How do life insurance policies work?

Different types of life insurance policies work in different ways. Whether you’re looking to protect your mortgage or leave something behind for loved ones, there’s a life insurance policy to suit your situation:

• Level term life insurance – if you pass away during the policy term, your insurer will pay the policy benefit, a lump sum agreed at the start of the policy
• Mortgage protection insurance – also known as decreasing term insurance. If you pass away, your insurer will pay the calculated amount of cover at that time – the amount of cover reduces in line with your repayment mortgage
• Critical illness insurance – if you are diagnosed with a critical illness pre-defined by your insurer (such as cancer, heart attack, stroke or loss of limb), your insurer will pay out the amount you’re covered for

How to compare life insurance

Before you compare life insurance quotes, consider your options:

• What type of policy you want – level or decreasing (mortgage protection)
• How much cover you need – consider your debts as well as any dependents
• How long you need it for – choose cover from 10 to 50 years
• Whether you want to add extras – critical illness cover is included with some policies
• Who to include – you may want to take out a joint life insurance policy

It takes just a few minutes to get an initial life insurance quote, with cover available from as little as £5 per month. For more information and tips on finding the right cover, read our life insurance guides below: