Life insurance provides peace of mind and financial security to you and your loved ones. However, choosing the right type can often be daunting and slightly bewildering. Each caters to different needs and circumstances, so finding the perfect one for you requires careful consideration.

With this guide, we’ll explore the main types of life insurance available in the UK to help you determine which one is best suited to your needs.

What is life insurance?

Before we outline the different types, it’s worth briefly explaining what life insurance is. Essentially, it’s a form of insurance that pays out in the event of your or someone else’s death. You can take out joint or single policies depending on your circumstances.

The main purpose of life insurance is to give your dependents financial security and support after you’ve passed, helping them to continue living life. Many people choose life insurance to support partners, children and families. But there are different types which you need to be aware of.

Term life insurance

This is the standard form of life insurance, covering you for a specific ‘term’ which can usually be anywhere between 5 and 40 years. If you or the person who’s insured passes away during the term, the policy pays out to a designated recipient or your beneficiaries.

Term life cover is suitable if you’re looking to protect your family for a specific time, for example, until a mortgage is paid off or your children are financially independent. And, because the term is limited, this form of life insurance tends to be more affordable than whole-life policies.

Whole life insurance

This form of life insurance is permanent and provides cover for the entirety of your life, as long as premiums are paid. The death benefit is paid out upon passing, but the policy accumulates cash value over the years which can also be withdrawn or borrowed.

If you’re looking for lifelong coverage and want to build cash value over time, whole life insurance could be the one for you. However, since everyone passes at some point, it’s the most costly of all the life insurance options.

Over 50 life insurance

If you’re already over 50, life insurance can be more expensive to take out because the risks are greater. Some people assume you can’t get cover past a certain age, but over 50 life insurance could help to give you and your family financial protection even if you think you’ve left it too late.

Many providers require no medical checks and guarantee payouts when you die. This money could help your family cover funeral costs, medical bills and any other expenses. If there are no bills to pay, they’ll have some extra cash to help them along in life once you’re gone.

Life insurance is there to support you and your family through the hard times. There are more important things to be worrying about than money, so it’s worthwhile getting signed up for a policy as soon as you can.


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