When it comes to ensuring that your family is taken care of in the event of your premature death, life insurance is invaluable. It’s important to recognise how life insurance can help protect your financial interests and those of your loved ones.

Life insurance provides a cash payment, known as a death benefit, which may be used to cover costs such as paying off a mortgage or other debts and funeral expenses. It can also provide a financial cushion to help your family maintain their lifestyle after you’re gone. Ultimately, it provides peace of mind knowing that loved ones will be financially supported.


The cost of life insurance can vary due to different factors and will typically include the amount of coverage, policy type, age and health. The higher the coverage amount, the higher the monthly premiums. The policy type can also impact the cost, as term life insurance only covers a specific time frame while whole-of-life insurance does not have an expiry date.

Age can be a key factor, with older individuals often having higher premiums. Health also plays a significant role in determining premiums, with healthier individuals generally having lower premiums as they pose less of a risk to the insurer.


Insurers may review medical records, ask for basic health information, or require a medical exam to assess an individual’s risk and consider an individual’s family health history when calculating the cost of life insurance.

If an individual’s family has a history of health conditions such as heart attacks, strokes or diabetes, they may be deemed as more vulnerable to these conditions and thus end up paying higher premiums.


Habits and lifestyle can also impact premiums, with insurers wanting to know about habits such as alcohol consumption or smoking. Occupational hazards also come into play, with some occupations deemed as more dangerous than others, such as those in construction, the armed forces or emergency services.

Finally, insurers may ask about hobbies outside of work, especially those that are deemed as dangerous or pose a risk to the individual’s health, such as rock climbing or extreme sports. The insurer assesses an individual’s lifestyle and hobbies to determine the risk of future claims under the policy.


Sustaining the future of your loved ones after you are gone is advisable. What if the unthinkable happened to you? Life insurance is there to ensure the life you’ve built together goes on. With the rising costs of living and less disposable income for many, life insurance could be more important than ever.

To discuss any of the issues raised in this article, please contact us. Further information can also be found at gov.uk.

Personal circumstances differ and not all of this information is applicable to every client and/or their business, this information is general in nature and should not be relied upon without seeking specific professional financial advice.

The Financial Conduct Authority (FCA) does not regulate tax advice, estate planning, trusts or will writing.

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