Do I need life insurance?
Not everyone needs life insurance, but if your children, partner, or other relatives depend on you financially, taking out life insurance could be worth it to help provide for your family in the event of your death. Life insurance is particularly valuable if you have a mortgage, outstanding debts, or dependents who would struggle without your income.
Life insurance can provide peace of mind for people with children, partners, or spouses that depend on them financially, as well as people with a mortgage on the family home. The payout from a life insurance policy can help your loved ones manage any outstanding debts and keep up with the monthly bills, childcare costs, and mortgage payments.
You might want to consider life insurance if you are a parent, homeowner, primary earner, have debts that would pass to others, or simply want to leave money for funeral costs and final expenses.
Is life insurance worth it?
Whether life insurance is worth it depends on who relies on you, your existing cover and what you can afford. A suitable policy can help loved ones with bills, housing costs and other needs if you die while covered.
Life insurance is particularly worthwhile if you have dependents, a mortgage, or other financial obligations that would burden your family. Even if you have savings, life insurance can provide additional security and ensure those savings aren't depleted by unexpected costs.
How does life insurance work?
The agreement
Life insurance works by providing financial protection for your loved ones. You pay a regular premium to the insurance company, and in return, they promise to pay a lump sum to your beneficiaries if you die during the policy term. The amount paid out depends on the level of cover you choose when you take out the policy.
Your application
When you apply for life insurance, you'll answer questions about your age, health, lifestyle, and the amount of cover you need. The insurer uses this information to calculate your premium. Once your policy is active, you pay your premiums monthly or annually, and your cover remains in place for the agreed term.
Making a claim
If you pass away while your life insurance policy is active, your beneficiaries contact the insurer to make a claim. After providing the necessary documents, the insurer pays out the agreed sum, helping your family manage financially during a difficult time.
Why get life insurance with Utterlycovered?
Clear, human guidance
No scripts, no sales pressure, no confusing jargon.
Advice you can trust
Our protection team recommends cover suited to your needs and budget.
Clear comparisons
We explain the differences between insurers, exclusions, and optional extras.
Built for busy families
Fast callbacks. Quick applications. No wasted time.
What life insurance usually covers
Usually covered
- Most illnesses that lead to death during the policy term
- Accidents
- Terminal illness, if included and the insurer's policy definition is met
- Pre-declared medical conditions that the insurer has accepted
Common exclusions
- Non-disclosure of relevant information
- Self harm within the initial exclusion period
- Restrictions relating to alcohol or drugs, where specified in the policy
- Death after the policy has ended
- Activities or events the insurer has excluded
Types of life insurance
Level term life insurance
A fixed lump sum if you die within the policy term.
Best for: Families who want consistent protection for childcare, bills, or income.
Decreasing term life insurance
The payout reduces over time, usually in line with a repayment mortgage.
Best for: Homeowners who want to clear the mortgage balance.
Joint life insurance
One policy that covers two people. Usually pays out on the first death.
Compare with separate policies to see which fits your needs.
Over 50s life insurance
Guaranteed acceptance for eligible ages. Fixed payout.
Often used for funeral costs.
Life insurance with a medical condition
Having a pre-existing condition does not automatically mean you cannot get life insurance. Insurers assess each application individually and may offer different prices, terms or exclusions. Answer health questions accurately so the insurer can assess your application fairly. This is where advice can help most: an adviser can explain your options and help you compare insurers.
Talk to an adviserHow much life insurance could you get?
There is no single cover amount for a given monthly budget. The cover available depends on your age, health, lifestyle, policy type and term. Speak to an adviser for a personalised quote.
What affects life insurance premiums?
Age and health
Lifestyle and smoking status
Policy type
Length of cover
Amount of cover
Medical history
Tip: Applying younger is normally the simplest way to secure a lower premium.
How much life insurance do I need?
Start with the essentials:
Mortgage balance
Household bills
Outstanding debts
Childcare & education
Everyday living
Funeral costs
Income replacement
Start with your needs
Add up the costs your loved ones would need to meet, then consider existing savings and cover through work.
How much life insurance
could you get?
Your needs depend on your household costs, debts and existing protection. Use the calculator to work through your own estimates.
What would they need covered?
Enter your own estimates. Leave anything that doesn’t apply blank.
Your home & commitments
Balance and years remaining
Rising utilities and essentials
Loans, credit cards
Family & day-to-day
Nursery, school, university
Food, transport, clothing
Estate expenses
Looking ahead
E.g., 3 to 5 years of your net income
Remember: This is a guide only, not financial advice. The final amount should be adjusted for any existing savings, employer/state benefits, and your family's specific situation.
Quick rule of thumb: Many families start with 10 to 15 times annual net income, then adjust using the calculator above for accuracy.
How we compare to traditional insurers
| Category | Traditional insurers | UtterlyCovered |
|---|---|---|
| Conversation | Often scripted | Human guidance with no pressure |
| Approach | Static rate tables | Advice matched to your needs and budget |
| Complexity | Industry jargon | Plain English with simple explanations |
| Speed | Long queues and call transfers | Fast callbacks and short calls |
| Personalisation | One size fits all | Recommendations tailored to your family situation |
| Support at claim time | Handled by insurer | We help your family understand each step |
| Buying experience | Sales led | Clarity led |
Our life insurance claims process
We guide your family through every step of the life insurance claim
Contact the insurer
Your beneficiaries or executor gets in touch with the insurance company to start the claim.
Provide documents
They submit the death certificate and policy details to verify the claim.
Quick processing
The insurer reviews the claim and may ask for more information. Timing varies.
We're here to help
We remain available to support your family and explain each step of the process.
Life insurance, tax and trusts
Writing a policy in trust means appointing trustees to manage the payout for your chosen beneficiaries. Depending on your circumstances and how the trust is set up, this may affect whether the payout forms part of your estate for inheritance tax. It does not guarantee a tax-free outcome. Trusts have legal and tax implications, so seek professional advice before setting one up.
Frequently asked questions
Answers to the questions people ask us about life cover.
We do not guarantee a specific premium. Eligibility and underwriting vary by insurer. Always read policy documents and seek professional advice on trusts or tax matters.
Ready to get a life insurance quote?
Start your life insurance quote online.
Important service information
This is an advised service
One of our advisers will talk through your circumstances and give you a personal recommendation based on your needs and budget. We will explain why a policy suits you before you decide to go ahead.
Understanding your demands and needs
Before we arrange any cover, we will ask about your situation so we understand what you need the policy to do. Any cover we put forward is based on the information you give us, so please make sure it is accurate and complete.