What is life insurance and how does it work?
Life insurance pays a lump sum, or sometimes a regular income, to the people you choose if you die while the policy is in force. You pay a monthly or annual premium. The amount of cover, how long it lasts and how the premium is set are agreed when you take it out and shown in your policy schedule.
Term and whole-of-life
Term insurance covers a set period, such as the length of a mortgage. Whole-of-life cover lasts for the rest of your life and pays out whenever you die.
Who it is for
It is most useful if someone relies on your income or would have to repay debts, such as a mortgage, if you died.
What affects the price
Your age, health, smoking status, the amount of cover and the length of the term.
This article is general information about UK protection insurance, not personalised financial advice. Policy terms vary between insurers and products, so always check your own policy documents.
Last updated 27 October 2026