Life Insurance Comparisons in 2025

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Life Insurance Comparisons in 2025Life Insurance Comparisons in 2025

Life insurance as a product is one of the simplest insurances that you can arrange. It does what it says it does. If you set up the policy and die while it is active, it will pay out a sum of money to your loved ones.

Knowing how much life insurance to take out, how long it should last for and what you should be paying for it, are often the most confusing parts.

The type of life insurance that you need and the amount is very specific to each person. The choice is generally led by if you have a mortgage, a partner and/or children, a business and a number of other things.

It is possible to take out the wrong type of life insurance policy for your needs, which is why I do suggest to get advice. Life insurance can be incredibly straightforward but it’s also quite easy to miss a technicality that means the insurance isn’t going to do what you want it to do.

Let’s take a look at some life insurance insights together.

The Best Life Insurer

There is no one best life insurance provider. Your age, if you’re a smoker, your BMI, overall health, work and more, all play a part into which insurer is right for you. Most life insurance policies are very similar and I have written about some of the specific differences that insurers offer in recent blogs.

Here are some technical points for you to be aware of, if you are doing research yourself:

  • Minimum premiums – insurers can set minimum premiums for taking out life insurance for them. As a quick example I have just done a comparison for £100,000 life insurance over 20 years for a 33 year old. Some insurers quote for this, but there is one that has returned a quote close to £130,000. This is because that insurer sets a minimum premium of £6 per month and at that price they think the life insurance should be worth £130,000 for this person. 
  • Managed lives – some insurers offer options that are linked to your health over time. Most life insurance policies are based upon your health, the day that the policy starts, what happens in the future is not taken into account. However, you can find life insurance policies that are much cheaper than others (very tempting of course) that are based upon you updating your health with the insurer over time. This can be anywhere from daily to annual updates. These policies can work really well, but be mindful that the premiums can increase if you don’t engage with the health updates.
  • Terminal illness cover – this is not critical illness cover. There can be confusion over what terminal illness cover will payout for. This part of life insurance means that the policy has the potential to pay a claim to you, before you die, if you are diagnosed with a terminal illness. The absolute key word here is ‘potential’. The diagnosis usually has to be that you have less than 12 months left to live. It is quite difficult to claim on this as medical advances now often mean that it’s very hard for a medical professional to say that you definitely have less than 12 months left to live. Medical specialists will often say that they believe or think that you have X amount of time, but the insurers need to have a definite in order to pay the claim this way.

These are just a few of the extra things to be aware of when it comes to life insurance. There are also differences across insurers when it comes to types of life insurance available, waiver of premium and Trusts, that can influence where you should buy your policy. 

Types of Life Insurance

There are lots of different life insurances and here’s a little summary of each one. In this blog I am going to focus on personal life insurance:

  • Level Life Insurance – the value of the life insurance stays the same throughout the policy. Often used for family protection and interest only mortgages.
  • Decreasing Life Insurance – the value of the life insurance decreases over time, similarly to a mortgage. Typically the cheapest life insurance product and used for capital and repayment mortgages.
  • Increasing Life Insurance – the value of the life insurance increases each year to offset against the rate of inflation. This is usually used for family protection.
  • Whole of Life Insurance – this life insurance is arranged to cover things such as inheritance tax and funeral expenses. Usually one of the more expensive life insurance policies to arrange.
  • Family Income Benefit – despite the name this is life insurance and it pays an annual income to your loved ones, instead of a one-off lump sum of money. It is used for family protection.
  • Over 50s Life Insurance – primarily designed for funeral expenses and potentially small inheritance tax requirements. This can be one of the more expensive life insurance policies, as it is not medically underwritten.  

All of these types of life insurance have their time and place. It’s important to make sure that you arrange the right life insurance to match your needs, or it might not end up doing what you are wanting to achieve. As an example, you wouldn’t want to arrange a decreasing life insurance policy for an interest only mortgage, as the insurance will quickly not match the liability on your mortgage.

When you speak with our advisers we will make sure that the right type of life insurance is chosen, to match what you and your loved ones need.

How Much Does Life Insurance Cost?

Life insurance can cost as little as £5 per month up to £1,000s per month. Most people’s life insurance is at the cheaper side of this scale. 

Here are some quotations based upon a 33 year old mum who is a non smoker. She has a capital and repayment mortgage of £132,000 over 27 years and needs life insurance to support her partner and two young children.

  • Decreasing life insurance – £132,000 life insurance over 27 years costs £6.88 per month.
  • Increasing family income benefit – £27,500 per annum (to match annual nett income) for 21 years costs £11.90 per month.

Our award winning advisers arrange life insurance day in, day out. We know the ins and outs of the insurers, their product quirks, how their customer services act and most importantly how they behave when they receive a claim. We are here to help you, so that you can have peace of mind that your loved ones will be financially secure if you pass away.

Get in touch with us for a no obligation quotation today.

Related blogs

Best Life Insurance for Dads

Best Life Insurance for Mums

5 Ways to Get the Most Our of Your Life Insurance

 
 

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Life Insurance Comparisons in 2025

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Life Insurance Comparisons in 2025
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Life Insurance Comparisons in 2025
Life Insurance Comparisons in 2025