What Is the Best Life Insurance Policy?

There isn’t a policy which is the best for everyone. No life insurance is ‘one size fits all’. However, if you keep reading, you should be able to grasp an understanding of which policy will be the best for you. Firstly, we need to establish the different policies out there. Simply speaking, there are two types of life insurance, ‘whole-of-life’ and ‘term’ but there are many other policies which fall under the latter. To get an understanding on which policy does what, click here.

So, now you understand each policy a bit better, we’ll now breakdown which cover is best for each situation, hopefully helping you decide which one will be best for you.

  • Whole-of-life: This insurance is best if you’re looking to clear an Inheritance Tax Bill (IHT) or to provide a lump sum to your loved ones

  • Level term: This insurance is great if you have to pay off an interest-only mortgage or if you have children and want them to sustain the same quality of life

  • Decreasing term: This insurance is ideal if you need to protect a repayment mortgage or situations where the cover decreases over time

  • Increasing term: This insurance will be for you if the cover you require needs to stay in line with inflation, such as purchasing of an asset

  • Convertible term: This insurance is great for those who need flexibility

  • Family income benefit: This type of policy is a popular choice for those looking to support dependants in the event of their passing away. Typically Family Income Benefit policies pay out a smaller lump sum monthly, quarterly or annually

  • Over 50’s: Such policies are not medically underwritten and instead have a moratorium period (link to explain terminology - where is this on the site?). For this reason they are popular with those with more complex medical histories, or those wanting to help loved ones cover funeral cost.

  • Renewable term: This insurance covers suits you if you have a need which is temporary, but may need to extend. 

  • Joint life: This insurance is ideal for couples and those who have a joint mortgage

  • Critical illness: Such policies will pay out if you are diagnosed with a Critical Illness which meets the providers definition, supporting you and your family financially should the worst happen

Hopefully, now you have a better understanding of each policy as well as more knowledge on which policy is the best for you. If you still need assistance with this, then be sure to get into contact with us here.

What Is the Cheapest Life Insurance For You?

The cost of your life insurance policy will ultimately depend on the policy type you choose to go with, as well as numerous other factors which you can find out more about here.

As we have mentioned, the monthly cost of life insurance varies depending on your life situation. However, cover can start from just £5 per month. 

By charging a one off-fee of £25, Cavendish Online asks all providers to rebate all the commission that would normally be paid to a broker. This makes it possible for us to offer the lowest possible life insurance premiums in the UK.

Read more about our fees here.

What Is the Best Insurance For a 30 Year Old?

Again, there is no ‘best’ life insurance for every 30 year old, some may have a critical illness whereas others will be perfectly healthy. However, the most common insurance type which this age bracket choose is level term life insurance. 

With level term, your premiums will stay the same throughout the life of this policy, which means it is easier to budget for.

What Is the Minimum Life Insurance Policy?

The minimum amount of cover you may want, again, depends on your current health and living situation. Many different financial experts suggest getting cover which is 10x your annual salary, however, if you have many dependents and outgoings then 15x or 20x your annual salary may be necessary.

If you want a more bespoke quote, then be sure to contact us here.