Insurance can be easier to understand when you know what each policy is designed to do—and what it might not cover. This guide explains key points to consider before speaking to a qualified professional.
What does life insurance do?
Life insurance is designed to pay a benefit if an insured person dies while a valid policy is in force. The money can help dependants with a mortgage, household bills or other commitments. The exact payment and conditions depend on the policy.
Level term, decreasing term and whole-of-life
Level term insurance generally maintains the same sum insured for a fixed period. Decreasing term insurance reduces the amount over time and is often considered alongside repayment mortgages. Whole-of-life cover is designed to remain in force for life, subject to the policy terms and ongoing premiums.
Single or joint cover?
A joint-life policy commonly pays on the first death and then ends, whereas two individual policies may provide separate cover for each person. Compare the overall cost, flexibility and the protection remaining after a claim.
How much cover might you need?
Consider outstanding debts, dependants, income replacement needs, childcare costs and any existing workplace benefits. The right amount and term depend on personal circumstances, affordability and priorities.
What affects premiums?
Premiums can depend on age, health, smoking status, occupation, lifestyle, policy term, benefit amount and insurer underwriting. Answer application questions accurately; non-disclosure can affect a claim.
What to check before applying
Review exclusions, any waiting or deferred provisions, whether premiums are guaranteed or reviewable, and whether the policy can be placed in trust where appropriate. Trust arrangements may need specialist legal or tax advice.
Frequently asked questions
Does life insurance cover every cause of death?
Not necessarily. Terms, exclusions and eligibility vary by insurer and policy. Read the policy documents carefully.
Can I have more than one life insurance policy?
Often yes, subject to underwriting and the insurer’s terms. Check that total cover remains suitable and affordable.
Is life insurance compulsory for a mortgage?
Generally no. A mortgage lender may require buildings insurance, but life insurance is usually optional.
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Start an enquiry →Reviewed for general clarity: October 2026. Product terms and regulations may change. Check current policy documents and obtain appropriate advice before making decisions.