Life insurance helps provide for your family’s future if you pass away. It pays out a lump sum which can be used to:
- replace the loss of your income.
- repay the mortgage on your home.
- cover the cost of raising your children.
- pay for school or university fees.
- maintain your family’s lifestyle.
Why do I need life insurance?
Life insurance is one of the most popular insurances in the UK as it gives your family some financial security if you were to die unexpectedly.
Did you know that:
- the average outstanding mortgage is £100,000?
- the cost of raising a child to age 11 is £85,000?
- families spend an average of £489 a week on housing costs, gas and electricity, transport, food and leisure?
It’s not a nice thought, but would your family be able to make ends meet if they lost your income?
What types of life insurance are available?
A fixed term policy will pay out a fixed lump sum of money if you were to die during the term of the policy. The amount the policy will pay out stays the same during the lifetime of the policy. A fixed term policy may be used to support your dependents, pay for future spending such as university fees, or pay off outstanding debts.
A decreasing term policy will also pay out a lump sum of money if you die before a certain date. However the money paid out will reduce over the period of the policy. Many people use this policy to cover a repayment mortgage or until your children turn 18 years old.
Whole of life
A whole of life policy covers you for your entire lifetime. There is no fixed term for the policy so there will always be a pay-out from the insurer when you die. This also means you will continue to pay for it as long as the policy remains in place.
Critical illness cover
This cover can be added to your life insurance policy. It pays out a lump sum if you are diagnosed with a specific critical condition. The conditions covered vary from insurer to insurer but typically includes cancer, stroke, heart attack, liver failure and many other serious illnesses.
Single or joint cover
Couples often consider a joint life policy as it is usually cheaper than single cover. However, a joint policy will only pay out once which means that if one partner dies, the other is no longer insured. It is important to consider whether this option provides enough for your family, or if two separate policies would be better for your circumstances.
Compare life insurance with ActiveQuote
ActiveQuote is one of the leading comparison sites in the UK and we also partner Confused.com, Gocompare and uSwitch. Our online life insurance comparison allows you to compare quotes in under two minutes.
We compare life insurance quotes from the UK’s leading insurers. Our panel includes:
- Bright Grey
- Legal & General
- Scottish Provident