Complete Guide to Life Insurance in the UK


Life Insurance in the UK

In essence, a life insurance policy in the UK is a contract between you and the insurance company. If the worst were to happen to you, life insurance offers your loved ones a cash payout.


You will name beneficiaries in your life insurance policy who will receive your payout in the event of your death.


You’ll be protected against both natural and unintentional causes of death by paying a monthly fee for your life insurance.


To ensure that your life insurance policy offers you the protection you need, it’s crucial to make sure you understand all its terms and conditions.


In the UK, life insurance policies are typically whole-life or term-based.


This means that your insurance will either last until you pass away, or it will expire after a specific amount of time (with a payout given if you pass away during this time) (guaranteeing a pay-out).

Level Term Life Insurance in the UK

When you pass away, level term life insurance in the UK will pay out a predetermined lump sum to your loved ones (sum assured).


This demonstrates that the sum assured holds its value over the course of the life insurance policy. Your loved ones will receive the same amount when you pass away, regardless of how long your level term life insurance policy has been in effect.


Therefore, your best option for safeguarding the essential costs for your loved ones in the UK is level term life insurance. You will have life insurance protection for a set amount of time (often up to 40 years), and if you pass away during that time, a payout will be made.


The life insurance coverage ends and there won’t be a payout if the level term ends before your death.


Why not compare level term life insurance in the UK using an advised broker service licensed by the FCA like Life Expert? Our free life insurance advised service allows you to compare quotes from our panel of insurers. Get level term life insurance in the UK right now from Life Expert.

Decreasing Term Life Insurance in the UK

In the UK, decreasing-term life insurance is available to assist safeguard a repayment mortgage or other comparable obligation and can offer a cash payout in the event of your death.


Your coverage will be in effect for a predetermined amount of time, or “term,” when you purchase decreasing term life insurance in the UK. As you make monthly or yearly premium payments, the overall coverage supplied will gradually diminish. At the completion of the insurance coverage, the payout will be £0.



The term should be the same length as the remaining balance on your repayment mortgage to ensure that you have coverage in the event of your death and that the remaining mortgage can be paid off. If you make any changes to your mortgage terms, you might need to review your life insurance and possibly seek additional coverage. Make sure the life insurance policy’s term is long enough to cover the duration of your mortgage as well.


Decreasing-term life insurance in the UK is typically less expensive than traditional insurance due to the nature of the contract. Your payments with decreasing-term life insurance in the UK don’t change during the course of the policy unless you make changes.

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Whole of Life Insurance in the UK

In the UK, whole life insurance guarantees that your loved ones will get a cash lump sum payment in the case of your passing. Since the coverage is permanent once it is in place, the policy is known as whole of life.


Given that your policy is assured to pay out at some time if you continue to make premium payments, whole of life insurance in the UK is a sort of life assurance.


Due to the guaranteed payout, whole life insurance rates in the UK are often higher than those for term life insurance in the UK.


Sometimes whole life insurance policies have an upper age limit; in these cases, premium payments stop but your coverage remains in effect (this is often around 85 – 90 but this can vary between providers).


Although premiums may be cheaper at younger ages, paying this sum over the course of your lifetime may result in you paying more into the coverage than it will reimburse. You can get a guaranteed pay out with a higher sum promised than with an over-50s plan if you buy life insurance in the UK while you’re older and in good health.


When purchasing life insurance, the best way to ensure that you are getting the best life insurance policy that is based on your personal circumstances is to use an advised service that we offer here at Life Expert.

Over 50s Life Insurance in the UK

If you are between the ages of 50 and 80, you are eligible to get over 50s life insurance in the UK. It can be used to assist with financial commitments after your death, such as funeral expenses, unpaid bills, or even as a gift for the ones you cherish.


It is distributed as a single sum. If you keep paying your premiums, your loved ones will get the lump sum amount after your death.


One of the things that make over-50s life insurance so popular is the certainty of acceptance. You won’t be subjected to any medical examinations or even questions about your health.


This suggests that you can purchase life insurance that will provide a lump amount to the individuals who are important to you upon your death regardless of your health.

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Joint Life Insurance in the UK

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To ensure that their loved ones could support themselves financially in the event of their death, many people in the UK purchase life insurance policies.


Joint life insurance is the term used in the UK for a single-payout life insurance policy that covers two people. When the primary insured dies within the term of the policy, the beneficiary frequently receives this payout in the form of a lump amount. The survivor will no longer have life insurance when the policy expires and may need to purchase a new life insurance policy in the UK.


If you only require one payout, joint life insurance in the UK from Life Expert may be the best option since it is typically less expensive than buying two individual life insurance policies.


Before deciding, it’s important to weigh all of your options as well as the advantages and disadvantages of joint and individual life insurance policies in the UK.

How Does Life Insurance Work in the UK?

By purchasing family life insurance in the UK, you can give your loved ones financial security after your passing.


Your loved ones will receive a cash payout in the event of your death.


Life insurance is often seen as being complicated, but it doesn’t have to be.


Life insurance in the UK works in four simple steps:


  • Application
  • Pay premiums
  • Claim
  • Pay out

Using a life insurance broker like Life Expert in the UK allows you to avail of our advised service where we will advise you on what policies you can have, what you should have, how much cover you should have all based on your personal circumstances and budget.

What Should Life Insurance in the UK Cover?

The following points are things to consider when working out what your life insurance should cover:


  • Your lifestyle.
  • Your age (how long until you’re at retirement age).
  • How much you can afford.
  • Whether you’re a parent or have dependants.
  • Number of children that depend on you.
  • Age of your children (how long until they are financially independent).
  • The size of your mortgage.
  • Whether you have personal savings.

In general, if you have dependants and a mortgage, your life insurance should aim to relieve them of any financial worries should the worst happen to you.


A pay out from a life insurance policy could help to:


  • Pay off remaining mortgage balance so your loved ones can stay in the family home.
  • Cover future family living costs.
  • Pay for your funeral.
  • Pay off any large debts in your name.
  • Be left as an inheritance for your loved ones to enjoy.

Life Insurance Application in the UK

Once you’ve determined what you want to cover or even if you don’t know what you need, our team at Life Expert can help you through this.


During the application process you’ll be required to provide information regarding:


  • Your age.
  • Health and wellbeing.
  • Medical history.
  • Smoking status.
  • Level of cover.
  • Length of cover.

Once your application has been accepted, your life insurance cover will start.


On very rare occasions, your life insurance application may be declined.


This is only when insurers believe you to be too high risk. This can be due to a number of reasons, such as:


  • A pre-existing medical condition.
  • High-risk occupation.

By using an advised service to get life insurance, Life Expert in the UK can help you find the most suitable cover to meet your needs and priorities.

Life Insurance Premiums in the UK

Your age, health, the amount of coverage you choose, and the length of your coverage will all have an impact on how much you pay in premiums.


These factors include your age, health, desired level of coverage, and duration of coverage.


With the help of this data, insurers can determine the level of risk you represent and determine your premium accordingly.


For as long as you pay your monthly instalments on time, your coverage will continue.


If you don’t pay your life insurance premiums, your policy may expire and there won’t be a payout when you die away.

Life Insurance Payouts in the UK

A life insurance payout refers to the sum of money received by a policyholder’s beneficiaries upon their passing.


After you’ve passed away your beneficiaries, or trustee will contact your insurer to make a claim.


The insurer will then review the claim and a pay-out will be issued if the claim is valid.


In 2020, 97% of UK life insurance claims[1] were successfully paid out.


For the claim to be valid:


  • Your payments must be up to date.
  • Your policy must be in date.
  • All the information provided at application must have been correct.

The funds will be paid to your beneficiaries as a lump sum to a UK bank account.

What Happens If I Cancel My Life Insurance Policy in the UK?

Your family won’t be protected if you cancel your coverage, and neither will you.


Although there is nothing to prevent you from doing so at any moment, doing so should never be your first option.


None of the premiums that you’ve paid in will be reimbursed to you.


There shouldn’t be any additional fees for cancelling, but it’s a good idea to review your policy’s terms and conditions because they can vary between providers.


Reduce your level of coverage or look for a cheaper policy if you realise that you are no longer able to pay your premium.


Comparing quotes is even more important if you decide to cancel your policy and prefer to purchase a new one later in life because your premiums may be significantly higher because of your advanced age.

Compare Life Insurance Quotes in the UK

Now you have a better understanding of life insurance you should be able to make a more informed decision when taking out a policy.


You can use our completely fee-free and FCA-regulated advised service to purchase life insurance along with critical illness cover, income protection insurance and mortgage protection.


A friendly member of our team will be happy to help you through the process.


Get in touch to receive your free quotes today.