A lot of people think life assurance is expensive, but Cavendish Online are here to help you save money on cover. There are several ways to get cheap life assurance which we will help guide you through in this article as well as how it works and the types of cover.

What is meant by ‘life assurance’?

Commonly known as whole life insurance, life assurance guarantees a lump sum pay-out upon your death. Sadly we all have to die at some point in life, therefore you’ll want to ensure your family has financial support in place.

The main difference between life insurance and life assurance is that the latter provides permanent cover. Because of this, life assurance is typically more expensive than a standard life insurance policy. 

Unlike term life insurance, which has an expiry date, with life assurance your family receives a payout no matter when you die. Once you take out a policy you make monthly payments to your provider. Failure to keep up with these payments could result in your cover being canceled.

There are two types of life assurance:

Balanced cover - Also known as standard cover. Your premiums will stay the same even as you get older or develop medical conditions. When you die your loved ones receive a fixed amount payout to support them financially.

Maximum cover - A unique type of cover in which your policy is linked to an investment fund. Each month your insurer invests the money from your premiums to make a return that covers the eventual pay-out.

This cover has an element of risk versus reward. If the investment performs well, bonuses can be added to your policy. However, if it fails, your premiums may be increased to cover the loss. This policy usually starts with cheaper premiums that eventually rise in cost, overtime.

It’s also worth noting that over 50s life insurance can sometimes fall under life assurance. For more information please see our guide on life insurance for over 50s.

Start your Over 50s quote today...

Do I need life assurance?

Just like life insurance, life assurance is essential if you have dependents that rely on your support financially. Before you take out a policy it’s best to assess how much cover your family may need, otherwise you could take out more cover than required. 

If you need some help working out what cover you may need, why not consider speaking to an adviser

The payout from a life assurance policy can help your family with future finances such as:

If you are looking to cover a repayment mortgage, it may be worth considering a decreasing term life policy (also known as mortgage life insurance). Though life assurance can be costly, it’s worth providing your family with peace of mind.

How much does life assurance cost?

Several factors can affect the cost of your monthly premiums for life assurance. When you apply for cover your provider will ask you about your medical history, and family medical history. You'll also be asked about your lifestyle habits, such as smoking and alcohol intake.

Factors that typically determine the cost of your premiums:

Age and health are the two main factors that can affect the cost of your policy. Naturally, as you get older the risk of insuring your life rises, therefore so does the cost.

How can Cavendish Online help?

With Cavendish online, you could get a policy in as little as 30-minutes! It doesn't matter what stage of life you are in, or your financial situation. So why wait? Take advantage of our cover options and protect your loved ones now.

We provide 3 routes for getting cover:

Apply online:

For the cheapest life insurance, use our online quotation tools to get a quote. Quotation tools are great for people who want to save money, have very few disclosures and know exactly what type, duration and level of cover they want. 

Please note that at present you can only quote and apply for term based life insurance products on the Cavendish Online website. To purchase a whole life or life assurance policy you will need to either apply with guidance or apply with advice. 

Apply with guidance:

Our life insurance experts can help guide you through your quote and help you decide which policy to purchase. We'll run you through potential situations and recommend which cover you may need. You then proceed to select the type of policy you would like and on what basis.

Apply with advice:

We can help you find the right life insurance policy that suits your needs. The initial call with an advisor takes around 15-20 minutes. After that, they take a few days to conduct research and provide an advice report indicating areas of risk and the ideal policies tailored to you. We recommend this option if you have a pre-existing medical condition, hazardous occupation, dangerous hobby or if you’d simply like expert advice on what is best for you.

Our fees

Applying online

When you apply online, you can either pay a one-off £25 fee, in which we take no commission from the Insurer, or you can opt for a  ‘no fee’ option. In this case,  we receive a small amount of commission from the insurer.

When you select the fee-based option, the fee is due once your policy goes live. If you choose the ‘no fee’ option, Cavendish Online receives a commission from your selected insurance provider only once you have decided to purchase the policy.

Applying over the telephone

When you apply over the telephone through either the Cavendish Online Guidance or Advice services no fee is payable. Instead, if you proceed with a policy we will receive some commission from your chosen product provider for the work that we do. However, we do sacrifice a proportion of this commission to bring costs down for you. 

For information please get in touch as we will be more than happy to help.

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