Life insurance is not right for everyone, but it can be worth considering if another person would face financial difficulty after your death. These five common assumptions are useful prompts for reviewing your own circumstances, rather than reasons to buy a policy automatically.
1. “Life cover is too expensive”
Premiums depend on the amount and length of cover, your age, health, lifestyle and the insurer’s assessment. A quoted price for another person may not apply to you, so avoid relying on advertised “from” prices or old comparisons with subscriptions. Work out what support your dependants would need, consider your budget, and ask for an illustration based on your own circumstances.
2. “I’m healthy, so I don’t need it”
Life insurance is designed to provide financial support after a valid death claim, not to predict whether or when someone might die. The relevant question is whether anyone relies on your income or would need help meeting a mortgage, rent, childcare or other commitments if you died. Existing savings and workplace benefits may reduce the amount of separate cover you need.
3. “Insurers do not pay claims”
A life policy can pay a valid claim when its terms are met. It is not an unconditional guarantee: exclusions, the policy term, premiums and accurate answers to the insurer’s questions matter. Read the policy information carefully and ask about anything you do not understand before applying. If you already hold cover, keep your details and beneficiary arrangements under review.
4. “A past medical condition means I cannot apply”
A medical history does not automatically mean cover is unavailable. An insurer may request more information, offer different terms, charge a different premium or decline an application. Outcomes vary by condition, individual circumstances, policy and insurer. Give complete and accurate answers to the questions asked; an adviser can help you understand the application process without promising acceptance.
5. “My workplace cover is enough”
Death-in-service or group life benefits can be valuable, but check who is covered, the benefit amount, when cover ends and who would receive a payout. It may not match your mortgage term or your family’s longer-term needs, and employment changes can affect eligibility. Compare it with your commitments before deciding whether separate cover is useful.
Make an informed choice
Start with the people and financial commitments you want to protect, then review existing cover and the cost of any additional policy. The Life Insurance Planning Guide can help you frame those questions. You can also read the Life Insurance guide or start a no-obligation adviser enquiry. The enquiry does not provide an instant online price; any cover and premium depend on the insurer’s assessment and policy terms.
For independent background, see MoneyHelper’s guide to life insurance.
