If you’re considering buying life insurance, one of the first steps is to decide how much life insurance you need. Please remember there is no correct answer for everyone, and the final amount will depend on your own personal circumstances and your budget.

We've put together this helpful guide so you can get started on your own, but if you find yourself needing a hand, please feel free to call us and speak to one of our friendly advisers on 01392 436 193.

Work out what you would like to cover

Instead of focussing on the numbers right away, you may be better off deciding what you would like cover for. Working out why you need cover will give you a good starting place to deciding what cover you need and how much. 

This might include things like:

Your mortgage

If you have a mortgage in place, your family or loved ones may need to pay back the remaining balance. To assist with this, you could look into purchasing mortgage cover, which is a cost effective option specifically for mortgages. If you have a mortgage with another person, like your partner for example, you may want to consider joint life insurance

Your family

If you have family and/or loved ones, then making sure they're taken care of is probably top of your list. You can do this by taking out family life insurance. Family life insurance is available as a lump sum payout, or a monthly/yearly allowance. When deciding an amount to be insured for, it's important to total up expenses like bills, rent, childcare, education costs etc. Once you have this figure, you'll have a rough idea on how much cover you need. 

Any other debts

If you have outstanding debts, like credit cards or loans, you may want to consider protecting them with decreasing term life insurance to help ensure that the debt is paid off if you were to die. Learn more about decreasing term life insurance.

Your health and lifestyle

Protecting your health and lifestyle is something that should be considered by most people. Making sure you can help bay the bills if you become too ill to work can bring valuable peace of mind. Critical illness cover will pay out a lump sum for eligible claims, to help you get back on your feet if you are diagnosed with a critical illness like cancer, a heart attack or a stroke. Learn more about critical illness cover.

Another option is Income Protection, which is like a sick pay policy. This aims to pay out up to 65% of your usual monthly salary when you are signed off sick by a doctor.  Learn more about income protection.

Your business

If you have a limited company, you may have things that need protecting (including yourself!) Please take a look at our business protection page to see the options available to you.


Unsure of your options?

Which type of life insurance cover do I need?

Once you have an idea of a figure you can then decide what type of policy you’re looking for. You can then choose to apply for a separate ‘single’ life insurance policy as an individual, or as a joint policy with your partner or spouse.
The 2 main types of life insurance are 'term' life insurance and 'whole-of-life' insurance.

Term life insurance

‘Term’ life insurance policies run for a fixed period of time (known as the ‘term’ of your policy) eg. 10, 15 or 25 years - but only pay out if you were to die during the term of the policy. There’s no lump sum payable at the end of the term.

Term life insurance has 3 types of cover:

  • Level term - The cost of your monthly premiums and pay out value are fixed throughout the term

  • Increasing term - The payout increases over time to protect the overall value from inflation

  • Decreasing term - Taken out alongside a mortgage or large loan. The payout decreases over time as repayments are made.

Whole life insurance

‘Whole-of-life’ insurance policies pay out regardless of when you die, as long as you keep up with your premium payments. This type of cover is typically of interest if you are determined to leave some form of inheritance to your family, or if you want to help with your funeral costs.

Naturally, these policies are typically more expensive than term insurance policies, since as long as you keep paying your premiums, the insurer will always have to pay out, whereas you may outlive a term insurance policy.

If you’re not sure, speak to us over the phone or through live chat, and we’ll be able to give you all the information you need to help you decide what’s best for you.

Critical illness cover

Another option is critical illness cover. While this is not a type of life cover, it can be especially helpful for planning for the unexpected. It pays out a lump sum if you are diagnosed with a serious illness, such as cancer or strokes. 

This money can be used to help with medical bills, cover any lost income or provide financial support to your family. It is important to note that the illnesses covered and the amount of money paid out will vary depending on the policy.

If you’re not sure, please speak to us over the phone on:

01392 43619


Request a callback

and we’ll be able to give you all the information you need to help you decide what’s best for you.

Can I take out more than one policy?

The short answer is yes. You can take out as many policies as you need to cover the different parts of your lifestyle. For example, you could have a package in place with the following:

Mortgage cover - this would help ensure your mortgage is paid off if you passed away

Family cover - this would help your family maintain their lifestyles if you passed away

Critical illness cover - to receive a lump sum if you are diagnosed with a critical illness

Income Protection - to receive monthly instalments if you are signed off work by a doctor

Whole life insurance - to pay for a funeral, pay inheritance tax, or even to leave an inheritance

Get the right package for you

We Shop Around

At Cavendish Online, we’re committed to ensuring our online life insurance fees and charges are highly competitive and transparent - so you know exactly what you are paying for when you use our different services. 

We can help you find the best and most affordable option for your individual circumstances with products from leading financial service providers and the best value possible with minimal charge amounts.

Go Online Or Give Us Call

Our website is easy to use and you could even have a policy arranged in as little as 30 mins. However, if you’re still not sure what’s the best amount of cover for you - you can just pick up the phone and speak one-to-one with one of our insurance specialists who can guide you through the process and support you in choosing the best option for you and your family. 

Call for a quote today...

Our team of expert protection consultants are here to help. Call for a quick quote and more information now: 

01392 241 850(Monday to Friday, 10am to 6.30pm)

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