What is Life Insurance?
Life Insurance is a way to safeguard your family’s financial future in the event of your unexpected passing. By paying regular premiums, you guarantee a payout to your loved ones, helping them manage essential expenses such as:
- Mortgage or rent payments
- Everyday living costs
- Children’s education
- Outstanding debts
With our Life Insurance options, you can choose between term and lifelong policies.
Types of Life Insurance
The type of life insurance you need will depend on your personal and financial circumstances, as well as your budget.
At Cover Direct, we can arrange the following life insurance options:
- Level Term Life Insurance: This policy ensures that if you pass away during the term, your dependents will receive a fixed sum. It’s an excellent way to provide for your family’s future, maintaining their lifestyle without financial disruption.
- Decreasing Term Life Insurance: Ideal for covering debts that decrease over time, like a mortgage. The payout decreases over the term, reflecting the reducing debt, ensuring your family won’t bear the financial burden of ongoing repayments.
- Whole of Life Insurance: Unlike term insurance, whole life covers you for your entire life, guaranteeing that your beneficiaries receive a payout no matter when you pass away. It’s a way to leave a legacy or ensure your family’s financial security permanently.
"It's the sad reality that a child loses a parent every 20 minutes in the UK. Life insurance is the bedrock of a secure financial plan for your family."
~ Jen, Cover Direct
~ Jen, Cover Direct
- Application: Complete the application process, which involves answering health and lifestyle-related questions. Your personal circumstances will influence the cost of your policy.
- Choose a Policy: Decide on the type of life insurance and select the duration and amount of coverage that aligns with your needs and goals.
- Premium Payments: Once your policy is in place, you will need to make regular monthly premium payments for the entire policy term. Failure to make these payments will result in the termination of your coverage.
- Claim Process: In the unfortunate event of your passing during the policy term, your loved ones can file a claim to receive a cash lump sum payment. The amount paid out will depend on the type of policy and the amount of coverage you have secured.
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How Much Life Insurance Do I Need?
The amount of life insurance you need depends on several factors:
- Debts and Mortgages: Enough to cover your outstanding debts, including your mortgage. The average mortgage debt in the UK is approximately £129,130 (source: Finder UK).
- Living Costs: To replace your income for dependents to maintain their lifestyle. The average cost of raising a child until the age of 18 in the UK is estimated at £166,000 for couples (source: CPAG)
- Education: If applicable, include the cost of your children’s education.
- End of Life Expenses: Cover any potential medical bills or funeral costs.
How Much Does Life Insurance Cost on Average?
The average cost of life insurance varies based on factors such as age, health, lifestyle, and the level of coverage. However, typically, the average monthly premium for life insurance is £34.43 per month* in the UK.
*Based on total revenue in latest published accounts following competitor market analysis
Things that affect the cost of your cover:
- Your health & lifestyle
- Cover amount
- Occupation
- Your age
Common questions about Life Insurance
Yes, you can cancel your life insurance policy at any time. Most policies include a "cooling-off" period, usually 30 days from the start of the policy, during which you can cancel without penalty. If you cancel after this period, you may not receive a refund on premiums paid.
Yes, but it can be more challenging. Some insurers offer specialised policies, or you may qualify for standard coverage with a higher premium or reduced coverage amount. Be transparent about your medical history when applying.
The outcome depends on the type of policy:
Term Life: Coverage will lapse, meaning you and your beneficiaries are no longer protected.
Permanent Life: If you've built up cash value, there may be options to use it to keep the policy in force, but eventually, insufficient payment will also lead to the policy lapsing.
Probably not. Employer-provided coverage is often a small multiple of your salary. It's a good start but likely insufficient to cover your family's full financial needs in the event of your passing. Supplement this with a personal life insurance policy.
Generally, life insurance death benefits are not considered taxable income by the HMRC. However, there might be exceptions in complex estate situations, so it's wise to consult a tax advisor if you have significant assets.
Does Life Insurance actually payout? - On average 98.3%* of claims in the UK result in a successful payout.
*https://www.abi.org.uk/news/news-articles/2021/05/record-amount-paid-out-to-help-families-cope-with-bereavement-ill-health-and-injury/
All insurance providers have their own exclusions and conditions. Our expert advisers are masters at pouring over the small print, so you don’t need to sweat this. We make sure you’ve got cover that does exactly what you want.
A claim can be made immediately after you’ve passed away & takes on average 1 month to payout. A death certificate will need to be given to your insurer when a claim is made.
You can request a copy of a death certificate from the General Register Office.
5 star Life Insurance.
We've helped thousands of people find the right cover. Read their stories:
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Every day people are making life changing decisions.
A young customer, in her early twenties, living with her mother and without children, faced the reality of minimal sick pay from her job as a marketing manager earning £30k annually.
Aware of the need to safeguard her earnings and savings, especially for future life events like homeownership, she opted for Income Protection. Understanding that being signed off work due to illness could jeopardise her financial plans, she embraced the policy.
Just six days after activating her income protection, she experienced an unexpected fainting incident on the London underground, resulting in hospitalisation and a diagnosis of fatigue, exhaustion, and vitamin D deficiency. Despite the distressing news, knowing she had the right cover in place provided a sense of reassurance.
Every day people are making life changing decisions.
A customer, aged 58, suffered a stroke four years ago, leaving him with residual effects such as loss of function in his right arm and leg.
Additionally, he was diagnosed as borderline diabetic with elevated blood pressure, cholesterol, and a high BMI. His family history, including his sister’s stroke at 58 and his brother’s benign brain tumour at 54, made it challenging to secure insurance from the broader market.
Despite numerous attempts by brokers over the years, only The Exeter was willing to consider his case. Finally, he obtained life insurance, bringing him immense relief. We plan to review his coverage annually to seek better rates.
Every day people are making life changing decisions.
A client faced challenges securing insurance due to his occupation as a pilot, limiting options to only three providers, one of which offered coverage at a high cost and required further medical underwriting due to his extensive flying hours.
However, as a whole-of-market provider, we successfully obtained coverage for him without additional underwriting, and at a significantly lower cost than previously quoted by other brokers.
Every day people are making life changing decisions.
In April 2024, Sam, the wife of our founder’s oldest friend Greg, contacted us after being diagnosed with myelofibrosis, a rare blood cancer. This diagnosis was particularly hard-hitting for us, as we had set up Sam’s Scottish Widows critical illness policy.
Throughout 2024, Sam faced intensive treatment and weeks of isolation from her two-year-old daughter. However, the financial burden was eased when her policy paid out within two weeks of her claim. Sam expressed her gratitude: “This lump sum isn’t for a holiday; it will literally pay the mortgage while I am on SSP during my treatment.”
Sam’s story underscores the importance of having the right protection in place, turning abstract statistics into a personal reality.
Every day people are making life changing decisions.
Carlo, one of our dedicated advisors at Cover Direct, recently assisted a client who needed to reassess his life insurance. The client believed he required more coverage due to changing circumstances. Carlo thoroughly reviewed his existing policy and advised an extension rather than purchasing a new, more expensive one, adding only £3 per month.
Carlo went further, recommending placing the policies in trusts for the client’s children to ensure they wouldn’t be included in his estate. He guided the client through all the paperwork, providing exceptional service. Thanks to Carlo, the client now has the right coverage at a reasonable cost and plans to return to us for future insurance needs.
Every day people are making life changing decisions.
As a business owner realised they lacked coverage for key personnel, they found Cover Direct online. Our thorough approach resonated with them. We took the time to educate them on various protection products, helping them choose Key Person Insurance to safeguard vital employees.
Our reasonable pricing also allowed them to opt for Relevant Life Cover, benefiting their employees and families. The peace of mind provided was invaluable, and the gratitude from their staff was unexpected. Our commitment to understanding and meeting their needs made all the difference.
