Life insurance comparison tools are really useful to help see your options at a glace. Get quotes and compare them all in one go and without obligation.
Here is a table of the most competitive rates for £100,000 of life insurance we could find calculated on 26 October 2021 to provide some ideas of how much life insurance could cost.
It’s always best to compare life insurance quotes
online before buying to check you are getting the best deal. As you can see delaying the purchase of life insurance means the cost rises (with age) and there is the additional risk that increasing weight (and BMI, body mass index), and medical factors may put the price up too. Life Insurance Comparison Tool £100,000 Single Life Insurance Rates for Non-Smokers
Updated: 26 October 2021 (Source: PayingTooMuch.com) Life Insurance Comparison Tool £100,000 Single Life Insurance Rates for Smokers (that’s if you’ve used tobacco or e-cigarettes within the last 12 months)
Updated: 26 October 2021 (Source: PayingTooMuch.com)
Policy Types Level Term Life Insurance
Level term life insurance provides a fixed pay-out on death if death occurs within a fixed number of years that you select at outset. For example if you are 35 and you buy a 20 year £100,000 policy, then should you die between the ages of 35 and 55 the life insurance will payout £100,000. If you die aged 56 then nothing would be paid as the policy would have expired.
As you become more likely to die with age, the longer the term of the policy, the older you are when the policy finishes, the more likely the insurer might be to pay-out and hence the higher the premium.
Term life insurance has a very real chance that it will not pay-out, which means (good news) you’re unlikely to die during the term. Whole of Life Insurance
Whole of life insurance means that once the policy starts (at a fixed premium forever), you carry on paying the premiums until either you decide you don’t need the insurance any more or you die. The insurance can never be withdrawn by the insurance company no matter how old you are.
Interestingly the oldest person yet to have lived died aged 122 years. Had they had a whole of life insurance it would then have paid out, (unlike a term life insurance). Uses of Term vs. Whole of Life Insurance Term life insurance
is usually used to insurance shorter term risks which can include loans and mortgages which should be repaid immediately on death. Term insurance is also used to protect children who (in theory) become independent adults eventually and less reliant on Mum and Dad for emotional and financial support. In the same way term insurance is used to protect maintenance payments to divorced couples where children are being supported. Whole of life insurance
is used where the primary motive is to protect a partner for life which includes your wife or husband. Secondary uses of whole of life are for estate protection where there is a possibility of inheritance tax becoming due. Life Insurance Comparison Tool
In summary there is no substitute for obtaining a personal quote which will be based on your own date of birth and using today’s most up to date rates from a wide panel of the UK’s top insurers.