How to Choose Life Insurance: A Practical UK Checklist

Choosing life insurance involves decisions about purpose, amount, duration, policy structure and affordability. Work through those decisions before selecting the lowest monthly premium.

Identify who would face a shortfall

Add outstanding borrowing and the family support needed over time, then allow for existing policies, accessible savings and reliable employer benefits. Include the cost of replacing unpaid childcare or caring work. Consider affordability and how long the need will last, rather than assuming a salary multiple suits everyone.

Choose a policy structure

A level term policy keeps the insured amount fixed for a chosen period. Decreasing term cover reduces under the policy’s schedule and is often considered for a repayment mortgage. Whole-of-life cover is designed to continue for life while its conditions are met; premiums may be guaranteed or reviewable, and surrender values depend on the contract. Critical illness cover is a separate benefit for conditions meeting stated definitions, not a payment for every serious diagnosis.

Check premiums over time

Confirm whether premiums are guaranteed or reviewable, whether benefits or premiums increase and whether the cover remains affordable. A fixed benefit can lose purchasing power through inflation. Guaranteed acceptance for an eligible over-50s plan does not mean every death is covered immediately.

Compare the final underwriting terms

An initial online quote is subject to underwriting. The insurer may request more information, change the premium or terms, postpone a decision or decline. Answer questions about health, medication, nicotine, occupation and activities accurately, including existing and pending cover when asked. Do not cancel an existing policy until any appropriate replacement is confirmed in force.

Check ownership and access to the benefit

Understand who owns the policy and receives the money, and whether a trust or other arrangement is appropriate. Do not assume a will and a policy nomination have the same effect. Legal and tax advice may be needed for the arrangements.

Keep a record of the decision

Read the illustration, policy wording, exclusions and service disclosures. Keep the documents and contact details accessible to the appropriate people. Revisit cover after relevant changes rather than replacing it automatically.

Further guidance

Use the policy comparison guide, term guidance and our trust guide.

Compare your options

You can compare life insurance quotes online and ask our advisers for help with the next step. Initial quotations are subject to the insurer assessing the application. Cover begins only when the insurer confirms the policy is in force; completing a form or receiving a quote does not start cover.

Updated October 2026. General information, not a personal recommendation or a quotation. Eligibility, exclusions, premiums and tax treatment depend on the policy and individual circumstances. Discount Life Cover is a trading style of My Key Finance Ltd, authorised and regulated by the FCA, FRN 628996.

Further information: MoneyHelper: life insurance.