Finding the Right Life Insurance for You

Life insurance helps to protect the people you care about if you pass away. It can give your loved ones a cash sum to help cover funeral costs, household bills and mortgage repayments.

The right policy for you depends on your personal needs, age, and financial goals. This guide will help you understand your options so you can choose the right cover with confidence.

What is life insurance?

When people rely on you financially, life insurance can give you peace of mind. It’s a way to help protect the people you love if you were to pass away.

Most people get life insurance to cover things like:

• Mortgage payments
• Everyday family costs
• End -of-life expenses

What factors to consider when you look for a life insurance policy

When you’re looking for life insurance, try to consider these things:

• How much cover you need: This is the amount of money your loved ones will get.
• How long the policy lasts: This is the number of years your cover is in place.
• The monthly payment: Also known as your premium.
• The policy terms and conditions: The small print that explains how the policy works.

Some policies have premiums that are fixed, which means they will not change. Other policies have premiums that are reviewed and can go up.

Always check if your premiums are fixed or reviewable.

What are the different types of life insurance?

There are two main types of life insurance available in the UK:

• Term life insurance: This policy covers you for a set period, such as 20 years. If you pass away during this time, your loved ones get a payment. If you do not, the policy ends, and you do not get your money back.
• Whole of life insurance: This covers you for your whole life. It will always pay out when you die, no matter when that is, if you have kept up with your payments.

There are also policies designed for people over a certain age. For example, over 50s life insurance is a popular choice for older people. Some policies may also include critical illness cover. This pays out if you are diagnosed with a serious illness.

To understand the difference between a policy that pays out over a set term and one that covers you for life, read our guide on the difference between life insurance and life assurance.

Most life insurance providers now offer quick online quotes and applications. These make it easier and faster to get cover. Our guide to life insurance has more information on the different types of policies available.

How to compare life insurance policies

To get the best value, you should compare:

• Monthly payments.
• The payout amount.
• Exclusions, which are things not covered by the policy.

Always read the policy documents carefully before you sign up. If you do not give all the correct information, your claim may be rejected later.

You can also discuss the best life insurance options for you with a financial adviser.

How your age, health and lifestyle affect your policy

When you apply for a life insurance policy, the provider will ask about your:

• Age
• Smoking habits
• Medical history

This helps them decide how much you will pay each month.

If you have medical conditions like high blood pressure, you might pay a higher premium. However, many providers offer cover for people with pre-existing conditions.

Some policies, like over 50s life insurance, don’t ask for a health check, although they usually include a moratorium period. For example, a two-year moratorium period means the full payout is not available until the moratorium period is elapsed.  Conditions you may have had prior to application are not considered when assessing the payout due.

You must be honest on your application form. If you are not, your policy may be cancelled, or a claim may not be paid out.

How to work out how much cover you need

The amount of cover you need depends on your situation. Think about:

• Outstanding debts, such as a mortgage.
• How much money your family needs.
• Funeral costs.

The goal is to choose an amount that will leave your loved ones financially secure. The right amount of cover is a balance between what you need and what you can afford each month.

How to get a life insurance quote and competitive rates

Life insurance is usually cheaper the younger you are. But the right time to get a policy depends on your personal circumstances, not just your age.

For more information, read our full guide on what age to get life insurance.

With Over 50s policies, the premium is usually fixed, and you’re guaranteed to be accepted if you meet the age requirements.

You can get a life insurance quote directly from a provider or by using an independent broker.

Key things to remember

• The best life insurance for you depends on your age, health and financial goals.
• There are different types of life insurance policies, so compare them carefully.
• Be honest on your application form to make sure any future claim is paid out.
• There are different types of policies, so compare them carefully.
• Look for a transparent provider who offers value and long-term security.

The right type of insurance for you depends on your personal circumstances. If you are unsure which policy to choose, you can get in touch with a financial adviser, who will be able to take you through the options available.

How Shepherds Friendly can help you

At Shepherds Friendly, we’re proud to have been named the best Over 50s Life Insurance provider by YourMoney.com.

If you are a UK resident aged 50 to 80, our Over 50s Life Insurance plan is a simple and affordable way to leave a cash sum for your loved ones.

We also offer Income Protection which can provide a regular income if you’re unable to work due to illness or injury.

Get an Over 50s Life Insurance quote online or call our friendly team on 0800 56 249.