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Life Insurance

Need help choosing which life insurance product?

What’s the difference between Life Insurance or Life Insurance with Critical Illness?

In short, Life Insurance only pays out a lump sum if you die, however Life Insurance with Critical Illness will pay out if you die or are diagnosed with one of the 63 critical illnesses. Therefore choosing the right cover means thinking about what you need to protect the people you love. This can include any money you owe, like a mortgage and the cost of living now and in the future. To help you, we’ve explained some of the main options you can chose on your policy and how it will affect your pay out if you need it.

Types of cover

Series of bars staying the same over time

Level cover

Cover remains the same so you can leave a lump sum of money to your family

  1. You can leave a lump sum of money to your family and dependants, or pay off a mortgage
  2. It provides certainty as both the cover and premiums are fixed

Reasons for not choosing ‘level term’

  1. Level cover is usually more expensive than decreasing cover
  2. It doesn’t keep up with inflation and will be worth less in the future
Series of bars going down over time

Decreasing cover

The amount of money you’re covered for reduces, usually in-line with a repayment mortgage

  1. It provides you with a lump sum of money that decreases usually in-line with your debt
  2. your premium remains the same for the duration of your policy
  3. Is usually cheaper than level cover

Reasons for not choosing ‘decreasing term’

  1. If you have an interest only mortgage or you are planning to make under or overpayments this product may not be suitable for you
  2. Depending on interest rates and when you die, the amount of money paid may be more or less than the amount you owe on your mortgage or loan

Man and a woman (partners)

Joint or single cover

You can choose to take out a plan that covers just yourself, you and your spouse, civil partner or someone you share a financial commitment with.

A single life plan
Insures only you and pays out if you claim during the plan term.
Joint life plans
Usually taken out where the death of either person will have a significant impact on the lifestyle of the other, particularly where there are children involved.
Single life plans for a couple
If the life cover is intended for a couple, then as an alternative to a joint plan, each person can take out their own single life plan and choose to have different amounts and cover periods.

Single life insurance

  1. If you both take out a plan, if one person claims their plan would pay out, and the other person’s plan would continue, and they would still be covered.
  2. This is unlike a joint plan, which only pays out once, when the first person claims. The plan then ends, and the second person is no longer covered.

Joint life insurance

  1. Covers both people insured for the same amount of cover and length of time
  2. The plan pays out for the first claim only
  3. After that, the plan stops and the surviving person is no longer covered
  4. Taking out a joint life insurance plan normally costs less than two single plans

Coin being placed in a slot

Amount of cover

You can choose the amount of cover at the start, but more cover will naturally be more expensive. For many people, how much they can afford is also a factor so being efficient is important. To help you decide how much you need think carefully about your family or dependants financial needs and any mortgage or large loan you will need to cover and this will help you determine how much you need to take care of the finances.

Semi-detached house

Protecting your home

Often your property is one of the biggest investments you will make in your lifetime, so it would make sense to protect your home, should anything happen to you. You can then be comforted knowing that your family won’t have this financial burden when they are facing a difficult time and they can remain in your home for their future.

Man and a woman (partners)

Protecting your partner

If anything should happen to you then your partner will need to still take care of the household expenses and bills. Think about your regular household expenses and savings to understand how long your partner could last without your income and how much money the family would need.

Man with his daughter

Protecting your children

The cost of childcare is one of the biggest expenses for family, especially if your children are thinking of attending college or university in the future, so think about how you can protect those opportunities for your children.

Stopwatch with time in years shown

How long do you need your cover to last?

Insurance can help with a financial loss when you most need it, but you need to think about what the money will be used for and how long it will be needed?

For example:

  1. if the money is to be used to repay a mortgage, you may want it to end when the mortgage is repaid
  2. if the money is going to be used to help pay the costs of raising your children, you might want it to end once your youngest is old enough to support themselves
  3. what is your is affordability - how much do you want to pay and how can you tailor your cover to fit your budget?

Our life insurance can run between 5 to 45 years, or 5-40 years if you include Critical Illness.

Our Life Insurance application is quick and easy

Do you need help?

Call LifeSearch on 0800 197 2266
Mon to Thu 8am - 8pm, Fri 8am - 6pm

Existing customers 0800 678 1906
8.30am - 6.30pm Monday to Friday

LV= have chosen to partner with LifeSearch to offer customers independent advice for protection products.

Calls may be recorded for training and monitoring purposes.

More about LifeSearch and your protection needs