Life insurance FAQs and policy documents

Commonly terms and phrases

Cover amount

The amount you want to leave your loved ones if you die, or the amount you want to receive if you become terminally or critically ill.

Policy  term

The length of time for which you, the policy holder, are covered if you die or are diagnosed with a terminal or critical illness.

Terminal illness

Being diagnosed with a terminal illness that's expected lead to death with 12 months. This is determined by your hospital and verified by our medical team.

Monthly premium

The amount of money you pay every month. This is based on your personal circumstances (assessed during application), your cover amount and how long you want to be covered for. Your monthly payments will stay the same throughout the duration of the policy – unless you make any changes.

Quick quote

(company’s name) Simple Life Insurance calculates its starting price based on your age, smoking status, coverage amount, and duration. They offer a quick quote to estimate the cost for your needs, and around 80% of applicants receive the same price after applying. Let me know if you need more help.

Changing your policy

After purchasing your policy, your situation may change. If you need more coverage, you may be able to increase your coverage amount without re-applying. However, there may be eligibility requirements and restrictions.


Underwriting is the process of assessing an insurance application to determine the risk of death or terminal or critical illness. It involves reviewing your medical history and lifestyle, as well as considering your age. If you are eligible for life insurance, the underwriter will determine the premium you need to pay based on this information.

Things you need to know

The amount you pay for your insurance may be more than the pay-out amount, depending on when you pass away.

* The cost of your insurance and the coverage amount will be determined by your age and smoking history at the time of purchasing the policy.

* The value of money received in the future will decrease due to inflation.

* If you fail to pay your premium within 30 days, your insurance will be cancelled, unless you are eligible for the Protected Insurance Amount.

* The insurance you're buying to cover funeral expenses might not offer sufficient funds to cover the entire cost.

Q1 what is life insurance?

Life insurance pays out to your family or dependents if you pass away or become terminally ill while the policy is active. The money can be used to support them financially and help manage their future. It could be used for:

* The pay-out can provide financial security, pay off mortgages/funeral costs, or cover day-to-day living expenses.

* Life insurance is not an investment product and has no cash value.

* The pay-out is only made in the event of death or terminal illness, as specified by the policy.

Q2 what is critical illness cover (CIC)?

Life insurance policies may offer optional critical illness coverage for an additional cost. This coverage provides a pay-out if you are diagnosed with a particular illness that could have a significant impact on your life, such as certain types of cancer, a heart attack, or a stroke. To be eligible for this coverage, you must be at least 18 years old and a resident of the UK.

Q3 What is terminal illness cover?

Our life insurance plan covers terminal illness. If you're diagnosed with a terminal illness that meets our policy definitions and aren't expected to live longer than 12 months during your policy term, we'll pay out. However, if we pay out for a terminal illness, your life insurance policy will end, and no further claims will be paid. For more information, please refer to the policy documents.

Q4 Can I have several life insurance policies at the same time?

Yes, you can have multiple life insurance policies from different providers. When applying for a new policy, you may be asked if you already have life insurance due to potential restrictions.

Q5 How does life insurance work?

When purchasing a life insurance policy, you agree to pay a monthly premium. If you pass away or are diagnosed with a terminal illness, a sum of money is paid out to your family. The pay-out amount and monthly premium depend on your personal circumstances and the level of coverage you choose. You can choose the amount of life insurance you want, and your premium will depend on your needs and circumstances. The coverage amount can vary depending on what you want to protect, such as paying off your mortgage or leaving a lump sum for your dependents. The more coverage and length of time you need, the higher your monthly premium will be. To estimate how much insurance you need, you can use our cover calculator.

Q6 How long should my life insurance be for?

When you purchase a life insurance policy, you can choose a term policy that lasts for a fixed amount of time. The duration of the policy will depend on what you want to cover. For example, if you have a mortgage, you may want the policy to last as long as your repayments. If you have children, you might want the policy pay-out to provide financial support for them until they finish school, turn 18, finish university, or become financially independent. Your age will also likely influence your decision.

Q7 Who receives the life insurance pay out under this policy?

This will depend on how you set up the policy. In the event of your death, the payment will normally go to:

* Your spouse/partner if you have a joint policy with them.

* A trust, if you've specified a trust for your life insurance policy, the payment will be distributed by the trustees according to your wishes. You have the flexibility to choose who receives the payment (known as beneficiaries) and who will be responsible for distributing the money (known as trustees).

Q8 What does trust mean in life insurance?

If you put your life insurance policy in a trust, your beneficiaries can receive the pay-out faster and may be exempt from inheritance tax. It's a legal agreement that lets you choose the beneficiaries and trustees with the help of a financial or tax expert. If you don't set up a trust, you can still specify in your will who should receive the pay-out, but it may not have the same tax advantages. If the covered person gets critically or terminally ill, they usually receive the pay-out.

Q9 Who can apply for life insurance?

UK residents aged between 18 and 77 who meet the insurer's health and lifestyle requirements are eligible to apply for life insurance.

Q10 Can I cancel my life insurance at any time?

You can cancel your life insurance policy anytime, but you'll only get a refund if you cancel within 30 days from the start of the policy. If you cancel after 30 days, you won't receive a refund but won't have to make future payments. During the 30-day cooling-off period, you can cancel and receive a refund. Cancelling your policy means you won't be able to make a claim, and it has no cash-in value. If you want to cancel, contact us, and we'll make the process easy.

Q11 How is my life insurance premium calculated?

We will give you an approximate price for your life insurance policy based on several factors, including your age, coverage amount, term length, policy type, and smoking status. However, to determine the final cost, we will require more specific information about your health and lifestyle. The premium may increase depending on your answers. In some cases, we may need to ask your doctor for additional information. After we have all the necessary details, we will set a policy start date, which may coincide with the start date of your mortgage.

Q12 What affects the cost of life insurance?

Several factors influence the cost of life insurance, such as your health, age, and smoking status. The rates of death and sickness throughout the policy duration are among the significant factors that impact the cost.

Q13 What are the different types of life insurance?

Because everyone is different, with different budgets, circumstances and priorities, we offer a range of life insurance policies to help you find cover that fits your needs. The main types of life cover we offer are:

  • *Level term life insurance offers a fixed coverage amount and premium payment for a specified duration chosen by the policyholder. The policy pays out a lump sum in the   event of the policyholder's death while still covered by the policy..
  • *Decreasing term life insurance is tailored to help repay a mortgage or other debt. Coverage decreases over time as the debt is paid off, resulting in lower premiums compared to level term policies.
  • The policy pays out a lump sum if the policyholder passes away or is diagnosed with a terminal illness that meets the insurer's definition and is not expected to live longer than 12 months during the policy term. The policy has no cash value and only pays out once.
  • *Whole of life insurance covers the policyholder for their entire life and pays out upon their death. While policyholders can choose their desired coverage amount, premiums tend to be higher compared to term policies due to the lifelong coverage.
  • *Over 50s life insurance is a type of whole of life policy that guarantees a pay-out to beneficiaries upon the policyholder's death. Premiums are fixed for life and coverage continues even after 30 years of paying or reaching 90. No medical exam is required, but a waiting period exists, and the policy cannot be taken out jointly. It aims to provide peace of mind by covering any outstanding expenses or debts for loved ones.
  • If you want to learn more about them, our guide on different types of life insurance policies can provide you with detailed information.

Q14 what is the difference between life insurance and over 50s life insurance?

Life insurance and over 50s life insurance differ in their coverage duration and eligibility requirements. Life insurance is a term policy that covers a specific period, usually until the end of the policy term, and is available for individuals between the ages of 18 and 77. In contrast, over 50s life insurance is a whole-of-life policy that covers individuals between the ages of 50 and 80 for the rest of their life. With over 50s life insurance, premiums are fixed for life without the need for a medical or health check, and once you have had the policy for 30 years or reach your 90th birthday, you will no longer pay premiums, but your coverage will continue. However, over 50s life insurance cannot be taken out as a joint policy.

Q15 what is life insurance with increasing cover?

Life insurance policies with increasing cover adjust coverage and premiums annually based on inflation measured by the Consumer Price Index (CPI). Coverage can increase up to 10%, and premiums up to 15%. If you decline the increase or the CPI doesn't change, your coverage and premiums stay the same.

Q16 If I do not pay my premiums, what will happen?

If you do not make premium payments, your policy will end on its own, and you will not receive any surrender value.

Q17 If I do not get a medical, can I still get life insurance?

Medical requirements for life insurance depend on factors such as age, coverage amount, and health information provided in the application. Most applicants do not require a medical exam, but larger coverage amounts may require one. Each application is reviewed individually, and a medical exam does not necessarily mean the application will be rejected.

Q18 If I receive a life insurance pay out, Will I need to pay tax on it?

Life insurance pay-outs are not subject to capital gains or income tax. However, inheritance tax may apply unless the funds are placed in a trust.