Published by Joe Davine on
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Getting life insurance as a UK citizen

Make sure your loved ones are always protected.

How would your family support themselves if you were no longer here? Life insurance provides for your family if you should pass away prematurely. That kind of protection and peace of mind is priceless.

What is UK Life Insurance?

Life insurance is a policy that offers up a lump sum payment to your family in the event of your death. While you are living, you make monthly payments toward your policy. There are many different types of life insurance, including term life insurance, whole life insurance, joint life insurance, and more. It’s important to do your research to find the plan that’s best for your needs.

Is UK Life Insurance right for me?

If you have any dependents -- a child, a spouse, a dependent family member, an older parent -- it’s very important that you consider life insurance as a means of protecting them when you’re gone. Without a life insurance policy in place, they could suffer devastating financial losses on top of the loss of a family member.

Term Life Insurance Compared with Whole Life Insurance (UK)

The first decision you’ll need to make regarding life insurance in the United Kingdom is whether to purchase term life insurance or whole life insurance. In order to make a correct decision, you need to compare different types of life insurance.

Term life insurance is cheaper than whole life insurance. You purchase a plan with a pre-specified term, for example, 20 years, and the plan is only valid for that period of time. If you pass away within the term, your plan will pay out in full. However, once your term is up, your policy is terminated and you’re no longer covered. This means that if you have a 20-year policy, and you pass away even one day after your 20 years has ended, your family will not receive any payout.

Whole life insurance is more expensive than term life insurance, but it is considered an investment. Whole life insurance is with you for life. Whether you die in one year or 40 years, the policy will offer a payout to your family. In fact, that payout typically increases over time, which is why it’s considered an investment.

Differences Between Single Life Insurance and Joint Life Insurance in the UK

If you are married or have a long-term partner, you may also want to consider whether you’d prefer to take out a single life insurance policy or a joint life insurance policy.

Single life insurance will cover you and only you. If you are the main breadwinner in the family, you may not find it necessary for anyone else in your household to have life insurance coverage. It’s important to consider the value that your spouse may add to your household in the form of childcare or maintenance of the house such as mortgage contribution. If he or she were no longer around, could you handle the additional costs of those things?

Joint life insurance is a joint policy that will cover you and a spouse or partner. It is often not that much more expensive than a single life insurance policy, making it a great deal for partners who earn equally. However, most joint life insurance policies only offer one payout, typically when the first person dies. After that, the policy is terminated. If you and your partner want the security of two payouts, it’s a good idea to take out two separate life insurance policies.

Compare Different UK Life Insurance Providers

Before selecting a life insurance policy, it’s crucial to compare different providers of life insurance to find one that best fits your needs. Some life insurance UK providers focus on family life insurance, while others focus on over 50 life insurance. Some offer children life insurance and some don’t. There are even life insurance providers who offer life insurance for diabetics.

Finding the best life insurance plan for your family is all about your specific needs and coverage desires. Our independent life insurance experts have compiled research and data from a number of different providers of UK life insurance to give you a one-stop-shop for unbiased information. On top of that, our Life Insurance Calculator allows you to receive an on a life insurance policy that fits your needs.

Pros of Life Insurance in the United Kingdom

  • It replaces your income. It’s important to know that your family will be able to support themselves financially if you’re not around. Life insurance in the UK offers a payment to your loved ones that can replace the loss of your income.
  • It can help your family cover funeral costs. The cost of a funeral service is steadily rising, and many families cannot afford to pay funeral expenses out of pocket. Life insurance makes sure that your family does not have to worry about scrambling for last-minute cash while they are grieving.
  • It can pay off any remaining debts you have. If you have a mortgage, credit card debt, a loan, or business debt, that burden will be placed on your family when you die. Having a life insurance UK policy provides your family with money to repay your debts.
  • It can provide your family with a legacy. While no amount of money can replace a loved one, offering a financial gift upon your passing can help ease the strain of loss.
  • Cons of Life Insurance in the United Kingdom

    • The cost can be high if you are old or unhealthy. If you are looking for life insurance later in life, or if you suffer from a moderate to severe medical condition, the costs of taking out a life insurance policy can be overwhelming. However, there are some providers who deal with folks who have health issues, and many providers of life insurance in the UK offer life insurance for people age 50 to 80.
    • You may not have a beneficiary. In order to declare a beneficiary to your life insurance policy, you should be able to show that they have an insurable interest. This typically includes dependents but can include other people, such as partners, parents, or other relatives. If you have no one who would suffer a financial loss in the event of your death, you might find life insurance to be unnecessary. Just keep in mind that if you plan to start a family one day, taking out a policy now, while you are younger, is cheaper than ever.

    How much does Life Insurance cost in the United Kingdom?

    This will vary depending on your coverage needs and the provider of your life insurance in the UK. However, life insurance is far more affordable than most people realize. It’s possible to find a policy for £5 or sometimes even less.

    Who is eligible for Life Insurance in the UK?

    As long as you are 18 years of age or older and a citizen or legal resident of the United Kingdom, you will qualify.

    Where can I get a quote for Life Insurance in the UK?

    We can give you a free quote for UK life insurance. Simply fill out our Life Insurance Calculator, and we’ll provide you with a personalized, instant quote.