Top 10 UK Life Insurers [2023 Guide] - myTribe (2023)

Top 10 life insurance policies in 2023:

Based on our research and a comprehensive market analysis by experts, the following insurers and life policies are the best for life insurance in 2023:

1. Scottish widows: personal protection
2. LV= - Flexible Protection Plan
3. National Construction Society - Multiple Protection
4. Legal and General - Collapsing Level or Term Warranty
5. Sainsbury's Bank - Level Term Guarantee
6. Barclays - Mortgage Protection Plan
7. Zurich - Protection of life
8. AA - Mortgage Protection
9. Aviva - Life Insurance
10. VitalityLife - Integral

The 9 best UK life insurance companies and policies

In 2023, these are the top 9 UK life insurance policy providers:

1. Zurich - Adaptive Life Plan
2. Vitality - VitalityLife
3. NFU-AIG Comprehensive Life Insurance
4. Royal London - Pegasus Lifetime Plan
5. Legal and General - Lifetime Protection Plan
6. Scottish Wives - Protect Whole of Life Coverage
7. Aegon - Life Plan
8. AIG Life - Complete life insurance or care coverage
9. LV= - Lifetime+

The 10 Best Life Insurance Policies for People Over 50

In 2023, these are the top 10 UK over-50 life insurance policies:

1. Intelligent Insurance - Guaranteed Intelligent Life Insurance (Above 30 years old)
2. Legal and general - Life insurance plan for people over 50
3. Sainsbury's Bank - 50+ Life Insurance Plan
4. AA - Life Insurance Over 50 years old
5. Correios Money - Coverage for more than 50 years
6. Sunlife - Guaranteed plan for over 50s (limit)
7. Royal London - Over 50 years coverage
8. Aviva - Guaranteed Lifetime Protection Plan
9. Santander - Life Insurance Over 50 years old
10. LV= - Plano 50 Plus

Choosing the Best UK Life Insurance

To create these lists of the best UK life insurance companies and policies, we combined Fairer Finance's independent analysis of each company's claims, claims and transparency, together with a score on completion of each of their policies. For over 50 policies, we only review the integrity of each policy because they are guaranteed to pay, so an insurance company's claims record is not relevant.

Our goal is to help you identify the best life insurance policy based on quality indicators, not cost.

In another recent article, we also classified thebest health insurance in uk.

What is life insurance?

A life insurance policy is a contract between you and an insurance company that guarantees that your family or loved ones will be financially secure if you die. Having life insurance will give you peace of mind that, should the worst happen, your family will be well taken care of and will not be left without financial resources.

How does life insurance work?

You pay monthly or annual premiums and the insurer agrees to pay a sum of money if you die while the policy is active. This is provided that all its terms and conditions are met.

Each company and policy provider has its own conditions and, indeed, exclusions, so it's vital to read the fine print in your policy documents. For example, many providers will not pay if the death is caused by suicide, drug overdose, or a risky or reckless act. If you have any questions or concerns about the policy you are considering taking out, talk to the insurer and get clarification.

How much life insurance do I need?

There are a number of important questions to ask when considering how much life insurance you need.

• How many people depend on you financially?
• Do you have a mortgage that you need to cover?
• Do you or your family have other debts?
• Do you have any savings your family can use?
• Are there any future expenses you need to plan for, i.e. education costs for your children?
• What unforeseen costs might arise from your death?
• What death of service benefit does your employer offer, if any?
  

financial dependents

The first question to ask yourself is who is most financially dependent on you? Do you have a partner orchildrenWho depends on your income? Are there other family members who would struggle financially if you were no longer around to support them?

If you don't have dependents, you may not need to take out life insurance.

Some insurers offer free life insurance for new parents, but that might not be enough to cover all of your costs if the worst happens to you, so that's fine.worthconsidering your options if you are expecting a baby.

death in service and rescue

Before looking at how much coverage you need, it's important to understand what arrangements you already have, such as death-in-service protection from your employer or, in fact, your own savings. Even if you don't have a life insurance policy, your employer may pay you a sum of money in the event of your untimely death. The amount of this amount varies from employer to employer, but is generally around four times your annual salary.

If you don't have a mortgage or don't have many dependents, this coverage can be very comprehensive and you may not need additional life insurance protection. Remember that if you change jobs or become self-employed, you may lose this benefit.

Mortgage and other debts

Often when a policy is drawn up it will start with the size of your mortgage and any other debts you owe and look to pay them off in the event of your death. Generally speaking, debt decreases over time as you pay it off, which is why insurers have come up with policies such as Decreasing Life Insurance, which alsoreducewith time.

How much does life insurance cover?

A general rule of thumb is to cover 10 times the main breadwinner's income; However, this is just a guide and everyone's circumstances will be different. This may seem like a lot of money, but you should keep in mind that inflation will reduce the amount of any payments over time.

The quotes you receive for life insurance vary dramatically depending on how much coverage you want. Therefore, when comparing life insurance companies and policies, it is vital to always use the same details of how much coverage you would like and for how long.

What is the average cost of life insurance?

Life insurance costs an average of £10 per month based on quotes we received in April 2020, for a 36 year old male, with a clean medical history, a non-smoker and a light drinker.

The prices you receive will vary based on your own circumstances, such as your age, any pre-existing medical conditions you may have, and also whether you smoke.

Adding critical illness coverage to the policy will also increase the cost of the policy, often as much as the cost of the original policy.

The good thing about life insurance is that most premiums are fixed and monthly costs never increase.

It always pays to do some research when shopping for life insurance, as it will likely be a one-time purchase that will stay with you for most of your adult life.

types of life insurance

There are several types of life insurance and therefore it is important not only to buy the cheapest option, but also to find the type of insurance that is right for you.

Here is a list of the main types of life insurance, all of which we explore in more detail in this article.

• level life insurance
• Refusing Term Life Insurance
• Life insurance over 50
• whole life insurance
• funeral cloak
• Life insurance with coverage for serious illnesses

Tier versus decline term life insurance

The main difference between leveled and declining term life insurance policies is what they pay out if you die while the policy is active.

level life insurance

Level term life insurance pays the same pre-specified fixed amount of money if you die, regardless of whether you die at the beginning or end of the policy term. Coverage remains the same throughout the life of the policy and premiums also remain the same. Long-term life insurance is often a good option for those looking to cover interest-only mortgages that are not covered by an investment vehicle or endowment policy.

UK comparison sites often use capped term insurance as the basis for their quotes, but this is not always the best way to keep costs low.

Refusing Term Life Insurance

Declining term life insurance is similar to leveled term life insurance in that the premiums tend to stay the same throughout the term of the policy. The difference, however, is that as life insurance declines, the amount of coverage decreases over the life of the policy. Which means that if you die at the end of the policy, the lump sum amount of money will be significantly less than if you died at the beginning.

This type of policy is often used to cover debt, such as a down payment mortgage, since the outstanding balance will decrease over time.

Turning down life insurance is a great way to get a cheaper policy, assuming you understand that coverage will decrease over time. If you want to get life insurance to cover your mortgage or other debt, this is a great option. In addition to providing mortgage coverage, this type of policy can also be useful for estate tax planning.

How much does long term life insurance cost?

We received quotes in April 2020 for a long term policy for a 32 year old male, non-smoker, with a clean medical history, residing in London. The prices we received ranged from £9.50 a month to £17 a month.

As with any type of insurance, costs can vary significantly depending on your personal circumstances and, of course, your choice of policy. It's always worth doing some independent research and also talking to an independent expert, such as our FCA Approved Consultants, before you buy.

Generally speaking, life insurance costs increase with age; therefore, the younger you are when you buy a policy, the cheaper it will be over the term. If you have an illness or are a smoker, you can expect your life insurance premiums to be higher.

The best thing about life insurance is that getting quotes is usually quick and easy, so you can compare costs andbenefitsfrom different providers. Keep in mind that comparison sites tend to be pretty sparse in terms of information; therefore, go directly to the suppliers or speak with alife insurance brokerboth are sensible choices.

Life insurance for people over 50

Life insurance 50+, also known as “lifetime protection”, is a specific type of policy designed for people between the ages of 50 and 80. Instead of the usual health interviews and doctor questions, everyone between the ages of 50 and 80 is guaranteed acceptance. It is for this reason that 50+ life insurance is also known as “non-medical life insurance”.

With 50+ life insurance, premiums are usually fixed and stop at age 85 or 90, with coverage continuing for the life of the holder.

One thing to keep in mind is that 50+ life insurance generally has a qualifying period, between 12 and 24 months, and if you die during that initial period, your premiums can be refunded without any cash being paid. Of course, all life insurance companies have their own rules, so be sure to read the fine print before committing.

How much does life insurance cost for people over 50?

You can get over 50 life insurance for just £7, but remember you won't get very large cover for this; so if you want more coverage, you can expect to pay more. While you are guaranteed to be accepted for "no medical expenses" life insurance, costs can still vary based on your age and the amount of coverage you need.

whole life insurance

Whole life insurance provides coverage for your entire life, as the name suggests. As with other insurance, you pay the premium every month, and when you die, the policy pays a fixed amount.

With whole life policies, the insurer invests your premiums into a life fund that spreads your investment across stocks, bonds, property and cash. When you die, you use that fund to pay your sum of money.

Whole life insurance: pros and cons

The significant benefit of lifetime coverage is that you are guaranteed a payout because the policy lasts your entire life.

However, it is important to remember that your coverage is linked to the performance of the insurer's investments, and if this fund performs poorly, you may be asked to increase your premiums while still having the same level of coverage.

2016 cuts to cover

In 2016, the Financial Ombudsman received thousands of complaints about whole life insurance policies. Mostly, these complaints were due to companies drastically reducing the coverage levels offered by their plans, while requiring customers to pay the same premiums. This is because premiums and insured capital are revised after 10, 15 and 20 years.

Many customers who had lifetime policies felt they were not adequately informed about the revisions, and thousands were understandably upset when they received letters informing them of coverage cuts.

At that time, theTelegraphspoke to a customer whose life and critical illness cover was reduced from £113,500 to £36,950 despite having paid Sun Life of Canada premiums for over 20 years.

As you can see, it's extremely important to understand how life insurance works before you buy it, so talk to potential insurers and seek independent advice before committing to a policy.

If you've been affected by a reduction in your coverage or an increase in your premiums, it may be worth looking at another provider to see if you can get better terms.

How much does whole life insurance cost?

It's possible to take out whole life insurance for as little as £10 a month, but many things, such as your age and medical history, will affect the price you pay. If you drink heavily, smoke, or have had health problems in the past, you can expect to pay more than that for your coverage.

Essentially, the greater the risk that you will die young, the more expensive the coverage will be. Women tend to pay less as they often live longer.

The total cost of a policy also depends on whether payments stop at a certain age or continue indefinitely. If you keep paying until you turn 100, for example, your coverage may come at a very high price.

Online price comparison sites don't always take this into account; therefore, click to read full policy details for each insurer.

Comparison between whole life insurance policies and long term life insurance policies

Most people who pay for life insurance choose a tier or descending insurance that runs for a set period of time. Term insurance is generally less expensive than life insurance and most people in old age have much less of a need to provide life cover for their loved ones.

The main reason people get lifetime coverage is to help lower their family's Inheritance Tax (IHT) bill. If, for example, you take out a lifetime coverage policy, you can write it into a trust and your beneficiaries will receive a tax-free sum of money that they can use to pay their estate tax bill.

Tax planning is a tricky area and we always recommend seeking expert advice on how to place life insurance in a trust fund.

Life insurance with coverage for serious illnesses

Many people choose to purchase critical illness coverage at the same time as a life insurance policy. Critical Illness pays a lump sum if you die, are terminally ill, or are diagnosed with a serious illness. As soon as one of these occurs, the policy ends and is paid out. Family life insurance with critical illness coverage provides this type of protection for several people in a family.

What do critical illness policies cover?

Critical illness insurance policies will cover any one of 35 specific illnesses and up to 150 for more comprehensive policies. In fact, the more you are willing to pay, the more illnesses the policy will cover.

What is covered and what is not covered also varies from provider to provider, so it is important to carefully review the list of conditions. For example, some providers may not cover easily curable forms of cancer. Likewise, minor heart attacks and strokes may not be considered serious enough to warrant paying out on a policy. Reading the fine print and exclusions in the policy will help you understand what is covered and what is not.

How much does critical illness coverage cost?

The costs of critical illness cover will depend on how likely you are to get sick, along with the number of illnesses you want covered. Many providers ask applicants to complete health questionnaires or have a checkup with a doctor before providing a policy. If you want to reduce the cost of your policy, you can do so by adopting a healthier lifestyle. Quitting smoking, reducing your weight and exercising frequently can reduce your premiums.

Key facts about critical illness coverage:

• Premiums are generally fixed for the entire term of the policy, but some have "revisable" premiums that reset regularly.
• There is no cash value on the policy. If you don't get sick and die within the policy term, you and your loved ones get nothing in return.
• Critical illness coverage is usually cheaper when purchased in conjunction with life insurance, but remember that the policy will only pay once. So if you become seriously ill and die, you'll get a payout when you're diagnosed, but your family won't get anything extra when you die.
• It is very important to be honest when filling out your forms and questionnaires and to complete them accurately and carefully. The better information you provide, the more likely the policy will pay out in the event of a claim.
• Like other forms of life insurance, your coverage will stop if you don't pay your premiums, so make sure it's affordable.

Top 10 critical illness insurance policies:

Here are the top 10 integrity-based critical illness policies:

• Aegon-personal protection

• Life AIG -YourLife Plan Critical Illness with Term Guarantee

• avi-Critical Illness +

• Connell -Critical illness coverage

• All country -Protect+ coverage for serious illnesses

• Legal and General -Multiple Protection

• Former Mutual Equity -Protect

• Royal London -Personal Menu Plan

• Scottish widows -Personal protection of Scottish widows

• VitalityLife -Primary or complete coverage of VitalityLife

Funeral Coverage

Our own funerals aren't something we talk about often, but they can be expensive, so it's wise to make some preparations for yours. Life insurance that specifically covers the cost of your funeral can be a simple way to ensure that there is at least no financial stress related to your death.

Here are some of your options:

whole life insurance policies

Whole life insurance policies are a good option, but be aware that they may take some time to pay off in the event of your death.

funeral plan

Another option is to take out a funeral plan that covers the cost of your funeral; just be sure to check what is covered and what is and is not included.

Pay from your property

If you plan to have your family use their savings to pay for the funeral, make sure the money is in a joint account that a family member has access to.

For more information on funeral plans, check out this helpful guide from Bought by Many.

List of UK life insurers:

• royal london
• Liverpool Vitória (LV)
• Beagle Run
• sun life
• Mail
• Zurich
• Scottish widows
• friends life
• Direct line
• barclays
• HSBC
• halifax
• axa
• national

other suppliers

• bupa
• AA
• life in the abbey
• age concern
• UK age
• Allianz
• Bench from Ireland
• Cavendish
• church
• Citibank
• Clydesdale
• All over the country
• Cove
• straight life
• Direct line
• extreme sledding
• Compromise
• for sure
• loyalty
• Forest ranger
• guardian
• L&G
• London life
• Macmillan
• Marks and Spencer
• metrobanco
• NFU
• old mutual
• A family
• excellent
• mutual police
• RBS
• Reassure
• so real
• friendly scottish
• shepherds
• saint andre
• stay safe
• alliance of the sun
• Swinton
• TSB
• unison
• unite union
• wesleyano
• yorkshire
• your life