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Buy Life Insurance

Section: Family Insurance
Life Insurance

Just 16p a day for a £100,000 payout.

Life insurance is not easy to think about but planning ahead is something positive you can do for your family at a time of loss.

  • In the UK, an estimated 500 women become widows every day*

 A life insurance policy could allow your partner or family to pay off the mortgage after your death or diagnosis of a listed critical illness. It could also provide for your children as they grow up. Perhaps you'd like to ensure there is an inheritance sum for their future or would like your funeral costs covered.

  • The average funeral expenses amount to £3,400 in the UK~

Life insurance traditionally protects the  salary of the main earner within the household but if you're a stay at home parent, there would also be a financial impact - your children will need to be cared for.

Family Insurance Services, a specialist broker in insurance policies for families can guide you through the types of life insurance and find the best possible deal for you and your circumstances, now and in the future.

When you buy life cover, it can last for either a fixed period (term insurance) or for the rest of your life (whole of life insurance) and as a general guide, the higher the payout your life insurance policy offers, the higher your premiums.

For those wanting cover for a mortgage over a number of years, typically 25 years, term insurance is usually recommended. Within this, there are two types of cover, level and decreasing term insurance. Level term insurance, is just that, the premiums and the payout remain at the same level for the duration of the term. A decreasing term policy final payout reduces in line with the outstanding balance of your mortgage so as the amount of mortgage to pay off declines, the amount of cover provided by the insurance policy does too. Both these type of policy only pay out if you die during the fixed period - that is the number of years you have agreed to pay the premiums for. This is usually between one and 30 years or for however long your mortgage is in place for, after which the policy ends. If your death occurs after that time, you will not be able to claim the payout.

A whole of life policy remains in place for the whole of your life and a payout will be made upon death whenever it occurs.  

To cover both parents, it is possible to buy a joint policy, however a payout is only made upon the first death and then ceases to exist so it may be more suitable to have two separate policies with the possibility of two payouts.

  • By the age of 16, around 1 in 20 young people will have experienced the death of one or both of their parents >

Reasons to Purchase

  1. Secure a mortgage-free home for your family
  2. Maintain the lifestyle you've built for your children and spouse
  3. Ensure funeral expenses can be paid
  4. Entrust your money to your children free of inheritance tax
  5. Products available for stay-at-home parents
  6. Boost short-term bereavement benefits

To get a quote, speak to one our experts or find out more click here.


1. What is life insurance?

Life Insurance is a policy to which monthly payments (premiums) are made for an agreed amount of time. If your death occurs during the agreed amount of time, a payout is made to one or more chosen individuals. You choose the amount of money (payout) and the length of time you want to pay premiums for.

2. What different types of Life Insurance are there?       

(a) Term Assurance - pays a benefit if you die within a specified term, can be a single or joint policy but there is no payout if you survive the term.

        i. Level Term Assurance (LTA) – the cover amount remains the same throughout the policy term and is usually arranged to cover an interest only mortgage or to provide protection for your family members' future.
        ii.     Decreasing Term Assurance (DTA) sometimes called Mortgage Term Assurance – the sum assured reduces each year decreasing to nil at the end of the term and is usually arranged to cover a repayment mortgage.

(b) Whole of Life – pays benefit upon death, usually for one life only.

Your premiums are guaranteed to stay the same for all types of life assurance unless you alter your policy.

3. How much life insurance do I need?

Most people like to be able to pay-off a mortgage and even provide a little extra for living expenses to cover bills and living expenses but also a few extras like holidays or provide music lessons or even university fees. You may find it useful to speak to one of our specialist advisors on 0808 168 1262 to discuss your family’s, current circumstance, their future needs and the options available to you.

4. How long should I be covered for?

You can choose to have a policy in place for the duration of your mortgage if you'd like to pay it off or you can have a policy which covers the whole of your life to ensure a payout goes to your loved ones.

5. How much does it cost?

We will always find the most suitable policy for you and your budget and while it's important to leave your loved ones with enough for their future, we'll ensure you can afford to pay for it now. We have policies from as little as 16p a day for a healthy 24 year old wanting £100,000 worth of cover.

Premiums are based on several factors including the amount of cover (payout) and how long it lasts. There are also several considerations which have an impact on your premiums, including:

Your age, health, smoking status and family medical history. Your job and lifestyle can also have an impact. If you enjoy extreme hobbies and have a hazardous job, your premium cost will increase.

6. What is Critical Illness Cover?

Critical Illness Cover pays out your chosen amount of cover if you're diagnosed with a specified condition covered during the length of your policy. These are conditions which will are terminal or have a debilitating impact on your physical or mental health. The specified list of conditions varies from insurer to insurer. Typically, critical illnesses include conditions like parkinsons, cancer, heart attack and stroke, amongst others. Critical Illness Cover can be added to your life insurance policy, but is likely to increase your premiums as we are seven times more likely to be diagnosed with a critical illness than we are to pass away.

7. What is Terminal Illness Cover?

Terminal Illness Cover pays out your chosen amount of cover upon diagnosis (rather than on death) of a terminal illness and have a life expectancy of 12 months or less. Terminal Illness is not usually available in the final 12 or 18 months of the contract. Terminal Illness Cover is included in all life insurance policies as standard.

8. Can I cancel my policy if I no longer need it?

Yes, you can cancel your policy. There is no charge for cancelling your policy, however unless you cancel within the first 30 days any premiums paid will not be returned to you.

9. My circumstances have changed, can I adapt my policy accordingly?

Some providers will allow for adaptations to a policy to cover things like marriage, the birth of a child, a mortgage increase or salary increase. We can ensure your policy is with a provider that allows for changes if you think your circumstances may change during your policy.

Most insurers also offer 'Joint life separation' which allows joint policies to be split into two new single policies if a couple divorce, dissolve their registered civil partnership or change a joint mortgage into one name.

10. Will my beneficiaries pay tax on the payout?

No. If you put the policy in trust, the payout will not become part of your estate and will therefore not be subject to inheritance or other taxes.

11. Could the pay out be stopped?

No, providing you have given honest and true information at the start of your policy and the policy terms and conditions have been adhered to then there is no reason why the payout should not be made. There are sometimes exclusions on policies like suicide and mental illnesses however if these circumstances do not apply to you, the payout should be made to your loved ones.

12. What is the application process for Life Insurance?

Applying for Life Insurance is straightforward but it can take some time to complete. Our advisors can help you at every stage from quotes to completion. You can apply online or on the phone. We can guide you through the forms or look through forms you have completed yourself – whatever’s easiest for you, we’re here to help you.

Facts & Figures

  • In the UK, an estimated 500 women become widows every day*
  • Approximately 23,600 parents die in the UK every year. That's one parent every 22 minutes+
  • 111 children become bereaved every day+
  • By the age of 16, around 1 in 20 young people will have experienced the death of one or both of their parents >
  • Around two children under 16 are bereaved of a parent every hour of every day in the UK*
  • The average funeral expenses amount to £3,400 in the UK~
  • The maximum Widowed Parent’s Allowance (WPA) is £112.55 a week.
  • Some are also entitled to a Bereavement Payment: a one-off, tax-free, lump-sum payment of £2,000

* according to the Women’s National Commission

~ Money Advice Service

+ Childhood bereavement charity Winston's Wish

> Parsons, 2011


Mother & Baby is a trading style of Bauer Consumer Media Ltd. Bauer Consumer Media Ltd is an Introducer Appointed Representative of Assured Futures Limited. The Mother and Baby life, health, travel and breakdown insurance service is provided by Family Insurance Services which is a trading name of Assured Futures Limited. Assured Futures Limited is authorised and regulated by the Financial Conduct Authority. Registered office: 2 Des Roches Square, Witney, OX28 4LE. Registration number: 3040737. You can confirm our registration on the FCA’s website; or by contacting the FCA on 0800 111 6768. All personal data collected is handled in accordance with our privacy policy which includes information on the use of cookies. This website should be used in conjunction with our terms of business.



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