Life Insurance
Do you need life insurance? If your children, partner or other relatives depend on your income to cover the mortgage or other living expenses, then the answer is probably yes, since it will help provide for your family in the event of your death. As a specialist Life Insurance Adviser, we can help you determine what kind of cover you need and help you source a competitive premium. Read on for more information or visit the FAQ section below.
What is It?
An insurance that is designed to pay a tax-free lump sum or income to your dependents if you die.
How Does It Work?
You choose the amount paid out – the larger the amount, the higher the Cost of the premium. Term life insurance lasts for the period you choose and pays a fixed sum if you die in the policy term. Whole of life insurance lasts until you die, but this is likely to cost more. You can have a single or joint policy with another person.
Why Might I Need It?
To provide financial support to your dependents if you die unexpectedly so they can pay off mortgages and loans or pay the bills.
Are there different types of Life Insurance?
Yes. There are a number of variations. Here are a few key types of Life Insurance cover:
- Level Term Insurance - Usually the term, sum insured and premium are all agreed up front and will not change during the policy term.
- Decreasing Term Insurance - Often called Mortgage Protection Insurance, this cover tends to cost less than Level Term Insurance. The premium stays level but the sum insured declines over time, usually to follow the pattern of the reducing balance of a Capital & Interest Repayment mortgage.
- Whole of Life Insurance - Unlike Term Insurances, Whole of Life Insurance has no end date and will pay out on death at any time as long as the premium is still being paid. This tends to be more expensive than Term Insurance but has the greatest likelihood of a claim being made.
Which type of Life Insurance is going to be best for you will depend on your circumstances. By consulting a Life Insurance Adviser, you will get expert guidance on how to get the best type of insurance for your needs and within your budget.
How Much Does Life Insurance Cost?
Life Insurance companies will each have their own minimum level but life insurance cover starts at around £5 or £6 a month with many providers. How much it will cost in each case will depend on some key information including:
- Your age
- The sum insured (pay-out amount) selected
- How long you want the cover to last
- Whether you smoke
- Your health
Can I get Cover if I have Pre-Existing Health Conditions?
Most people will accumulate medical conditions in their lifetime. Depending on the nature and severity of the health issue, you will still likely be able to get life insurance cover. Insurance companies usually will provide an initial quote for a "normal terms" premium, based on an applicant who is in good health for their age. When you apply for cover they will ask about your health and family medical history and this will influence whether you will be offered cover at the normal premium or one which is slightly higher.
When you ask us to help you obtain life insurance cover, we use powerful research tools and our extensive experience to identify which providers are likely to provide you with cover at a competitive premium, based on your personal circumstances and medical history.
To find out more about getting Life Insurance with pre-existing medical conditions, please see our page specifically about this subject.
How is a Claim Made?
The policy pays out if you die, or in some cases, get an illness which you are not expected to survive for more than 12 months.
Contact us for advice and no obligation quotations.
Value-Added Benefits
Many modern life insurance policies include valuable added benefits for minimal or even no additional cost. Examples of these supplementary benefits include:
- Remote GP services. Consultations with a UK doctor available by phone or video.
- Prescription services. Private prescriptions as recommended by a remote GP service.
- Free Annual Health Check
- Private Diagnostics. Access non-invasive diagnostic testing for certain medical issues.
- Second opinion. Check a diagnosis and get advice on treatment options with a UK medical specialist.
- Mental health support helpline.
Each provider will have their own suite of value-added benefits. Some companies offer these free, others may make a small charge. Let us know any features that particularly interest you and we will make this part of our research and recommendation.
LIFE INSURANCE FAQ
Here are some common questions asked about Life Insurance. Got a question that is not covered?
Send it to us and we will answer it for you and maybe add it to the list below.
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Why use an Independent Financial Adviser for Life Insurance, rather than a comparison site?
A qualified Independent Financial Adviser who specialises in life insurance can be by far the best way to find the right policy for you, and the most affordable one too. Price comparison sites are an increasingly popular way to buy insurance of all kinds but with life insurance it is advisable to take a little more care. The loss of a close family member is one of the biggest upheavals a person can face, and is the worst possible time for any financial insecurity or uncertainty.
Additionally, unlike house or car insurance, life insurance is a long-term contract spanning years or even decades. Making sure the policy will provide the cover and flexibility you need is vital. Although affordable premiums are very important there are other vital factors to consider. For example, should you include "Waiver of Premium?" What is the right policy term? Are premiums "guaranteed" or "reviewable?" Is there an option to increase cover in future if circumstances change?
Increasingly, life policies also provide "value-added" benefits like remote GP services and annual health-checks. A good adviser will help you to work out if any of these services are of value to you and which providers offer the services you need.
We also recommend you choose a "whole of market" adviser, such as Money in Person. This will make sure that you will have access to the widest possible range of products and options to meet your requirements.
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What are the key types of life cover?
The key types of life cover include:
- Term insurance - gives you life cover during a pre-agreed period of time
- Critical illness - gives you cover for specific medical conditions
- Over-50 plans - gives you cover towards funeral costs, paying debts or if you want to leave some money to loved ones if you die. See our dedicated page for this cover.
- Whole of life plans (also known as life assurance) - gives you cover for your entire life; it can meet your debts or be left to a loved one when you die
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Can I get life insurance with a pre-existing medical condition?
Often you can but it is dependent on your individual circumstances. Please see the page Life Insurance & Pre-Exisiting Medical Conditions for more information about specific conditions.
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Can I get life insurance with diabetes?
Diabetes is a serious health condition affecting blood sugar levels. According to Diabetes.co.uk, more than four million people in the UK are diagnosed as diabetic.
Can you get life insurance if you have diabetes?
Yes. You can get life insurance if you have diabetes. However, please be aware that obtaining life insurance while you have diabetes isn’t always straightforward. This is because diabetes is an individual experience, and different people will experience different levels of severity.
Type 1 and type 2 diabetics
Life insurance for type 1 diabetics is available, however more information from your GP may be needed. This is because Type 1 diabetes can have serious consequences from a young age. The impact on individuals is also significant, with regular and often permanent treatments being needed. Due to these facts, it is likely that higher premiums will be required.
In contrast to this, life insurance for type 2 diabetics is often more straightforward. Around 90% of all adults with diabetes in the UK fall into the type 2 category. Treatment can often include a diet or medication change to control the levels of glucose. Insulin injections may only be required if the condition worsens over time. If you have type 2 diabetes with no additional complications, you may be able to get a decision made straight away.
It is best to make an appointment with your GP if you experience symptoms of diabetes. Your doctor will be able to make a diagnosis and start a treatment plan. You can expect your GP to discuss your lifestyle and what steps you can take to help manage the condition.
Getting life insurance if you are diabetic
You will be asked some questions when you apply for cover and will be made aware straight away, or shortly afterwards, if you are able to obtain cover.
Shoud you disclose your diabetes?
Yes. When you apply for life insurance you will need to disclose if you have ever been diagnosed with diabetes, regardless of how long ago it was.
Here is a checklist of information you’ll need to include:
- When you were diagnosed, and the date of your last diabetic review.
- Whether your treatment includes insulin injections or an insulin pump.
- Details of any hospital admissions, excluding regular diabetic clinic appointments.
- Results of your latest HbA1c test, which indicates the blood glucose levels within red blood cells.
- Any additional complications such as kidney and eye problems, abnormal urine test results, and any symptoms such as numbness, tingling, or loss of sensation in fingers, toes or feet.
Please be aware that failure to answer any of these questions truthfully and accurately could invalidate any future claim and result in your policy being cancelled.
Why might I be declined for life insurance?
There are some circumstances in which life insurance for diabetics is not always possible. For example, help may not be accessible for all smokers or those with other cardiovascular risks. More information may also be needed from your GP if you are currently pregnant, of if the results of your HbA1c test suggest you may have high blood sugar levels.
Is diabetes covered by Critical Illness Cover?
If your policy included Critical Illness Cover, it is possible a cash sum may be paid if you suffer from a specified illness. While diabetes can lead to life-threatening complications in serious cases, it is not included in the list of critical illnesses. This is because it can usually be managed and treated.
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What are some reasons why someone may take our life cover?
There are many reasons to take out life cover but some of the main ones include:
- getting married
- buying a house
- starting a new job
- applying for a mortgage or loan
- the birth of a child
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My Life Insurance policy includes Terminal Illness cover. Is that the same as Critical Illness cover?
A terminal illness is generally classed as one which doctors believe is expected to lead to death within 12 months. Many Life Insurance policies include Terminal Illness cover as standard.
On the other hand, a Critical Illness is one of a number of specified conditions which are likely to be life-changing but not necessarily terminal. Heart attack, stroke and cancer are examples of illnesses which may be paid out with a Critical Illness policy even though the person may go on to make a good recovery.
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Will my policy actually pay out if I die? What proportion of claims are successful?
According to the Association of British Insurers, 97.3% of life insurance claims were accepted in 2021. The main reason behind the tiny proportion of claims rejected was ‘non-disclosure’. This is when a customer doesn’t tell their insurer something at the outset that might have affected the insurer’s decision to provide cover and the price of that cover.
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How do life insurance companies decide if I am a smoker?
Although this seems a clear-cut question, there are subtle differences between life insurance providers that can make a significant difference to whether you are accepted and how much you pay.
Generally speaking, anyone that has smoked a cigarette, cigar, pipe, or used any nicotine replacement devices including e-cigarettes, patches or even gums within the past 12 months will be considered a ‘smoker’ when it comes to insurance rates.
After this period, some insurers will charge ex-smokers the same standard rate as anyone else. However, others will still increase their premiums for ex-smokers for up to five years after they have quit.
There are other exceptions to these rules. For example, one insurance company allows individuals to smoke up to 12 cigars a year while still charging non-smoker rates. Finding and navigating your way through all these differences can be a challenge.
An Independent Financial Adviser can help you find the insurance that is best for you. They stay up to date with changes in how life insurance providers classify different medical conditions. If you would like to see if you are eligible for life insurance, feel free to contact us for more information.
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Is vaping treated the same as smoking for life insurance?
Different insurers have different criteria when it comes to how they classify vaping and e-cigarettes.
Some insurers classify vaping the same as they would smoking and increase the premiums. Meanwhile, others can offer standard rates for those who only vape non-nicotine products.
An Independent Financial Adviser can help you find the insurance that is best for you. They stay up to date with changes in how life insurance providers classify different medical conditions. If you would like to see if you are eligible for life insurance, feel free to contact us for a free initial meeting and quote.more information.