 49 year old - Approx. £27.00 - £33.00 per calendar month - Average rise from previous age bracket: between 23% - 28%
• Age: 50 – 59 year old - Approx. £34.00 - £40.00 per calendar month - Average rise from previous age bracket: between 16% - 25%
• Age: 60 + years old - Approx. £41.00 - £48.00 per calendar month - Average rise from previous age bracket: between 17% - 20%

With a level-term life insurance plan, your monthly premiums will remain the same every year. Your monthly premiums are established and set at a fixed price from the start date/ anniversary date of your plan.

With a decreasing-term life insurance plan, your premiums will be assessed and calculated annually which potentially could decrease your monthly premium payments. This is because the financial risk to the insurer decreases over time.

After you have passed away, your beneficiary will be issued with a medical certificate stating the cause of death. They will then need to register your death within 5days in the UK and 8days in Scotland, this includes weekends and national holidays.

Once your beneficiary has received your death certificate they will need to file a copy of the certificate with your life insurance company. They will then review the claim and process the pay-out within approximately 4 - 8 weeks.

In the rare instance where the policy holder dies within the contestability period (2 years, from the start date of the plan). The beneficiary can expect delays of payment of up to 12 months whilst the claim is being investigated by the insurance company.

It is vitally important that you are honest with your insurer from the outset and that you ensure you disclose all relevant personal information to them so they can make sure that you are covered correctly. If any of the information given to the insurers is knowingly incorrect or intentionally misinterpreted, the insurer could deny to pay-out the claim.

Before taking out a life insurance cover, remember to always check directly with the insurer as to what types of death you are covered for under your plan. If you die by a certain type of death which is not covered under your life insurance policy, they could refuse to pay-out a claim.

(Register a death online at www.gov.uk/register-a-death)

If you are concerned about meeting your monthly premium payments towards your life insurance, please refer to your the terms and conditions or reach out directly to your insurance plan provider. They will be able to offer you their expert advice and assistance in helping you come to an agreement with payment that suits you.

It is important to note; if you suddenly stop paying towards your term life insurance policy and do not make contact with your life insurance provider, your coverage will lapse and after your policy grace period ends, you will no longer be covered

Yes, you are able to take out life insurance for a significant other as long as you can prove that you have an ‘insurable interest’.

An ‘insurable interest’ can either be a blood relative i.e. a parent or a child, your partner by marriage or your business partner. You are able to take out life insurance for these other persons as long as you are able to evidence the following;

1) That you can take a policy

2) That the person you wish to take the plan out for;

a) consents to you taking out the policy and;

b) is willing to undergo a medical examination for the purposes of obtaining the cover

3) That you would be adversely affected financially if they were due to pass away unexpectedly