Life Insurance Cover Calculator (UK)
Calculate UK life insurance cover need based on mortgage, dependants' future financial requirements, and existing protection. Indicative only.
Life Insurance Cover Guide (UK)
How Much Cover Is Needed
Three components typically considered: debt clearance — clear mortgage + other debts so the family home is secure. Income replacement — typically 10× annual income for breadwinners with young dependants; less for older breadwinners with grown children. Or income-replacement multiple based on years until youngest child is 18-21. Future costs — university funding, ongoing childcare, family adjustment costs. Common rules of thumb: 'breadwinner with mortgage and young kids' often arrives at £400,000
Types of Life Insurance
Level term: same cover amount throughout the term. Most flexible — pays the full sum regardless of when in the term you die. Best when income replacement is the main goal. Decreasing term: cover reduces over time, tracking a repayment mortgage balance. Cheaper than level term. Specifically designed to clear a mortgage. Good fit for mortgage-only cover. Whole of life: pays out on death whenever it occurs (rather than just during a term). Much more expensive — for inheritance planning, business su
Writing in Trust
By default, life insurance payouts form part of your estate — potentially adding to your inheritance tax (IHT) liability and going through probate (delaying payment by months). Writing in trust: legal arrangement where the policy is held by trustees for named beneficiaries. Payout goes directly to beneficiaries, not through probate. Payout is OUTSIDE your estate for IHT purposes. Payment is much faster (often within weeks rather than months). Most UK insurers provide free trust deeds. Common for
Premium Drivers
Age — premiums roughly double every 10 years. Buying young saves substantially over a 25-30 year term. Smoking — non-smoker definition usually means no nicotine in 12 months. Premiums 50-100% higher for smokers. Health — disclosed medical conditions: high BP, diabetes, BMI 30+, cancer history all increase premium or cause exclusions. Occupation — most office occupations standard rate; manual trades, certain professions loaded. Hobbies — motorsports, climbing, diving, aviation can add loadings. S
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