Life Insurance UK – Types, Costs, and How It Works
TL;DR
Life insurance can pay a lump sum if you die during the policy term. Many UK families use it to clear the mortgage and support dependants. The right type (level term, decreasing term, or whole of life) depends on what you want to protect and how long you need cover for.
Life insurance can pay a lump sum if you die during the policy term. Many UK families use it to clear the mortgage and support dependants. The right type (level term, decreasing term, or whole of life) depends on what you want to protect and how long you need cover for.
Key Points
- Life insurance pays a tax-free lump sum to your beneficiaries
- Term life insurance covers you for a set period (e.g. 25 years)
- Whole of life insurance covers you for your entire life
- Decreasing term is commonly used for mortgage protection
Who Is This For?
Life insurance is particularly important if you have a mortgage, dependants, or anyone who relies on your income. If your death would cause financial hardship for others, life insurance provides essential protection.
Next Steps
Our FCA-regulated advisers can help you find the right life insurance policy for your circumstances. We compare the whole market to find cover that fits your budget and protects your family.
Frequently Asked Questions
Related Topics
Content reviewed: January 2026