How much does life insurance cost?

If you pass away then life insurance can bring some financial security to your loved ones. So therefore, we often get asked how much does life insurance cost?

When you pass away, your family would usually get a lump sum payment that can be used to pay off debts such as a mortgage. You can also arrange to provide a regular income for them instead.

Life insurance isn’t a legal requirement but we think it is a good idea especially if you have anyone that depends on you financially, like a partner or children. Some mortgage providers do prefer you to have life insurance so they know the mortgage can be repaid if you do pass away.

Life Insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If you stop premiums, then the cover will lapse.

How does life insurance work?

Usually, life insurance policies pay out a lump sum if you pass away or are diagnosed with a terminal illness and are not expected to live longer than 12 months. When you choose your life insurance, you will have to agree on the amount of cover you would like, along with the people you would like to list as the beneficiaries.

During this stage it is important to think about what your family might need based on their living expenses and outstanding debts. The length of the cover needs to be considered. If you have children then the cover might be needed for the length of time your children will need financial support. Also consider if you require a joint or single life policy, a joint policy might be cheaper than two single policies but will only pay out when the first person passes away.

How much does life insurance cost?

The cost of life insurance really depends on the cover that you require. Cover can start from as little as £5 a month, however, there are a number of things that can affect how much your life insurance costs such as:

  • The amount of cover
  • Your health and lifestyle
  • Your age
  • The type of policy

The length of your life insurance policy really depends on what you want it to cover. If you want a life insurance policy to cover your mortgage then it makes sense to take a policy out that is the same length of time as the mortgage. If you want your policy to provide financial protection for your loved ones then consider when you think your family will be able to manage the finances without you.

If you would like advice on which life insurance policy is best for your personal situation and details about how much this life insurance costs, please get in touch and we will be able to help.

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