Life insurance is an important tool to protect your loved ones from financial difficulties if you should pass. But with so many providers and policies on the market, it can be overwhelming to choose the best policy for you and your family. Fortunately, if you start a search online today, you can learn more about the top life insurance options in the United Kingdom.
Types of Life Insurance
Many flexible life insurance packages offer excellent coverage options. Taking into consideration the average cost of a life insurance policy, you may be eligible to receive £175,000 in coverage for only £11 per month.1 However, to pick a life insurance policy that meets your needs, it’s important to familiarize yourself with the various types of life insurance available.2
Shutterstock: fizkesWhole Life Insurance
This option offers lifelong coverage and includes a savings component that builds cash value over time. This type of insurance is ideal for those who want to provide long-term financial security for their beneficiaries and also receive a return on their premium payments.
Term Life Insurance
Those who need coverage for a specific period of time find this policy straightforward and affordable. It provides a death benefit to the beneficiaries if the policyholder passes away within the term of the policy, which typically ranges from 1 to 40 years.
Joint Life Insurance
This policy covers two people, typically a married couple or domestic partners. The death benefit is paid out upon the death of either person, making it a cost-effective option for couples who want to ensure that their partner is protected in the event of their passing.
Over 50s Life Insurance
People over the age of 50 can take advantage of this policy. It typically has no medical underwriting and offers a guaranteed acceptance for those who meet the age requirement. This type of insurance is ideal for those who may have trouble securing traditional life insurance due to pre-existing health conditions.
Critical Illness Insurance
This type of insurance pays out a benefit if the policyholder is diagnosed with a specified serious illness, such as cancer or a heart attack. This type of insurance can help policyholders cover the cost of medical treatment and other expenses.
Now that we’ve reviewed the most common forms of life insurance, let’s explore the top insurance companies in the UK.
AIG Life
AIG Life offers a range of life insurance products, though they do not sell direct-to-client.3 To take advantage of their products, you must speak to a financial advisor or insurance broker. Alternatively, you can purchase AIG Life products through other companies such as Churchill and Direct Line.
AIG term insurance is available to customers aged 17 to 86. It offers a variety of options, including level term with a fixed payout, decreasing term for mortgage repayment coverage, and increasing term to keep pace with inflation. Customers can also choose from individual or joint life insurance coverage.
Aviva
Aviva is a top life insurance provider, offering a wide range of coverage options. With Aviva, you can choose from level, decreasing, or increasing cover life insurance. Plus, you have the option to add critical illness coverage for an additional premium.
The coverage is available to anyone between the ages of 18 and 77. However, the policy must end before the policyholder turns 91. Aviva also offers joint life insurance policies, which can provide coverage for married couples or domestic partners.
Legal & General
Legal & General provides life insurance policies with flexible options from only £5 a month. Customers can choose between level term insurance with fixed premiums and a cover amount, or decreasing term insurance, which reduces the coverage amount over time. Critical illness coverage is also available.
The minimum purchasing age is 18, while the maximum age is 77. Coverage must end before the policyholder reaches 90 years of age.
Royal London
Royal London is a mutual life insurance company that is policyholder-owned. The company offers a range of life insurance options, including term life insurance and whole life insurance.
Royal London offers straightforward life insurance options for UK residents aged 18 to 70. Customers can choose between level term coverage, where premiums and the cover amount remain constant, or decreasing term coverage, ideal for mortgage protection.
Liverpool Victoria
Liverpool Victoria (LV) provides flexible life insurance options, including Level and Decreasing Cover. Customers can choose to provide their loved ones with a fixed payout or one that decreases in line with outstanding commitments, such as a mortgage.
Coverage is available between the ages of 18 and 84, with policy terms ranging from 5 to 50 years. However, the policy ends before the policyholder turns 89. With LV=, customers have the ability to tailor their life insurance coverage to their specific needs and circumstances.
Compare Quotes To Get The Best Price
You simply can’t afford to make the wrong choice when it comes to life insurance. With so many options available in the UK, it’s important to compare quotes and coverage options from multiple providers.
Additionally, take the time to read reviews and ask for referrals. Word of mouth from friends and family can help you find a life insurance policy you can trust. By following these steps, you can secure life insurance that fits your budget and protects your loved ones.