There’s a common misconception that life insurance is expensive which can often put people off buying cover. Cheap life insurance isn’t a myth - you just need to understand how it works and the options available. Luckily we’re here to help guide you on the path to saving money when buying life insurance.

Types of life insurance

When it comes to life insurance, the two main types of cover are whole life insurance and term life insurance. Both of these policies differ in how they work, as  well as typically differing in cost.

Upon many things, life insurance can help to support your family with finances such as:

Whole life insurance

Whole life insurance (also known as ‘life assurance) covers you for the remainder of your life. Just like any type of life cover, when you die your insurer pays out a fixed amount to your loved ones. 

After you’ve purchased cover you begin making monthly payments to your insurer. The cost of your premium is fixed throughout the policy - depending on the type of cover you buy. If for whatever reason you stop paying your monthly premiums, your policy may lapse and your cover will be ended.

While whole life insurance is typically more expensive, the policy pays out no matter when you die. With that in mind, you can rest easy knowing your family will be provided for when you eventually die.

Term life insurance

As the most standard type of life insurance, term life insurance is generally cheaper than whole life. The main difference is that the policy term expires after a certain amount of time (for example, 25 years). Your family will only receive a payout if you die with your agreed policy term.

Term life insurance has 3 levels of cover:

  • Balanced cover: Your premiums remain fixed throughout the length of the policy. The eventual payout amount also remains the same.

  • Decreasing cover: (Often referred to as mortgage life insurance) This is designed to cover large payments that your family would otherwise struggle to pay off alone, such as a mortgage. As you pay off the amount owed, the policy pay-out decreases over time. The end goal is that if you die, your family can use the pay-out to pay off the outstanding balance should they so wish.

  • Increasing cover: The eventual pay-out amount increases overtime to help try to protect its value from inflation. The downside is that because of this, your premiums will also increase to account for the increase in your pay-out.

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Which policy is cheapest?

Generally speaking, term life insurance is the cheapest type of life insurance policy. This is mainly because, unlike whole life insurance, it provides temporary cover (i.e. over an agreed, set period of time) rather than permanent cover.

The type of cover you opt for depends on the circumstances of you and your family. For example, if you want to cover a repayment mortgage, decreasing term life cover may be a good option to consider. However, if you are solely focused on providing indefinite financial support to your loved ones, whole life insurance may be more beneficial in the long term.

The cost of life insurance cover

Several factors determine the cost of life insurance. When you apply to buy cover, your insurer will give you a life insurance quote - this is an estimate of how much your monthly premiums will cost.

To determine the cost of your quote, you will normally be asked some general health and lifestyle questions. These questions are usually regarding your:

  • Age

  • Health

  • Occupation

  • Type of cover

  • Smoker status

  • Amount of cover


Age is one of the key factors in determining the cost of life insurance. As you get older, the cost of protection rises - mainly because your life expectancy lowers.

Products & Services from the leading financial brands

  • Zurich
  • Legal And General
  • Aviva
  • AIG
  • Beagle Street
  • LVE
  • Royal London
  • Vitality Life
  • Virgin Money
  • Budget Insurance
  • Scottish Widows

How can I get cheap life insurance?

While unfortunately there is nothing we can do to reduce your age, there are a few ways in which you get cheap life insurance:

  • Take out cover at an early stage - The longer you leave it, the more you could end up paying a significant amount for life insurance. That’s why it’s best to take out cover when you are young as it will likely be cheaper.

  • Quit smoking - Not only is smoking bad for your health, but it also increases the cost of your policy. Some insurers may even reduce your premiums if you give up smoking, as an incentive for you to go smoke-free.

  • Opt for joint policy - This is a popular choice for couples, which provides cover for two people under one policy. It can work out both cheaper and easier to manage than two single policies.

Helping you every step of the way

Searching for a cheap life insurance insurance policy? Then why not use an experienced advisory broker like Cavendish Online. Our team of experts can help you find the best policy for you and your family at an affordable price.

We won’t limit your search to just one company, but a full range of top providers. You can find a quote in minutes by simply filling out our easy to use form.

So what are you waiting for? Get covered, today!

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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