Getting the right amount of life insurance cover is a must, but so is getting the best rate. Finding the best value for life insurance rates doesn’t have to be difficult or even time-consuming.

Here are some key steps to find an affordable life insurance policy that meets your needs and budget:

Shop around

Once you’ve done your initial research, shop around to compare prices. Some may be more expensive than others, so take time to find one that provides sufficient cover at a competitive rate.

However, make sure not to choose a policy simply based on its low cost. Read through any fine print before committing to understand what’s covered by each plan.

Understand the different types of life insurance cover

It’s important to have a basic understanding of the life insurance policies available, so you can find the right one for your needs. The two main types of cover include whole and term life insurance:

Term life insurance

Term life insurance is often considered the cheapest type of cover. These policies protect you for a set period of time, generally ranging from 1 to 30+ years.

The policyholder pays a monthly premium during the policy term. If they pass away in that period, the policy pays out a lump sum to their family.

The premiums for this policy are usually fixed unless you add on indexation which increases the sum assured with inflation. Learn more about indexation.

Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.

Compare term life insurance online

Whole life insurance

Whole life policies are permanent life insurance policies that provide cover for the policyholder’s entire life.

These policies typically occur higher rates than term policies, but guarantee a lump sum payout when you die. Like term insurance, he premium rate remains the same during the policy unless you add indexation.

Joint life insurance

Alternatively, you can opt for joint life insurance. This provides cover for two people under a single policy. It's an ideal choice for couples wanting to protect their partner if they die. It could also work out cheaper than buying two separate single life  policies.

Joint life insurance policies can be term life insurance or whole of life and you can purchase a plan to payout on the first or second death. Premiums for these plans are fixed, unless you choose to add indexation.

The type of cover you choose could ultimately affect your premiums. Don’t forget about add-ons, such as critical illness cover - they can also lead to higher rates.

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Factor in your health and lifestyle

Many factors could affect your premium rate, including:

  • Age

  • Gender

  • Health & medical history

  • Occupation

  • Cover amount

  • Policy type

Identify any activities in your lifestyle that might affect your health and well-being. Common examples include smoking or extreme sports. You will need to disclose this with your insurer during your application.

Purchase only what you need

Every family has different needs, also meaning they require their own amount of cover. The amount needed could depend on both your circumstances and financial situation.

It’s important to remember that you should only purchase what you need. Don’t be tempted by having lots of cover. This could increase premiums, leaving you paying more. Instead, focus on a policy that covers any current or potential financial commitments your family may face.

Additionally, you may want to review your policy regularly, as your needs may change over time. If you find that you no longer need the same level of cover, you can always adjust your policy accordingly.

Think long-term

Consider the cost of your monthly premiums over the policy term. The last thing you want is to be unable to pay premiums later down the line. While the cost of a policy may seem manageable, consider how your situation might change.

If you are experiencing or later experience financial difficulty, please contact your insurer as they may have options available to help.

Some insurers and policies include waiver of premium, which will pay your premiums if you are unable to work. Some insurers may grant you a payment holiday, and some may offer to reduce the amount of cover you hold to bring down the cost.

Be sure to take action to ensure you don’t lose your cover.

At what age should I get life insurance cover?


The older we get, the more likely we are to be diagnosed with a medical condition that could increase the cost of cover, or even cause us to be declined altogether.

The best time to get life insurance is when you are young and healthy. This is because premiums for life insurance cover are often based on age and health. The younger and healthier you are, the lower your premiums may be.

Is life insurance taxable?

Life insurance payouts aren't taxable. However, there are some exceptions, such as if the value of your estate exceeds the threshold for inheritance tax.

If you're concerned about the value of your estate, consider writing your life insurance policy in trust. This can help ensure your payout is not considered as part of your estate and is therefore passed on to your loved ones with no tax implications.

Compare affordable cover rates in minutes

At Cavendish Online, we compare cover rates from leading providers, so you can be sure you’re getting the best deal. If you feel comfortable to  start the journey yourself without advice, simply enter your details, and we’ll provide you with a personalised quote for life insurance.

Alternatively, if you have a pre-existing medical condition, a dangerous hobby/job or would like some additional help, our team of experts can advise you to help you make an informed decision.

Speak to the experts...

Give our advisers a call today.

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.

The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 

01392 43 61 93(Monday to Friday, 9am - 5.30pm)

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