Life insurance guides for the UK

Key questions

How it works

Term, whole-of-life and decreasing cover explained.

What it costs

How insurers price cover and what changes a premium.

Trusts and tax

Writing a policy in trust and the inheritance tax position.

What does putting life insurance in trust mean?

Claims

How a claim is made and what can delay or reduce a payout.

Do life insurance policies actually pay out?

Comparisons

How life insurance sits beside other protection products.

Everything in life insurance

What is life insurance, and how does it work in the UK?
Life insurance is a contract: you pay a monthly premium, and the insurer pays an agreed lump sum — the sum assured — if you…
How much life insurance do I need?
Add up what the money would need to do: clear the mortgage and other debts, replace your income for the years dependants rely on it,…
How much does life insurance cost in the UK?
There is no single honest figure: premiums depend on your age, health, smoking status, the sum assured, the term length and whether premiums are guaranteed…
Term vs whole-of-life insurance: what’s the difference?
Term assurance covers a fixed number of years: it pays the sum assured if you die inside the term, and nothing if you outlive it.…
Level vs decreasing term life insurance: what’s the difference?
Both are term policies, but a level term sum assured stays fixed for the whole term, while a decreasing term sum falls over the years,…
Life insurance vs critical illness cover: what’s the difference?
Life insurance pays the sum assured when you die during cover. Critical illness cover pays a tax-free lump sum when you are diagnosed with a…
Life insurance vs mortgage protection insurance: what’s the difference?
“Mortgage protection” is usually decreasing term life insurance sized to your mortgage: the pay-out falls with the balance and clears the debt if you die.…
What does putting life insurance in trust mean?
Writing a life insurance policy in trust means the pay-out goes to trustees for your named beneficiaries instead of into your estate. Two practical effects…
Do life insurance policies actually pay out?
Yes — the large majority of UK life insurance claims are paid, with industry-collected figures in the high nineties per cent. Declines cluster around three…
Over-50s life insurance explained: guaranteed acceptance plans
Over-50s plans offer guaranteed acceptance within an age band: no medical questions, a fixed modest pay-out and a fixed monthly premium. The trade-offs are structural…