Life insurance is a type of financial protection that pays out a lump sum of money to your loved ones if you pass away while the policy is active. This money can be used to cover outstanding debts or expenses, such as mortgages, loans, credit cards, or funeral costs. Direct Line offers life insurance with flexible coverage options starting at £5 per month, allowing you to choose the level of protection that best suits your family's needs. It's wise to consider life insurance during significant life events, such as marriage, having children, purchasing a home, or retiring. You can purchase life insurance for yourself or for two people through a joint policy, but it only pays out once, and the policy ends afterward. Even if you have
pre-existing medical conditions, you can usually still obtain life insurance, but you'll need to disclose this information when applying, and a medical exam may be necessary, which the insurer will pay for. Your eligibility and policy costs depend on your individual circumstances.
Why is life insurance important?
If your partner or children rely on your income to maintain their standard of living, it is important to consider how they would cope financially if you were to pass away unexpectedly. You need to think about bills, mortgage payments, school fees, and other debts that your family would have to pay. Life insurance can provide financial protection for your loved ones if you were to pass away unexpectedly. This can relieve the anxiety and stress associated with worrying about how your family would manage financially in such a situation. With life insurance, you can concentrate on your daily activities and ambitions, knowing that your death will not have a severe financial impact on your loved ones. Furthermore, life insurance can help you plan for the future and give you a sense of stability. By considering your financial needs and aspirations over the long term, you can select a life insurance policy that meets your objectives and guarantees that you and your family will be taken care of, regardless of any unforeseen circumstances that may arise.
How does life insurance work?
Life insurance is a policy that you buy to protect your loved ones financially in the event of your death or if you're diagnosed with a terminal illness during the policy term. When you purchase a life insurance policy, you agree to pay a monthly fee, known as a premium, in exchange for a lump sum payment to your family. Our coverage is term life insurance, which pays out if you're diagnosed with a terminal illness as we define it and aren't expected to live more than 12 months. However, don't worry; it's not as scary as it sounds. You can pay your monthly premiums easily via direct debit, starting at just £5 per month. If the worst happens, your family will make a claim and, once approved, will receive the lump sum payment into a nominated bank account. This money could be used for anything, including mortgage repayment. The amount of the pay out and the premiums you'll pay depend on your personal circumstances, the type of policy you choose, and the level of coverage you desire. In addition to life insurance, you can also take out critical illness coverage. With this cover, a cash lump sum is paid to you if you're diagnosed with one of the listed critical illnesses during the policy term. If you're not familiar with life insurance terminology, you can always look it up in our glossary.
How long do I need cover for?
Consider how long your children will require your financial support or when your other half may retire. If you are over 50 and want coverage for the rest of your life rather than a set period of time, you should look into our over-50 life insurance.