Compare life insurance quotes
Find a policy that can provide some financial security for your loved ones if you pass away
*Dependent on age, cover term and cover amount selected. Example of a 20-year-old non-smoker in good health, taking £100,000 level cover over 25 years. Based on data from online sales (January 2026).
What is life insurance and how does it work?
Life insurance is a policy that can pay out to your family or beneficiaries if you die during your cover period (also known as the policy term).
This can offer you peace of mind that your loved ones are financially supported when you're no longer around.
You can choose from a number of different life insurance policies that suit your requirements, budget and personal circumstances.
As the policyholder, you can select the beneficiaries of your life insurance payout. This ensures that your loved ones receive the stated amount included in your policy from your life insurance provider when you die.
Life insurance can offer cover for a set period of time. This is different from life assurance, which can offer whole-of-life cover, typically at a higher premium.
Do I need life insurance?
Having a life insurance policy is not a legal requirement, but it can be an important consideration if you want to ensure financial support for your loved ones.
Major life events are a good time to assess whether you should consider life insurance. Common reasons that prompt a discussion over life insurance include:
Having children: A life insurance policy can help ensure your young family is financially protected should the worst happen.
Buying a new home: It's one of life's biggest financial commitments, and you may share the cost with family or friends. A life insurance payout might be able to cover your future payments or pay off the remaining balance entirely.
Getting married: If you and your partner share various joint financial responsibilities, a life insurance policy can protect your other half.
It's a common misconception, but life insurance is just as important for a main household earner as it is for a stay-at-home parent, for example. Both roles hold a great degree of financial value, so a life insurance policy can help cover the loss of either contribution.
Even if you're single, life insurance can still be worth considering. You may want to leave behind a financial gift in the form of inheritance or pay for other costs, such as your funeral.
What are the different types of life insurance?
There are several different types of life insurance policies, each having their own key features. This is why it's important to understand the benefits of each and which may suit your requirements best.
Term life insurance
Term life insurance policies offer cover over a set period of time. There are two main types: level-term life insurance and decreasing-term life insurance.
Both policies are similar in that your monthly premiums remain the same for the duration of your cover period. However, the cover amount in level-term life insurance stays the same throughout the policy. Whereas, in decreasing-term life insurance, the cover amount reduces over the course of a policy.
Whole-of-life insurance
It's often called life assurance, as, unlike term life insurance, whole-of-life insurance lasts a lifetime. This means your beneficiaries will receive the stated amount in your life insurance policy when you die if the claim is valid.
Depending on your policy preferences, you can choose between fixed or variable premiums and potential payouts. The advantages of whole-of-life insurance inlude:
Greater peace of mind as you'll have cover in place for life as opposed to a set term
More flexibility in terms of your monthly premium and eventual payout
The payout your beneficiaries receive is usually a tax-free lump sum
With no expiry and greater flexibility, whole-of-life insurance policies are generally more expensive compared to term life insurance.
In addition, you'll also need to answer a medical questionnaire. If you have a pre-existing condition, your premiums may increase if you want to include dedicated cover. Some insurers may exclude cover for a pre-existing condition altogether.
Joint life insurance
It's a popular option for couples or two individuals who support each other financially and are looking for a combined life insurance policy.
In a joint life insurance policy, you can select whether a payout is issued after one policyholder dies or after both die. Regardless of your choice, the policy will only pay out once.
Because a joint life insurance policy only pays out once, it can be a more affordable option compared to other types of life insurance.
Can be easier to manage and requires just one monthly payment to cover both policyholders.
May suit couples or individuals who want to cover shared financial commitments.
While joint life insurance can be useful for couples, if your relationship ends, you won't be able to separate the policy into individual cover.
How to choose the best life insurance
It’s important that you find the right cover for your needs, so here are three things to consider during the decision-making process:
Think about the type of cover
Work out the length of cover
Compare quotes
“It’s tempting to simply pick the cheapest monthly premium, but the 'best' life insurance is the one that aligns with your specific debts. For example, a decreasing-term policy is often the most cost-effective way to cover a repayment mortgage, whereas level-term cover is better if you want to leave a guaranteed, fixed lump sum for your children’s future. Always match the policy type to the financial 'gap' you’re trying to fill.”
How is the cost of life insurance calculated?
Life insurance can cost as little as £3.50 per month*, but what you pay is calculated based on a range of personal circumstances.
Because of this, life insurance premiums can vary quite a bit, with the following factors determining exactly what you pay:
The type of policy you choose: Some life insurance policies cost more than others, especially if they have additional benefits. The term of your policy and chosen insured sum also impact the cost of your premium.
Your health: Policies, such as whole-of-life insurance, may require you to complete a medical questionnaire during your application. Any pre-existing medical conditions you may have, along with your family history, can be used to determine your premium.
Your age: Generally, the older you are, the more expensive a life insurance policy is likely to be. This is because there is a greater risk of developing a health condition or dying as you get older.
Your lifestyle: Your smoking status, weekly consumption of alcohol and occupation all impact what you pay for life insurance. Essentially, the greater the risk of developing a health issue, the more you're likely to pay.
To see what you might pay for life insurance, you can find out by getting a quote in minutes.
How much life insurance cover do I need?
Choosing your cover amount can seem like guesswork. But assessing what you need from a life insurance policy can be easier to calculate by considering a few factors, such as:
If you have any outstanding debts
Future costs you want to pay for
What financial support you want to offer your family or dependants
As a rule of thumb, the greater your cover amount, the more you're likely to pay for life insurance. It's important to accurately estimate what you need; choosing a higher cover amount than you actually need may mean that you end up paying more than necessary. However, underestimating your insured sum can leave you short and may not cover your outstanding debts.
If you're looking for a starting point in calculating your cover amount, you can try a life insurance calculator to work out what you need. This can help you work out what costs you'd like to cover and the amount of money you wish to leave behind, offering you a suggested insured sum.
Can I get life insurance with a pre-existing medical condition?
Yes, you can still buy life insurance if you have a pre-existing health condition. Insurers typically define this as a disease, injury or illness that you have previously experienced or are currently suffering from. Each insurer is likely to have their own list of what they define as a pre-existing condition; common examples include:
Diabetes
High blood pressure
Asthma
Heart conditions
Cancer
A pre-existing condition is different from a health issue you develop while you already have a life insurance policy in place. If you develop one of the listed conditions above, you may be able to claim for treatment if it isn't excluded from your cover. However, you may not be able to claim for a pre-existing condition if you suffered from it prior to or at the moment you bought life insurance.
When you disclose a health condition during an application, there are 3 potential outcomes:
Your health condition is covered by a life insurance policy
You're offered a life insurance policy, but it excludes cover for your condition
A life insurance provider declines to offer you a policy
This is why it's important to compare life insurance quotes from insurers to establish whether your condition is covered or not. Having a pre-existing medical condition may increase what you pay for life insurance and complicate the process of applying. However, there are many insurers that specialise in offering life insurance for anyone with specific conditions, so it's always worth searching for quotes before buying.
Above all, you must be truthful and honest when completing a life insurance application, particularly in relation to your health. Not disclosing existing or previous health issues can invalidate your life insurance policy, and any potential claim you make may be rejected.
About the author
Customer Reviews
Everything you need to gain credit for…
Very fast and efficient. From start to finish it was easy to follow the application.
Great website
We’ve been featured in
References
money.co.uk is a trading name of Dot Zinc Limited, registered in England (4093922) and authorised and regulated by the Financial Conduct Authority (415689). Our registered address is: The Cooperage, 5 Copper Row, London, England, SE1 2LH. We are classed as a credit broker for consumer credit, not a lender. The money.co.uk Life Insurance service is arranged by Reassured Ltd, who is authorised and regulated by the Financial Conduct Authority and entered on the Financial Services Register under reference 616144. Registered Office: 1st Floor, Belvedere House, Bading View, Basingstoke, Hampshire, RG21 4HG. 06838409 registered in England and Wales.
Our service is free and compares a wide range of trusted household names. money.co.uk is an intermediary and receives commission from Reassured Ltd which is based on a percentage of the total annual premium if you decide to buy through our website. We pride ourselves on impartiality on independence - therefore we don't promote any one insurance provider over another.