Protect your family
if the worst happens.

What is life insurance?

Life insurance is a financial product that pays a tax-free lump sum to your nominated beneficiaries if you die during the policy term. In return for a regular monthly premium, your insurer guarantees this payout — providing your family with the financial security they need to cover the mortgage, replace lost income, and maintain their standard of living.

How does life insurance work in the UK?

You choose a sum assured (the amount that will be paid out) and a policy length — typically aligned to your mortgage term or the age at which your children will become financially independent. If you die within the policy term, the insurer pays your chosen beneficiaries. If you outlive the term, the policy expires with no payout — this keeps premiums low compared to whole-of-life products.

Most UK life insurance policies are written in trust, meaning the payout falls outside your estate and is paid directly to your beneficiaries without going through probate. This can save both time and inheritance tax. An adviser will ensure your policy is structured correctly from the outset.

Types of life insurance available in the UK

Level term life insurance pays the same sum throughout the policy term — ideal for covering income replacement or interest-only mortgages. Decreasing term reduces over time to track a repayment mortgage balance, making it the most cost-effective option for homeowners. Whole of life has no expiry date and is commonly used for inheritance tax planning. A regulated adviser will recommend the right structure for your circumstances.

How much life insurance do you need?

A common starting point is enough to clear your mortgage and other debts, plus a multiple of your income — often around ten times your salary — to replace your earnings and cover your family's living costs for years to come. The right figure depends on your dependants, your outstanding mortgage, and how long they would need support. Our guide on how much life insurance you need walks through a simple method to calculate it, or try our free life insurance calculator for an instant estimate.

Writing your life insurance in trust

Placing your policy in trust is one of the most valuable — and most overlooked — steps you can take. It means the payout goes directly to your chosen beneficiaries rather than into your estate, which usually avoids probate delays and keeps the money outside your estate for inheritance tax. It costs nothing to set up with most insurers at the point of application, and an adviser will make sure it is done correctly.

Joint or single life policies?

Couples can take out a joint life policy or two single life policies. A joint policy is usually cheaper but typically pays out only once — on the first death — and then ends, leaving the survivor uninsured. Two single policies cost a little more but pay out twice, can be written in trust independently, and stay in force if the couple later separates. An adviser will explain which structure fits your circumstances.

Does life insurance always pay out?

Reputable insurers pay the large majority of life insurance claims. The main reasons a claim fails are non-disclosure — not answering the health and lifestyle questions accurately when you applied — or a specific policy exclusion. Most policies also apply a suicide exclusion in the first year. The single best way to protect a future claim is to answer every question fully and honestly, even where it raises the premium.

Life insurance with pre-existing conditions

Having a health condition does not necessarily mean you cannot get cover. Many conditions — from well-managed high blood pressure to a history of certain illnesses — are insurable, though they may affect your premium or lead to specific terms. Because insurers price the same condition very differently, comparing the whole market matters most when your health is not straightforward, which is exactly where an adviser earns their keep. You can also see what drives the cost of life insurance.