Life Insurance Quotes Explained: What You Need to Know Before You Apply
Published 24th of January 2013·Updated 29 April 2026
Reviewed by: Reviewed for accuracy April 2026
Getting a life insurance quote is straightforward once you understand three core concepts: how much you want the policy to pay out (the sum insured), how long you want it to run for (the term), and how much you will pay each month (the premium). Once you have these three figures, comparing policies is simple.
Short Summary
The sum insured is the lump sum your beneficiaries receive if you die during the policy term. A common starting point is ten times your annual salary, adjusted for your mortgage balance, number of dependants, and your partner's income.
The term is how long the policy lasts. Most people tie the term to their mortgage length or to the period their children will need financial support, typically until they turn 18 or finish full-time education.
The premium is the monthly cost. For a healthy non-smoker in their 30s, meaningful life insurance cover often costs less than £15 per month. Smoking, age, and pre-existing health conditions all increase the premium.
A whole of life policy has no fixed term and pays out whenever you die. It is more expensive than a term policy and is generally used for estate planning rather than straightforward family protection.
What is the sum insured?
The sum insured is the amount your insurer pays to your beneficiaries if you die while the policy is in force. Choosing the right amount is the most important decision you make.
Start with your outstanding mortgage balance. Your policy should at minimum cover this, so your family is not forced to sell the home if you die. Add to this an estimate of how much your dependants would need to cover living costs for the period they would rely on your income. A financial adviser can help you calculate a more precise figure, but a multiple of ten to fifteen times your salary is a widely used starting point.
What is the policy term?
The term is the length of time your policy runs. If you die within the term, the policy pays out. If you survive to the end of the term, it ends with no payout (unless you have a whole of life policy).
Most people choose a term based on their mortgage or the period their children will need financial support. A 25-year mortgage suggests a 25-year term. If your youngest child is three, a 20-year term would cover them to age 23.
| Policy term | Typical use case | Relative cost |
|---|---|---|
| 10 years | Short-term debt or income replacement | Lower |
| 20 years | School-age children, mid-mortgage | Moderate |
| 25-30 years | Longer mortgages, young children | Higher |
| Whole of life | Estate planning, no fixed end date | Most expensive |
What affects the premium?
Your monthly premium is calculated based on the level of risk you present to the insurer. The main factors are:
Your age at the time of application. The younger you are when you apply, the lower your premium. A policy taken out at 30 will cost considerably less per month than the same cover applied for at 45.
Whether you smoke. Smokers pay roughly twice the premium of non-smokers for equivalent cover, because smoking significantly increases the statistical likelihood of death during the policy term.
Your health. Pre-existing conditions such as diabetes, heart disease, or a history of cancer will increase your premium or may result in specific exclusions. Full and accurate disclosure is essential; a claim can be rejected if you did not disclose relevant health information when you applied.
The sum insured and term. Higher cover over a longer period costs more.
What is the difference between level term and decreasing term cover?
Level term insurance pays the same fixed lump sum regardless of when you die during the term. The payout remains constant from day one to the final day of the policy.
Decreasing term insurance reduces the potential payout over time, typically in line with a repayment mortgage balance. Because the insurer's maximum liability falls each year, decreasing term cover is cheaper than level term for the same starting sum and term. If your primary concern is paying off your mortgage, decreasing term cover is usually the most cost-effective option.
Frequently Asked Questions
How do I know how much life insurance I need?
A practical starting point is to add together your outstanding mortgage balance and a multiple of your annual income equivalent to the number of years your dependants would need support. For most families with young children, this produces a figure of between £200,000 and £500,000. A free session with an independent financial adviser can help you arrive at a more precise number.
What is the difference between term insurance and whole of life insurance?
Term insurance runs for a fixed period and pays out only if you die within that period. Whole of life insurance has no end date and will pay out whenever you die. Whole of life policies are considerably more expensive and are typically used for inheritance tax planning rather than family protection.
Can I get life insurance if I have a health condition?
In most cases yes, though the premium may be higher or specific conditions may be excluded. Specialist insurers and brokers who deal with non-standard risk can often find cover where a mainstream provider cannot. The Association of British Insurers advises always disclosing your full medical history accurately.
Should I get joint life insurance or two separate policies?
Two separate policies generally offer better protection. A joint policy pays out once, on the first death, leaving the survivor without cover. Two single policies each pay out on the respective death, providing protection for both partners independently.
Does life insurance pay out for any cause of death?
Most policies pay out for any cause of death, including illness and accident, subject to any exclusions in the policy. A common exclusion is suicide within a specified period of taking out the policy, typically the first 12 months. Pre-existing conditions that were not disclosed at application may also result in a rejected claim.