Life Insurance Plans 

The importance of having a life insurance policy can’t be underestimated. Whatever stage of life you’re at, there’s a variety of options and policy types available to suit your needs. With the advent of the internet, it’s never been easier to arrange and compare life insurance cover online. However, choosing the wrong policy or not understanding your life insurance policy could leave you underinsured.

Cavendish are committed to providing our customers with all the information they need to make an informed choice about what kind of policy is right for them.

If your children, partner or other family members depend on your income to cover their living expenses and the home they live in, you should definitely consider family life insurance to help provide for your loved ones in the event of your death. You can’t rely on the government to take care of your family – the money they would get from the state is probably much lower than you’d expect.

To understand what type and level of life insurance you need, it’s important to take on board your individual circumstances, like savings, mortgages and existing credit arrangements in place. As everyone’s situation is different, so is the type of protection you need and depends on your personal situation and what stage you are in life. Your age, health in general (including if you smoke) and lifestyle are just a few factors that are considered when applying for cover and how much your monthly premium (payment amount) will be.

The 2 main types of life insurance are 'term' life insurance and 'whole-of-life' insurance.

‘Term’ life insurance policies run for a fixed period of time (known as the ‘term’ of your policy) eg. 10, 15 or 25 years - but only pay out if you were to die during the term of the policy. There’s no lump sum payable at the end of the term.

‘Whole-of-life’ insurance policies pay out regardless of when you die, as long as you keep up with your premium payments.

Bear in mind, life insurance usually only covers death. If you can’t provide for your family because of illness or disability, you typically won’t be covered.However most life insurance policies provide a terminal illness benefit or have an option to add critical illness cover. A terminal illness benefit will pay out on diagnosis of a terminal illness (that meets your provider's definition) and critical illness cover is designed to cover you in case you get a specific type of life-changing condition (again, which meets your selected provider's definition).

Life insurance should also be thought of as good value for money, especially when you consider that it could work out at just a few pence a day and the younger you are when you buy it, the cheaper your monthly premiums will be.

We have plenty of useful information and guides on our website, in particular to the difference between ‘term’ life insurance and ‘whole-of-life’ insurance (also known as life assurance).

Many people who have a life insurance policy in place tend not to review it very often, however, it’s important to understand if the policy still meets your needs - that’s where Cavendish can help.

Speak to us at Cavendish Online today for more information and to get a quote for life cover, call us on 03456 44 25 40.

Call for a quote

For more information and to get a quote please call us

03456 44 25 40

Apply with advice

Life Insurance Buying Mistakes

Prev article

Patients Turn to Self-Funding Amid Long NHS Hospital Waits

Next article