13 Best Life Insurance UK | Here’s A Guide To Best Policies To Secure Your Family

‘Best life insurance UK’ is a hotly contested topic and online query in the insurance industry. Here are the most popular policies available that you may consider based on factors that include price and coverage.

We’re here to help. In this blog post, we’ll give you a good overview of all the different things you need to know about choosing and buying life insurance in the UK. Hopefully, you will be able to find the perfect policy for your needs.

Check out the infographic that you will find below that shares important points on different life insurance covers available to you.

However, it is essential that you consult with an experienced and trusted life insurance adviser before you choose any policy best for you.

Table of Contents

List of Best Life Insurance UK policies available in the market

FAMILY LIFE INSURANCE

In case of your unfortunate demise, the cash sum your family gets can help them pay the mortgage, rent or help with everyday living expenses.
You have peace of mind knowing that your life insurance can help financially protect your loved ones.
You have the option to add Critical Illness Cover for an additional cost when you take out your family life insurance policy.

OVER 50s PLAN

Over 50s life insurance cover is for individuals in the age group 50-80.
You are guaranteed acceptance. Other types of policies may not accept you or charge a huge premium.
Pay-out is guaranteed if you don’t miss any payments.

CRITICAL ILLNESS

This cover supports you financially if you’re diagnosed with certain illnesses or disabilities included in the policy.
The lumpsum payment is a tax-free, one-off payment.
This payment can help pay for your treatment, mortgage, rent or changes to your home, such as wheelchair access, should you need it.

INCOME PROTECTION PLAN

It is a long-term insurance policy that makes sure you get a regular income until you retire or are able to return to work from an illness.
It pays out till you can start working again, till you retire, die or reach the end of the policy term.
It pays out 50% to 65% of your income.

TERM LIFE INSURANCE

These policies run for a fixed period of time or a pre-agreed period of time, known as the ‘term’ of your policy.
The time period of these policies is five, ten or 25 years.
Your family gets payment only as a result of your demise during the policy.

LEVEL TERM LIFE INSURANCE

This is a kind of term life insurance that pays a lump sum in case of your demise within the agreed term.
The level of cover stays the same throughout this policy.
This is the most simple and affordable option.

RENEWABLE TERM LIFE COVER

This policy is also called renewable term assurance and is a level term life insurance policy.
This policy has the option to renew once the term comes to its end.
When you choose this policy, choose the renewable term option at the start, as it can’t be added at a later date.
Insurers prefer to accept those in good health for this policy to protect themselves from any added risk.
When renewing your policy, the term and sum assured will usually be the same as your original policy.

DECREASING TERM LIFE INSURANCE

This is a kind of term life insurance where the level of life cover reduces each year during the term of the policy.
You can use this cover with repayment mortgages, where any outstanding loan you may have decreases over time.
You get reduced cash payment the longer the policy term continues.

INCREASING TERM LIFE INSURANCE

This is a kind of term life insurance where the level of cover rises over the term of the policy, to keep up with inflation.
The premium and cover both increase during the policy term. This policy can cover any increasing debt you may have.
The life cover amount increases each year by a fixed amount for the term of the policy.

WHOLE OF LIFE INSURANCE

Whole of life plans, also known as life assurance, give you cover for your entire life.
With this policy, in the event of your demise, the lump sum paid to your family can be used to meet your debts or can be left to someone.
This policy has an investment component where the premiums you pay are invested during the policy term.

PREPAID FUNERAL PLAN

With a prepaid funeral plan in the event of your demise, you can make sure that every detail is covered the way you would want.
You can pay as a lump sum or in monthly instalments.
You can ensure that your wishes are clearly conveyed to your loved ones and then executed.

FAMILY INCOME BENEFIT PLAN

This policy acts as an alternative to level term insurance and aims to replace lost income if the person insured dies.
This policy pays a monthly income that is tax-free.
It is suitable for young families who wish to protect against the loss of income provided by either parent or both parents.

JOINT LIFE COVER

Joint life insurance policy covers two people, but usually only pays out once.
Pay-out from a joint life insurance policy is usually in the form of a tax-free lump sum which your beneficiaries receive.
The money from this policy can be used to cover debts such as a mortgage, credit card or personal loan, as well as pay for household bills and everyday living costs.

How to choose best life insurance UK cover for you and your family?

If you are going online and typing ‘best life insurance UK’ then it means only two things: either you are planning to buy a life cover, or you are doing some research related to life insurance.

In both contexts, it is important to get a quick idea on how to go about the process of selecting the best life insurance policy. Here are a few tips:

Make an assessment of your life insurance goals.
Make a calculation of the optimal insurance cover that you will need.
Go ahead and determine the amount you have to pay as premium and then find the policy that offers the best deal.
You have to be wise and select the correct policy term.
You should choose a reputable life insurance provider.

Consult with your life partner and your trusted life insurance adviser and take out the life cover that serves you and your family best.