We are committed to providing customers with the cheapest route to buy life insurance. To allow you to choose the best option for you we provide 3 routes to apply.

 

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What Is Life Insurance?

To put it simply, life insurance is a type of insurance product that pays out an amount of money to your loved ones after you pass away.

Arranging life insurance can be a daunting prospect, but as you’re reading this, then it’s probably on your radar. Life insurance is a very important product which protects the people you hold closest. But, like other people, you haven’t yet got round to sorting out your own policy...

Is that because other, more exciting priorities have come up? Or because you aren’t sure how it all works, or because you think life insurance will be too expensive for you? Well, when looking at arranging your policy, it’s important that you do your homework and gain all the knowledge you need so you can live with peace of mind and continue to live the life you want to, without thinking, what if?

In the below guide, we will explain exactly what life insurance is, how it works, help you work out if you really need it, and why there may be no better time than now to finally sort out cover for you and your loved ones.

For more information please read:

When Should I Think About Getting Life Insurance?

Who is Life Insurance for?

First of all, you need to establish why it is you need life insurance. Below are a few scenarios which might ring true for you:

  • You have children: Life insurance can provide your children with financial support while they are growing up if they can’t count on your income.
     

  • Leaving a legacy: Life insurance is a good way of providing your loved ones with inheritance money when you pass away.
     

  • Your home: A payout from your life insurance can allow your family to pay off the mortgage after you pass, relieving them of a heavy financial burden.
     

  • Funeral costs: A life insurance payout can help out your loved ones with the funeral costs, providing them with a lump sum.

What are the different types of Life Insurance?

If we boil it down, there are really only two types of life insurance policies; “term insurance” and “whole-of-life”. Below is an easy to digest breakdown of the two:

Term insurance is the most basic form of life insurance. With this policy, you’re able to choose the amount of cover you need and the period of time which you want to be insured.

Putting it candidly, if you pass within this term, this will pay out to your loved ones. However, if you survive the term (which we hope you do), then the policy will not pay out, nor will the premiums you paid, be returned to you.

It’s up to you to choose what term you want the cover for. Ultimately, the length of cover will affect the size of your premiums.

The clue is in the name of this policy. We all, unfortunately, die one day, so as this policy is ongoing, it will pay out whenever that day comes.

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

 

 

Do I need a Life Insurance plan?
 

As we have established, life insurance will payout to your loved ones if something bad were to happen to you. You should consider getting covered if you have a partner or children who would struggle to live without your income or who’s life would be hugely affected without you around. The payout of life insurance can really help your loved ones cover the costs of utility bills, the mortgage, and other financial burdens, such as school fees. 

The main question to ask yourself is, would your family be able to live comfortably without your financial backing if the worst was to happen to you?

However, if you’re single and have no dependents, life insurance may not be the best way of covering yourself. There are other insurance policies which may be more beneficial for you, such as critical illness cover.

How much Life Insurance cover do I need?
 

The amount of life insurance that you need really depends on your personal circumstances and what you’d like to provide to your family. Going back to the reasons why you may need life insurance, you can work out how much cover you need for this...

  • Leaving a legacy

Life insurance allows you to leave some money for your loved ones when you pass. Your family may struggle without your financial support, therefore you will be able to give them a helping hand with whatever financial burden they encounter.​

  • Supporting your children

As your children grow up, there are a lot of fees that come with this; such as education fees, first cars, and other life circumstances that may incur a cost. Your payout can support these endeavours and ultimately help your children out throughout their life, even when you aren’t here.

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  • Buying a new house/covering a mortgage

You may decide that, should you pass away, you would like your life insurance to pay off your mortgage, so that your partner isn’t left with a large debt that they may struggle to repay alone. This could prevent your family from having to seriously change their lifestyle or, even worse, lose their home. 

  • Funding your funeral

We all know that funerals are becoming increasingly expensive, so you may also wish for your policy to cover the cost of your funeral. That way the cost won’t sit with your loved ones during an already upsetting and stressful time.

 

There really are no rules around what your life insurance payout can be used for and therefore how much insurance you need, it’s more a case of thinking about your personal situation. Of course, the more things you want to support your loved ones with, the larger the cover you will need.

How much is Life Insurance Cover?

Life insurance is a completely personal product, which can depend on...

  • Age

  • Health conditions

  • General lifestyle choices

  • How much cover you want

  • How long you want to be covered for

Just like any other type of insurance, the more likely you are to make a claim on your life insurance, the more expensive your premiums will be. This is why the whole-of-life policy is more expensive, as your family is guaranteed a payout. Whereas the younger and healthier you are, the cheaper life insurance will be for you. 

So, if you’re considering life insurance, it’s best not to delay, simply because we don’t know what’s around the corner and sadly many of us look to buy life insurance when it’s too late.

Studies have shown that many people actually overestimate the cost of life insurance. You may be surprised to find that life insurance is actually less expensive than you think, and policies can be purchased for just £10 per month or even less!

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How can I buy Life Insurance online?


Now we’ve hashed all the daunting details out and you’ve done your homework, it’s time for you to finally get yourself covered!

At Cavendish Online, there are a couple different options to help you find the best policy for you. You can either get a quote yourself, which takes just a few minutes of your time; just complete this form here.

Or, if you want some human interaction, you can choose to speak with one of our specialists over the phone, who are extremely friendly and will be able to help you choose the best cover for you and your loved ones. 

Call us on 01392 241 850 to reach one of our helpful consultants, and tick another task off of the ‘to-do’ list!

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