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So, if you want clear, concise and accurate information about family life insurance options, get in touch today.
Life insurance is an important decision that many families overlook, leaving themselves vulnerable to financial hardship in the event of an unexpected death or critical illness.
Surprisingly, only one in three families in the UK has adequate coverage, leaving many people feeling overwhelmed by the process or suspected cost of life insurance.
But with nowsure, you don’t have to feel overwhelmed or confused. Here’s what you can get from us:
At nowsure , we recognise the importance of financial protection for you and your family. But we also know how complex the process can be. Our mission is to provide relevant information on the available options, letting you take the lead on finding the policy you need most.
Reach out now to start securing your family’s future.
When the worst happens, family life insurance covers everything you care about, from your family’s well-being to their financial security. The term ‘family life insurance’ refers to a variety of different insurance policies, so it’s important to understand the options and decide which is right for you and your family.
Life insurance involves a contract between the policyholder and an insurer, where premiums are paid in exchange for an agreed lump sum payment to the beneficiaries in the event of the policyholder’s death during the term.
Family life insurance policies come in different forms, including term life insurance and whole life insurance:
Work out how much life insurance cover you may need using our easy to use calculator tool.
We are only providing an estimate.
You will need to decide how much cover is sufficient to meet your needs.
Life insurance is designed to provide a cash lump sum should you die during the policy term.
When the unthinkable happens, family life insurance ensures that you have a financial safety net set up for your loved ones. If the unexpected occurs, your policy’s one-time benefit could give your family the financial security they need in their time of grief. Typically, the lump sum can be used to cover debts, mortgage or rental payments, support children’s education, and cover daily expenses.
Ultimately, family life insurance can give you a feeling of relief, knowing that your loved ones will be taken care of financially, even after you’re gone.
By working with an established comparison company like nowsure, you can ensure that you have the right coverage in place to meet your family’s unique needs and help secure their future.
There are different types of policies available, but one popular option is term life insurance. This type of policy provides coverage for a set period of time, such as 10, 20, or 30 years. If something were to happen to you during that time, your beneficiaries would receive a payout.
Getting life insurance may cost you just £5 a month – and it’ll give you and your loved ones the financial reassurance you may be worrying about.
Factors such as age, health and lifestyle, occupation, cover amount and policy duration will affect the premium you need to pay.
| Level term life insurance | A level-term insurance policy offers coverage for a specific duration, ranging up to 50 years, and pays out a predetermined lump sum of up to £1,000,000 to your beneficiaries upon your death. It’s an ideal choice for individuals who have dependents, such as children, and wish to provide financial security for their future education or childcare expenses. While the cost of level term insurance is typically higher than decreasing term insurance, it is generally more affordable than whole-life insurance. |
| Decreasing term life insurance | Decreasing term life insurance is a type of insurance where the potential payout decreases over time, making it more affordable than level term cover. The decrease in payout can be aligned with the decreasing financial dependence of children or the reducing balance of a mortgage. |
| Increasing term life insurance
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Term cover increases to account for rising costs of living and inflation throughout the duration of your policy. The premium amount can increase with this. Increasing term insurance allows for predictions of inflation to be automated, but this comes at an additional cost. These increases are applied automatically without needing to re-assess your health and circumstances. |
Here is a step-by-step breakdown of how term life insurance works:
Step 1: Determine the coverage amount. This is where you figure out how much coverage you need to take care of your family’s financial obligations and future expenses.
Step 2: Choose the policy term. This is where you decide how long you want the policy to last. Typically, term life insurance policies last anywhere from 10 to 30 years, but there may be other options available that better fit your needs.
Step 3: Select the designated beneficiaries. This is the person who will receive the payout from the policy if you pass away during the policy term. Usually, people choose their spouse, partner, or children, but you can choose anyone you want.
Step 4: Choose between fixed or adjustable sum insured. This is the amount of money that will be paid out to your beneficiary if something happens to you. Depending on the policy, this amount may stay the same or change over time (which is why it is important to read the terms of your policy!).
Step 5: Pay the insurance premium. This is where you make monthly or annual payments to keep the policy active. The amount you pay will depend on a few factors, like the coverage amount, policy term, and your age and health.
Step 6: Benefit payout. If something were to happen to you during the policy term, your designated beneficiary would receive the payout from the policy. This money can be used to cover expenses like mortgage payments, university tuition, and living expenses.
Step 7: Expiry. When the policy term ends, the cover ends too. At this point, you can choose to renew the policy or convert it to a permanent life insurance policy if you need more coverage. But if you pass away after the policy has expired and you haven’t renewed it, your beneficiaries won’t receive a payout.
Feeling overwhelmed and don’t know where to start? Don’t panic, we’re here to help make every step a breeze. Uncover a policy quickly and easily – no unnecessary questions or jargon!
We get it, trying to put a value on your life and future is difficult. But don’t worry, it can be easier to determine an average figure by calculating your household costs, childcare costs and any other large payments you suspect to be making in the coming years.
Mortgage and Debt
When determining life insurance needs, it is necessary to consider any mortgage or outstanding debts. The total value and monthly payments should be considered. Subsequently, depending on the terms of such arrangements, you may decide to include coverage that could ensure repayment of all outstanding debts in the event of death.
Monthly Budget
When deciding the required amount of life insurance, take your family’s monthly budget into account. Determine the monthly budget needed to sustain your family’s current lifestyle, covering expenses like rent or mortgage payments, utilities, food, transportation, and other essentials. Remember to factor in discretionary expenses, including entertainment, travel and hobbies.
Upbringing of Children
It is important to account for future expenses related to children, such as childcare, education and extracurricular activities. If the primary caregiver were to suddenly pass away, it is essential to ensure sufficient coverage exists that can cover the cost of childcare or household help.
Income Replacement
One of the most important factors to consider when determining your life insurance needs is income replacement. Consider how much income your family would need to replace in the event of your death. A rule of thumb is to aim for a coverage amount of 10-12 times your annual salary. This can ensure that your family has enough money to cover their expenses and maintain their standard of living if you’re no longer around.
When considering your life insurance needs, it is important to take into account any financial obligations and income replacement requirements, in addition to any future expenses. Additionally, you should subtract any current life insurance coverage to determine if a policy adjustment or update is necessary. As your needs may change over time, it is important to periodically assess and adjust your policy accordingly.
Family costs in the UK: information to help you decideBased on information from 2023 data.
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Simply put, there is no ‘best’ or ‘right’ time to start thinking about life insurance. However, individuals must be at least 18 years old before they apply for it. It’s also worth bearing in mind that there are various factors that affect your premium rate, age being one of them.
Let’s explore some of the most common scenarios that often trigger Britons to get cover:
When your family grows: Considering life insurance is common among new and expectant parents, due to the responsibility for a dependant which comes with parenthood.
When you apply for a mortgage: Mortgage providers typically request that borrowers take out life insurance to secure the mortgage payments in the case of death. If you have dependents living with you, it is essential to consider their ability to make mortgage repayments, otherwise, the lender might try to recover the debt by selling the home.
When you get into a long-term relationship: When you enter into a long-term relationship, there are often significant changes that occur, such as moving in with a partner, getting married, or committing to joint financial commitments. These changes can bring about important discussions regarding financial planning and the protection of your loved ones in the event of an unexpected tragedy.
When you’re young and healthy: When you’re young and healthy, life insurance premiums are typically lower. Purchasing a policy when you’re younger often has the advantage of affordable premiums. However, there are insurance products suited for older people, such as over 50s life insurance and some providers can cover you up to the age of around 90.
Don’t go it alone on the journey of life insurance – our team of experts is here to support you every step of the way. We’ll make sure you understand all the options available, so you select the perfect policy that fits within your budget.
Each person and household has a special situation – we get it! That’s why we invest time getting to know you and your individual needs, tailoring solutions around that. Whether you’re looking for a term life policy or accident protection coverage we can inform you of all you need to know to get the right coverage for your situation.
Your loved ones can have financial security – even if you’re not there to provide it. Let us give them the assurance they need. Start your life insurance journey now and take the first step towards securing your family’s financial future.
Contact us today to learn more about our life insurance policies and how we can help you protect the things that matter most.
Take comfort in the knowledge that your loved ones will be financially looked after when you’re no longer around to do it. It takes only two minutes to get a quote but can hopefully give a lifetime of reassurance.
Want peace of mind knowing your loved ones' future will be financially protected should the worst happen? Even if the financial future of your family looks stable without you, life insurance can help with funeral expenses, provide an inheritance, or cover extra childcare costs.
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This type of policy offers a fixed sum assured, where the cover and premiums stay the same for the duration of your cover period, unless you make a change to your policy. This form of cover is also known as 'level term' life insurance.
MoreNot sure where to start? We've put together a range of guides to help you get to grips with life insurance.
Want to know more? Visit our guides section for everything you need to know about life insurance.
Your most common life insurance questions answered.
Put simply, life insurance works by paying a premium each month to your provider, which you’ll have to keep up for the duration of your policy. On your death, the people named in your policy (called your beneficiaries) will receive a tax-free lump sum or regular payments. How much this is depends on the level of cover you have chosen. And, of course, it’s also on the proviso that you die within the specified term of your policy.
It’s always advisable to compare life insurance quotes before taking out a policy. You and your family’s individual circumstances will determine how much cover you need and what you’ll have to pay in premiums. Other factors that may impact your life cover quote include your age and medical history.
Generally speaking, your life cover should start as soon as your application has been approved. This means that your loved ones will receive a pay-out whether you die in the first, fifth, 15th or 25th year of your insurance, as long as the policy has not run its term.
In some instances, however, the terms and conditions of the policy state that a waiting period is in place, so always read the details carefully before signing. This can happen in the case of a death by suicide, for example, where an exclusion period of 12-24 months from the start of the policy may apply.
Compare multiple life insurance quotes to get a good idea of how much cover will cost you. It can start from as little as £5/month – possibly less than what you’re paying for your monthly Netflix subscription – but will vary depending on how much you want the policy to pay out, how long you want it to last, and other factors such as your age, medical history and lifestyle, including whether you smoke.
Don’t be tempted to lie about your circumstances to get a cheaper policy – any inaccuracies may invalidate a future claim. And remember that the best (by which we mean the cheapest) time to take out a policy is when you’re young and healthy, so don’t put it off either.
Life insurance is often an affordable way to make sure your family stays afloat financially when you pass away. But its benefit is only truly maximised if it covers everything you want it to. Comparing life insurance on price level alone could mean your loved ones lose out for the sake of a just few pence more in your pocket each month.
A smarter way to compare life cover is to be clear in your mind exactly what type of policy you’re after, how long you need it for and how much you want it to pay out. Once you’ve found several that meet your criteria, however, choosing the cheapest life insurance from the selection can make perfect sense. Always make sure you can afford the monthly premiums before you commit.
The most common policies are known as term life insurance. These cover you for a fixed amount of time and usually fall into two categories – decreasing term life insurance and level term life insurance.
Let’s start with decreasing term, which lets you choose how long you want the policy to run for. You’ll pay a monthly premium until that date, after which the policy ends and you’ll no longer be covered. The amount paid out decreases over time (hence the name), but you usually use this type of insurance to cover a mortgage, which also goes down with time too.
A level term policy, meanwhile, promises a lump sum for loved ones that always stays the same, whether you die in the first year of the policy, or the penultimate one. As a result it’s usually a bit more expensive than decreasing term insurance.
While the policies described above will cover you for a fixed amount of time, whole of life insurance has no ‘expiry date’. Your partner or children will receive a pay out whenever you die, and consequently this cover is a costlier option. It is often used to ensure a funeral can be paid for, or as part of inheritance tax planning.
Life insurance can cover your remaining mortgage, the rent, monthly bills, or loans and credit cards so there’s no immediate financial pressure on your loved ones if you die.
But it can also cover things like school and higher education, or childcare if your death necessitates this additional cost.
Sometimes the lump sum can be used as a gift, or simply to cover the cost of your funeral so it doesn’t come out of the family savings.
Term life insurance only offers cover for a limited period of time. After your policy expires, you can’t claim any pay-out and the premiums you’ve put in won’t be returned.
An exception is return-of-premium life insurance, which will essentially refund what you’ve paid – but at the cost of much higher premiums while the policy lasts. What’s more, you usually have to hold the policy for the entire term and make all payments to get your money back.
Most people simply accept that life cover, like other types of insurance, is about weighing up the risks of not having it against the price you pay if you don’t need to claim. The peace of mind of knowing your family will be looked after if the worst happens often makes the decision easier.
When you near the end of a life insurance policy, it’s worth considering whether you still need cover. If your mortgage is paid off and your children have flown the nest, then you may not require it anymore. If you do want to continue, you could buy another policy or apply to extend your current one. But bear in mind your premiums are likely to be higher than they were for your original policy now that you’re older, and you may not meet all eligibility criteria.
Generally speaking, you’ll pay less for life cover the younger and healthier you are so, if you think you need it, it’s sensible to compare life insurance quotes as early as possible.
There are several events in life that inevitably make the question of whether to get life insurance more urgent. Buying a new home and taking out a mortgage is an obvious one. If you die before the loan is repaid, the responsibility for it will fall on your loved ones instead, so you need to think about whether they’ll be able to shoulder this without your income.
For other people, having a baby is their trigger to consider life cover. According to Child Poverty Action Group raising a child to the age of 18 in the UK in 2021 stood at £160,692 for a couple and £193,801 for a lone parent. Having a life policy in place, at least until children reach financial independence or have finished school, can give you peace of mind they’ll be provided for when you’re gone.
Even if you don’t have children, getting married or making any other long-term commitment to a partner can also be a reason to research life insurance. Whether you opt for a single or joint life insurance policy, your partner will be financially cared for on your death.
Life insurance is also relevant if you’re planning for a funeral and/or inheritance. According to the SunLife Cost of Dying Report 2022, the cost of a basic funeral in the UK was £4,056 in 2021. The lump sum your loved ones receive can be used to cover this, rather than it coming out of their own pockets. Alternatively the pay-out can make a difference for anyone looking to leave money to their children without inheritance costs. You can take out a whole-of-life insurance policy, which lasts until your death, to cover the inheritance tax bill you expect your heirs to have to pay.
Life insurance provide peace of mind that your partner or children with be financially looked after when you’re not around to do it yourself. If your dependants are still in school (or younger), or if your partner relies on your income it’s especially worth looking into. Ditto if your family is living in rented accommodation or in a house with a mortgage that you pay. If there’s any doubt they could keep up repayments without your salary, life insurance could be a solution.
Even if the long-term financial future of your family looks relatively stable without you, life insurance can be helpful to cover funeral expenses, provide an inheritance, or cover extra childcare costs if you’re not around.
Not everyone needs life cover. Some already have a policy through their employer, others may feel their partner earns enough for the family to live on. If you’re older and your children have flown the nest, it might also be unnecessary. The key question to ask yourself is whether your death would have a financial impact on the people you care about.
