What is UK life cover?

UK life cover provides customers with an insurance policy that will pay their families a lump sum payment should they die. UK life cover provides customers with essential peace of mind that should the worst happen, their families will be looked after.

UK life cover is offered in many different forms, although almost every adult in the UK over the age of 25 could benefit from some level of life insurance. Those with financial responsibilities, like a mortgage or children are particularly likely to benefit from such cover, with few families having the level of savings to fall back on that would be needed if they lost one of their earners.

Why do I need UK life cover?

UK Life cover provides customers with that financial peace of mind they need should the worst happen to them.

A potential UK life cover customer should ask themselves what would happen if they were to die tomorrow. If they are the main earner, who would pay for the mortgage, and put food on the table? If they spend the majority of their time looking after children, who would do that instead, and how much would the resulting child care cost?

Even customers who don’t earn much money each month provide other services for their family using their time, and time costs money.

What different types of UK life cover exist?

There are two main different forms of UK life cover. Term life cover is the most popular of the two, and provides customers with life insurance over a pre set term. Term life cover is usually offered at the same time a mortgage is offered, and customers can take advantage of the cover during their period of greatest financial responsibility in life.

After that responsibility is over, or the mortgage is paid off and the children have left home, many people have less, or no need for a life insurance policy. Customers do however face having paid for life insurance for 25 years, and seeing no return on their investment, as they have outlived their policy.

For customers who want to see a return on their investment, there is whole life cover, which provides customers with life cover for their whole life. It is around eight times more expensive than term life cover, but customers can borrow money against their final payout later in life.