What is life insurance?
Life insurance pays a lump sum (or sometimes a regular income) to the people you choose if you die during the term of the policy. The idea is simple: if your income disappeared tomorrow, the mortgage, the bills and the plans shouldn't disappear with it. You pay a monthly premium based on your age, health, smoking status and the amount of cover you choose.
The main types of cover
- Level term — the payout stays the same throughout the policy. Good for covering family living costs or an interest-only mortgage.
- Decreasing term — the payout reduces roughly in line with a repayment mortgage, so it's usually the cheaper way to protect the debt itself.
- Family income benefit — instead of one lump sum, your family receives a monthly income for the rest of the term. Often easier to picture: it replaces your salary.
- Whole of life — pays out whenever you die, often used for inheritance tax planning or leaving a guaranteed legacy.
How much cover do you actually need?
There's no magic formula, but most people start with two questions: what would need to be paid off (usually the mortgage), and how much income would your family need to keep life normal? Add those up, subtract what you'd already have in savings or existing policies, and you're close. We'll walk through it with you — properly, not with a one-size-fits-all calculator.
What affects the price
Premiums are mainly driven by your age, whether you smoke, your health, the cover amount and the length of the term. Two things are worth knowing: the younger and healthier you are when you take it out, the cheaper it stays for the whole term — and a medical condition doesn't automatically mean you can't get cover. Different insurers treat the same condition very differently, and we know where to look.
Putting the policy in trust
One small step most people miss: writing your policy 'in trust' means the payout usually goes straight to the right people without waiting for probate, and it typically falls outside your estate for inheritance tax. It's free to do, takes minutes, and we'll help you set it up as part of the advice.
Common questions
What is life insurance?
It's a policy that pays out a sum of money if you die during the term of the policy. That money can go towards clearing a mortgage, covering household bills, or giving your family breathing space while they adjust. You pay a monthly premium, and if you're still around when the policy ends, it simply finishes — there's nothing to claim.
Do I need life insurance to get a mortgage?
No — lenders don't require it. But if anyone depends on your income to pay the mortgage, it's worth serious thought. Life insurance is about protecting the plan, not satisfying the lender.
How much life insurance do I need?
A common starting point is your outstanding mortgage plus enough to cover a few years of family expenses. But the right number depends on your circumstances — who relies on you, what savings you have, and what you want the money to do. That's exactly what a conversation with an adviser is for.