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Life insurance protects what’s most valuable in your life. Protect your loved ones today with Life Expert.
Why You Should Have Life Insurance
It is crucial to think about ways to minimise the effects of your absence on some aspects of your family’s daily existence.
A life insurance policy cannot possibly cover the cost of anyone’s passing. It serves as a safety net for finances, allowing children and partners to process their loss at their own pace while also knowing that some of their financial concerns would be at least partially allayed. When the life assured passes away, a life insurance policy pays a lump sum in exchange for a monthly premium.
Knowing you have taken every precaution to be ready for a situation in which you are no longer present and knowing that your family will be cared for and have financial assistance, getting a life insurance policy may help you avoid having to worry about a situation that no one wants to think about.
What is life insurance?
It is a crucial safety net. If the worst was to happen and you passed, your policy will pay out.
How much does it cost?
Your monthly fee depends on what you get covered for but usually between £10 – £20 a month.
Isn’t it super complicated?
Not at all. Our friendly team of advisors are here to help you through every step of the process.
Does it pay out?
It really does. 98% of UK life insurance claims result in a successful pay-out.
Do I really need it?
You really do. Nobody lives forever and it offers complete peace of mind.
What are the benefits of life insurance?
There are many reasons why you might want to consider life insurance. A pay out could:
- Ease the financial burden and upheaval of losing a partner or parent.
- Compensate for the lost earnings your family relies on.
- Help pay any unpaid debts your loved ones may be liable for,
- Cover your outstanding mortgage repayments, so your loved ones won’t be at risk of losing the family home.
- Cover your funeral costs.
If you’re also worried about what would happen if you fell seriously ill, you could take out life insurance with critical illness cover. This could help cover lost earnings if you’re critically injured or ill and unable to work.
How does life insurance work?
Life insurance provides a lump sum payout upon the policyholder’s demise, distributed to the designated beneficiaries if the policyholder passes away during the policy’s duration. This period may span a specified number of years or extend throughout the policyholder’s lifetime.
When taking out a life insurance policy, you will want to consider the following:
Cover Amount
The required income to sustain your family or dependents in your absence, encompassing essential expenses such as housing (mortgage or rent), outstanding debts, childcare, education, and funeral expenses.
Length of Policy
Consider your current situation and anticipate how it may evolve over time. This includes factors such as the duration your dependents will require financial assistance and your partner’s expected retirement age.
Joint vs Single Life Policy
A joint policy is typically more cost-effective but offers a single payout, triggered upon the first policyholder’s passing. In contrast, separate policies provide ongoing coverage for each individual, so if one policy pays out, the other policy remains unaffected.
Did you know? According to the Association of British Insurers (ABI), 97.5% of all life insurance, income protection and critical illness claims were paid in 2022, totalling £6.85 billion.
How much cover do I need?
The ideal level of life insurance coverage for your needs hinges on your unique circumstances. Generally, the greater the coverage you acquire, the higher your life insurance premium will be. Nonetheless, it’s essential to avoid underestimating your coverage, as this could potentially leave your loved ones in a financially precarious situation.
It’s crucial to also consider how your circumstances may evolve over time. In the unfortunate event of a non-working partner’s passing, you might encounter additional expenses for childcare or caring for an elderly parent.
Similarly, if a working partner were to pass away, you might find it necessary to reduce your work hours to provide support for your children or other dependents.
What does life insurance cover?
Knowing what life insurance could cover is important so that you understand how you can support your loved ones after you’re gone.
Covered
- Most common causes of death
- Cancer
- Heart attack
- Accidental death
- Unexpected illness
Possibly Covered
- Suicide (if you’ve had the policy for at least 12 months from the start date or the date you increase your cover) or self-inflicted injury
Deaths not covered
- Pre-agreed conditions
- Drug and alcohol abuse
- Committing a criminal offence or provoking an assault
- High-risk activities – like dangerous sports
- Death if information given when applying for the policy was untruthful or inaccurate
Illness/injury not covered
- Total disability in your lifetime unless added
Certain insurance policies might offer an early payout in the event of a terminal illness diagnosis, provided that your medical professionals determine you have a life expectancy of less than 12 months.
How much could life insurance pay out?
The potential payout of a life insurance policy is contingent on the specific type and level of coverage you’ve selected. In 2022, the average life insurance payout amounted to nearly £73,600, as reported by the ABI (Association of British Insurers).
However, the actual payout your beneficiaries receive may vary significantly, influenced by factors such as your monthly premium payments and the insurance provider you’ve chosen.
The precise payout amount will be clearly outlined when you receive a life insurance quote.
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How much is life insurance?
The price of life insurance depends on the level of cover, as well as the age and health of the policyholder.
Life insurance can be very good value, often starting from just a few pence a day, particularly if you take it out when you’re young. Industry research suggests that monthly premiums range from £15.85 to £30.40, depending on your individual circumstances and the type and length of cover you choose. Average costs for level term life insurance can start from £5.83 at age 30, rising to £30.20 at age 50.
What can affect the price of life insurance?
Amount of Cover
The higher the amount of pay-out you might need, the more you’re likely to pay.
Policy Length
The longer your policy lasts, the more you’ll pay in total – but you’ll be protected for longer.
Age
The cost generally increases with age as you’re more likely to develop health conditions.
Height & Weight
Used to calculate your Body Mass Index (BMI).
Medical History
To assess the risk involved in offering you a policy.
Lifestyle
You’ll be asked about your smoking habits or if you use nicotine substitutes.
FAQs
We understand that everyone isn’t a life insurance expert but that’s why we are here to help.
Who can apply for life insurance?
You must be a UK resident, at least 18 at the time of applying.
How much does life insurance cost?
Life insurance premiums can cost as little as £5 – £10 a month.
How much life insurance do I need?
It depends on your individual circumstances. You may want to think about leaving a lump sum to your dependents or help clear an outstanding mortgage if you die.
What affects the cost of life insurance?
The cost of life insurance is affected by lots of things, including your health, age and whether you smoke.
Can you cancel your policy if you no longer want it?
Yes, you can cancel your policy at any point throughout its lifetime.
What are the different types of cover?
There are many types of life insurance cover you can choose to protect your finances. These include the following:
- Level term life insurance
- Whole of Life insurance
- Decreasing term / mortgage protection insurance / payment protection insurance
- Joint life insurance
- Income Protection
- Critical illness insurance
- Income Protection Insurance
- Over 50s Life Insurance