What's the best type of life insurance for me?

There’s no ‘best type of life insurance’ as what’s right for you depends on your personal circumstances. And the type of cover available varies between providers. So, if you’re thinking of taking out life insurance, it might be best to speak to a financial adviser or get some quotes from life insurance companies to get a sense of the range of covers available to you.

Frequently asked questions

How much life insurance you need will depend on your circumstances. Generally, the more cover your policy offers the higher your monthly payments will be. A life insurance calculator can help you work out how much you need.

If you want to use life insurance to provide your family with money to replace your lost income after you die, examine your outgoings to work out an accurate figure. If you want to use the payout to cover a debt such as your mortgage, this should be easy to calculate.

Mortgage life insurance is typically bought to cover a mortgage, so in the event of your death your loved ones can pay off your outstanding mortgage. You may have also heard it called 'decreasing term life insurance'.

The amount you are covered for decreases over the term of your policy, similar to the way a repayment mortgage decreases. Typically, mortgage life insurance is cheaper than a level term policy but you can get quotes for both and decide which best suits your needs. When you buy a house your mortgage lender may attempt to sell you life cover. You’re under no obligation to buy from them, so take the time to compare life insurance quotes and find a policy that best suits you.

Term life insurance can be bought for different durations. As long as you keep up your regular payments, a 20-year term policy will ensure that you are covered for 20 years, a 30-year term policy will cover you for 30 years and so on. This means that should you die within the time period you selected in your policy, your loved ones will receive a death benefit payout.

Because term life insurance is not something that can be redeemed for cash, it cannot decrease in value. Term life insurance has just one purpose; customer payments protect against the possibility that they will die during the policy's term. Should the worst happen, their chosen beneficiaries will receive a lump sum.

The decision of whether you should take out level term or decreasing life insurance should be based on your personal circumstances. Decreasing life insurance is often bought with a particular debt in mind, such as a mortgage. As you gradually pay off the amount you owe, the life insurance decreases in parallel. Level term life insurance functions a bit differently. Your beneficiaries will receive the same fixed lump sum no matter when you die, so long as it's within the duration of your policy.

How much life insurance you need will depend on your circumstances. Generally, the more cover your policy offers the higher your monthly payments will be. A life insurance calculator can help you work out how much you need.

If you want to use life insurance to provide your family with money to replace your lost income after you die, examine your outgoings to work out an accurate figure. If you want to use the payout to cover a debt such as your mortgage, this should be easy to calculate.

Mortgage life insurance is typically bought to cover a mortgage, so in the event of your death your loved ones can pay off your outstanding mortgage. You may have also heard it called 'decreasing term life insurance'.

The amount you are covered for decreases over the term of your policy, similar to the way a repayment mortgage decreases. Typically, mortgage life insurance is cheaper than a level term policy but you can get quotes for both and decide which best suits your needs. When you buy a house your mortgage lender may attempt to sell you life cover. You’re under no obligation to buy from them, so take the time to compare life insurance quotes and find a policy that best suits you.

Term life insurance can be bought for different durations. As long as you keep up your regular payments, a 20-year term policy will ensure that you are covered for 20 years, a 30-year term policy will cover you for 30 years and so on. This means that should you die within the time period you selected in your policy, your loved ones will receive a death benefit payout.

Because term life insurance is not something that can be redeemed for cash, it cannot decrease in value. Term life insurance has just one purpose; customer payments protect against the possibility that they will die during the policy's term. Should the worst happen, their chosen beneficiaries will receive a lump sum.

The decision of whether you should take out level term or decreasing life insurance should be based on your personal circumstances. Decreasing life insurance is often bought with a particular debt in mind, such as a mortgage. As you gradually pay off the amount you owe, the life insurance decreases in parallel. Level term life insurance functions a bit differently. Your beneficiaries will receive the same fixed lump sum no matter when you die, so long as it's within the duration of your policy.