COVERLIFE SERVICES
Personal Life Cover
Protect your loved ones with affordable, reliable life insurance designed to give your family financial security and peace of mind.
The Free Thing Almost Nobody Does
Most life policies are not written in trust, and it costs nothing to do it. Without a trust the payout belongs to your estate, which means it waits for probate, often for months, at the exact point your family needs money for the mortgage. It can also be counted for inheritance tax at forty per cent.
Put the same policy in trust and it pays the people you named, usually within weeks, and normally sits outside your estate entirely. The insurer provides the forms and there is no fee. It is the single highest-value five minutes in this whole product, and it is routinely skipped.
What To Check On Any Quote
- •Is it written in trust
- •Level, decreasing or whole of life
- •Guaranteed or reviewable premiums
- •One joint policy or two single ones
- •The term, against your youngest child's age
- •Whether critical illness is bolted on
What is Personal Life Cover?
Life insurance is a personal protection policy that provides a tax-free lump sum payout to your chosen beneficiaries if you pass away during the term of the policy. It's designed to give your family financial security and peace of mind at a difficult time.
Why is Life Insurance Important?
Life insurance helps ensure your loved ones are not left financially vulnerable. It can help:
Financial Security
Cover mortgage or rent payments and maintain your family's lifestyle
Education & Childcare
Fund childcare, school or university costs for your children
Debt Clearance
Clear outstanding debts or loans to protect your family's assets
Peace of Mind
Provide financial support during a time of loss
Types of Life Insurance
Level Term Life Insurance
Pays a fixed lump sum if you die during the policy term. Ideal for families wanting consistent protection over a set period.
Decreasing Term Life Insurance
Ideal for covering a repayment mortgage, as the payout reduces over time. Perfect if your debts decrease as you age.
Whole of Life Insurance
Covers you for your entire lifetime with a guaranteed payout. Provides permanent protection and can form part of your estate planning.
Key Benefits of Personal Life Cover
Financial Security
Financial security for your family and dependents with a guaranteed tax-free payout
Cover Large Expenses
Covers large expenses like mortgages or school fees to maintain living standards
Reduces Stress
Reduces financial stress at an already difficult time for your family
Peace of Mind
Offers reassurance that your loved ones will be taken care of financially
Protect Your Future
Don't leave your family's financial security to chance. With CoverLife's Personal Life Cover, you can have peace of mind knowing they'll be protected.
Level, Decreasing Or Whole Of Life
Decreasing cover falls roughly in step with a repayment mortgage and is the cheapest of the three. It suits one job: clearing the loan. If the money is also meant to replace your income or raise your children, it will be worth far less than you expect by the time it pays.
Level cover stays at the same amount for a fixed term. Whole of life has no end date and pays whenever you die, which makes it the expensive option and usually an inheritance tax tool rather than family protection. Most people with a mortgage and children want level cover over a set term, not the cheapest quote on the page.
One Joint Policy Or Two Single Ones
A joint life policy covering a couple almost always pays on the first death and then ends. The survivor is left with no cover, at an older age, possibly with a medical history that did not exist when the original policy was bought. Two single policies cost a little more and pay twice.
Joint cover still makes sense for some households, particularly where the sole purpose is clearing a jointly owned mortgage. It should be a decision though, not a default taken because it was the cheaper line on a comparison table.
Guaranteed Or Reviewable Premiums
A guaranteed premium is fixed for the life of the policy. A reviewable one starts lower and the insurer can raise it, typically from year five or ten and at intervals after that. Over a twenty-five year mortgage term the cheaper quote is frequently the more expensive policy, and the increases arrive when you are older and least able to switch.
Comparison sites rank on the first monthly figure, which is why reviewable premiums win those tables. Ask which you are being quoted before you compare anything else.
What It Costs
Life cover starts from around five pounds a month, subject to your age, health and lifestyle. That is the entry point across the mainstream UK market and it is what we can arrange, because we place the same insurers the comparison sites do rather than a restricted panel.
Age and smoking move the price more than anything else. Buying at thirty rather than forty can halve it for the same cover, and the premium is set at the age you start, so waiting is not free. Being straight about smoking, vaping, weight and alcohol at application is what makes the policy pay later, and underwriting happens then rather than at claim.
Cover that often goes with this
The gaps we most often find sitting next to this one.
- Critical illness coverMost life policies are sold with it bolted on, and the combined version pays only once. Worth understanding before you agree to it.
- Income protectionLife cover pays if you die. This pays if you cannot work, which is the far more likely event during a working life.
- Relevant life coverIf you are a salaried director, the same cover bought through the company is normally cheaper in real terms.
Common questions
How much life insurance do I need?+
A common starting point is enough to clear the mortgage and any other debt, plus a multiple of your income for the years your household would still need it. Ten times gross income is a rough industry rule of thumb, but it is only a starting point. The better question is what your family would actually have to pay for, and for how long, if your income stopped tomorrow.
Should life insurance be written in trust?+
Almost always, and it costs nothing. Without a trust the payout forms part of your estate, so it waits for probate and can be assessed for inheritance tax at forty per cent. Written in trust it pays your chosen beneficiaries directly, usually far faster, and normally sits outside the estate. The insurer supplies the forms.
Is it cheaper to get a joint life policy?+
Slightly, but it pays only once and then ends, leaving the survivor with no cover at an older age. Two single policies cost a little more and pay twice. Joint cover suits a jointly owned mortgage where that is the only purpose; it suits families less well.
How much is life insurance a month?+
From around five pounds a month, subject to your age, health and lifestyle. Age and smoker status move it more than anything else, and the premium is set at the age you take it out, so it is cheaper the earlier you start. The sum assured and the length of the term do the rest.
Does life insurance pay out for suicide?+
Most policies exclude suicide during the first twelve months, and pay normally after that. The exact period is in your wording. It is a standard term across the market rather than something unique to one insurer.
Do I have to declare smoking or vaping?+
Yes, and vaping counts. Insurers ask about nicotine in any form and test for it if there is a claim in the early years. Being straight about it costs you more in premium and is what makes the policy pay; being vague about it is what gets a claim argued over when your family cannot afford the argument.
What is the difference between level and decreasing life insurance?+
Decreasing cover reduces over time, roughly tracking a repayment mortgage, and is cheaper. Level cover stays at the same amount throughout the term. If the money is only ever going to clear the mortgage, decreasing is efficient. If it also needs to replace income or raise children, level is what you want.
Related reading
Guides from our team on the cover discussed on this page.
How Much Life Insurance Does a Family Actually Need?Calculate your family's life insurance needs by considering your financial obligations, lifestyle, and future plans. Explore different policies suitable for various family scenarios.3 min read
The Role of Life Insurance in Estate Planning for UK FamiliesLearn how life insurance plays a crucial role in estate planning for UK families, offering financial protection and facilitating efficient wealth transfer.4 min read