UK Life Insurance Calculator

Tally: outstanding mortgage + other debts + 10× annual net income for a parent with dependants + final expenses (~£5k) + any specific goals (university fees ~£60k/child at a UK university living at home; more if moving). Subtract existing death-in-service (typically 3-4× salary) and meaningful savings. For a 35-year-old earning £55k with a £275k mortgage and two children the maths typically points to £800k-£1.1M of cover.

Level term keeps the sum insured flat — right for income replacement or a legacy gift. Decreasing term falls in line with a capital-and-interest mortgage — the cheapest way to protect a repayment mortgage specifically. Family Income Benefit (FIB) pays a monthly tax-free income for the remainder of the term — often the best value per £ for replacing a parent's salary because the insurer is paying out less as the term runs down.

Almost always yes. A policy in trust sits outside your estate on death, so the payout bypasses probate (money in weeks, not months) and is not counted for Inheritance Tax. Most insurers provide free discretionary or bare trust forms online that take 10 minutes to complete. For any household with net assets approaching £325k (£500k with RNRB), writing in trust can save beneficiaries tens of thousands of pounds.

Healthy non-smoker, £250k level term 25 years: age 30 ~£8/mo, age 40 ~£15/mo, age 50 ~£38/mo, age 60 ~£115/mo. Smokers typically pay ~2.2× these rates; women ~15% cheaper than men. Premiums are guaranteed level for the term — the single biggest lever in pricing is your age at application.

For most households, term. Whole-of-life guarantees a payout whenever you die and is used mainly for IHT liability planning on estates expected to exceed the nil-rate bands (£325k + £175k RNRB each). Premiums are 7-15× more expensive than term for the same sum insured. Consider it only if you have a durable IHT exposure or a lifelong dependant (e.g., a disabled adult child).

Most UK policies pay out for suicide after a 12- or 24-month exclusion period from policy start. After that, it is covered. Lying on the application (including about smoking, medical conditions, alcohol units, or risky hobbies) is the more common reason claims are denied — answer every question truthfully and keep records of the questions asked.

Two single-life policies usually win. A joint life first-death policy pays once, ends, and leaves the surviving partner needing fresh (older, more expensive) cover. Two single-life policies cost only ~10-15% more in total and both pay out on death — doubling the financial protection if both partners die (e.g., in an accident together) at little extra cost.