Life Insurance is designed to pay out a tax free lump sum on death.
Many people use it to protect a mortgage or other debts, to ensure their loved ones are financially secure after their death, to meet an inheritance tax bill or to pay funeral expenses.
It’s impossible to give an exact answer to the question of how much Life Insurance costs because it will depend on individual circumstances.
However, this guide aims to give you a rough idea of the premiums, which are largely based on:
There are two main types of Life Insurance
Term insurance lasts for a set term, say 25 years, and then ends. It’s often used to cover an outstanding mortgage or provide family protection until an age where children are no longer dependent.
One type of term insurance is known as Family Income Benefit. This also lasts for a set term, but rather than pay out out a lump sum on death it pays out an income instead.
Whole of Life Insurance, as the name suggests, will cover you for your whole life until you pass away, whenever that might be.
As the risk is assured to happen with Whole of Life Insurance, premiums are far more expensive than for term insurance. For this reason, the sum assured is usually much lower.
Typical uses for Whole of Life Cover include funeral expenses and inheritance tax bills.
When getting Life Insurance quotes online, it’s vital to remember that they will always assume you’re in good health. If you have any underlying health issues, it’s essential you provide these details so the risk can be properly priced, ensuring you’re covered should the worst happen.
Life Insurance policies can come with a wide variety of additional benefits, things such as Terminal Illness Cover (a very common feature), waiver of premium and bereavement counselling.
Such policy options may be offered for an additional premium or may be built into the standard price of the policy.
As has been stressed, there can be no standard example of the cost of Life Insurance because individual clients and insurers all differ, but below are some test quotes for a 30-year-old, a 40-year-old and a 50-year-old.
The monthly premiums were retrieved from the Drewberry’s online comparison engine on February 20th, 2019 and were based on:
Level Life Insurance
Decreasing Life Insurance
30 Years Old
40 Years Old
50 Years Old
To get a better idea of policy prices and cover levels for your particular situation, try our quick and easy online Life Insurance comparison quote service.
We are here to help you make an informed decision when it comes to your financial protection whilst finding you the most competitive terms on offer.
We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to let us help.
To get a much better idea of the right policy for your needs and the cost, it is a good idea to speak to an expert adviser.
We can factor in any medical conditions you may have suffered to give you a more accurate indication of how much you would need to pay for life insurance.
Director at Drewberry Insurance
I had the pleasure of dealing with Jake Mills in organising my insurance. Jake was fantastic to deal with — his patience and understanding really helped.