Before thinking about any detailed consideration of the best Life Insurance, you need to decide what type of life protection policy is right for you and your circumstances.  

Decreasing Term Life Insurance policy may be right if you want to protect your loved ones until your repayment mortgage is paid off as the amount insured will fall alongside your outstanding mortgage balance.

A Level Term Life Insurance policy, meanwhile, is generally more suited to family protection or ensuring an interest-only mortgage, where the capital balance doesn’t fall over time, remains protected throughout your mortgage term.

 

Family Income Benefit is a type of Life Insurance which, rather than paying out a lump sum, pays out a regular income (either monthly or annually) to your dependent's after your death. This provides a much more manageable payout than a single lump sum and tends to be best for ensuring your loved ones can maintain their lifestyle should you pass away.

Whole of Life Insurance could be the right option if you want to ensure your loved ones have a lump sum after you’ve gone, possibly to pay funeral costs or meet an inheritance tax bill, as there is no set term – the policy lasts until your death providing you keep paying the premiums.

Before asking the question which is the best Life Insurance it is important to make sure it is appropriate. Life Insurance is really only valuable if you would be leaving loved ones or an outstanding debt behind. For many of us there are families who would be left in financial difficulty or mortgages that need repaying. That’s where Life Insurance can step in to provide invaluable financial support should the worst happen.

Well that's 100% the one thing we are guaranteed in life. Unfortunately death is a risk we often shy away from thinking about, underestimating the chances of it happening prematurely and the impact it would have on those around us.

Insurance providers are very transparent with their claims data publishing them on their website annually.  For further information please ask.

Life Insurance has few standard exclusions however most policies tend to exclude the following.

• If the death is self-inflicted

• If the death is caused by misuse of drugs or alcohol

• If the death is due to involvement in terrorist activity or war

• If the death is caused by reckless activity or gross negligence

Suicide is excluded with most insurers however it is often only excluded for a set period of time after taking out the policy – typically 12 months.

If you are going to spend your hard earned money on a Life Insurance policy you want to know if the worst did happen that it would pay out. The Association of British Insurers collates the industries claims statistics and 2018 published results showing 97.4% of term insurance claims were successful, as were 99.98% of whole of life claims.

Roshani Hewa, Assistant Director, Head of Health and Protection at the ABI, says:

“It’s good to know that families going through some of the worst times, dealing with a loss and serious injury or illness, are at least getting more support from insurance products than ever before. The growing size of a typical life insurance claim shows how much of a difference such cover can have, and the potential difficulties families without it might face."

“Falling ill or being injured can be traumatic, especially if you find yourself unable to work. Protection insurance is there to ease the financial burden, so it’s heartening to see the levels of protection showing such positive growth, particularly considering the excellent mental health support many products provide.”

For the small proportion of claims that weren’t paid, the ABI cites that this was largely due to clients not disclosing important information when taking out the policy, or claiming for a condition that is not covered by the policy.

When setting up your policy it is important to be as open and honest as possible with regards to existing health conditions and any hazardous pursuits you may undertake. It can be really valuable speaking to an adviser to ensure all of the above is set out appropriately to your needs and circumstances for the correct cover to be put in place with the correct provider.  Speak to us to ensure your application is completed correctly.

 

The cost of Life Insurance will depend on various different factors, with the main five being:

• How much you choose to insure your life for

• How long you want to insure your life for

• The sort of life insurance policy you choose (e.g. Level / Decreasing Term Assurance, Family Income Benefit or Whole of Life Insurance)

• Your current state of health and any pre-existing medical conditions

• Your smoker status.

Many of the best Life Insurance policies will have additional benefits above and beyond offering a payout on the policyholder’s death. These may be included as standard or offered for an additional premium. It may seem natural to assume that the ‘best’ policy has the widest range of such additional cover areas, but consider what it is that you actually need and want. Paying for more cover than you need is not the way to find the best Life Insurance, but some of the cover areas to think about include:

Most Life Insurance policies will offer Critical Illness Insurance as an add-on. If you choose this cover, it will increase the price of your premium; however, this is likely to be a better choice in terms of price than taking out Life Insurance plus a separate critical illness cover (CIC) policy. If you add CIC to Life Insurance, the main thing to be aware of is whether you’re buying an independent policy or an integrated one. With an integrated policy there can be only one payout, meaning that – should you make a successful critical illness claim for the full sum assured – there will be no further payout from the Life Insurance after you die. Independent critical illness cover allows the Life Insurance element of the policy to continue after a successful critical illness claim.

Terminal illness cover is usually a standard feature of Life Insurance policies, allowing for a payout to be made before the policyholder’s death if they’re diagnosed with a terminal condition (having less than 12 months to live).

Generally, guaranteed Life Insurance premiums – where the monthly sum you pay doesn’t change through the life of the policy – are seen as ‘better’ than reviewable Life Insurance premiums. This is because the insurer can’t change the amount they charge you. Reviewable premiums may be cheaper at the outset of the policy, but could prove significantly more expensive in the longer term as insurers are free to raise premiums over time. This may happen if, for example, the provider experiences higher claim levels than it had anticipated, or if a major change in interest rates increases its cost base.

This option can mean that, if you find yourself in unfortunate circumstances, your Life Insurance policy remains in place without you having to continue to make premium payments; this may be, for example, if you can’t work because you’ve become seriously ill.

Some of the best UK Life Insurance companies on the market today include:

Of course, there a number of factors you should look at when comparing Life Insurance companies to find out which one is the best for you. Most life insurers, like all insurers, publish their policy documents on their website, so you can see the level of cover you might be getting if you chose them.

We exist to help you find the best life insurance for your circumstances and do so at the most competitive premiums. We  can provide you with all the advice you need to make an informed decision.

We started Willoughby Bespoke Protection because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to let us help.

• There is no fee for our service.

• We are impartial.

Willoughby Bespoke Protection isn’t tied to any insurance company, so we can provide completely impartial advice to make sure you get the most appropriate policy based solely on your needs.

• You’ll speak to a dedicated expert from start to finish.

You will speak to a named expert with a direct telephone and email. No more automated machines and no more being sent from pillar to post – you’ll have someone to speak to who knows you.

• Gain the protection of advice.

You are protected. Where we provide an advised service we are responsible for the policy we set-up for you. Doing it yourself or going direct to an insurer won’t provide this protection, so you won’t benefit from these securities.

• Claims support when you need it the most.

You have support should you need to make a claim. The most important thing when it comes to insurance is that claims are paid and quickly. We are here to support you during the claims process and make sure it’s as smooth and stress free as possible.