Our life insurance comparison guide helps you choose the best policy to keep your loved ones financially secure when you’re gone. Compare options like term and whole life, plus extra features such as critical illness cover.
Choosing the right policy isn’t one-size-fits-all. It depends on your life stage, family situation and financial needs. There are various kinds of life insurance plans. To find the best one for you, these are the things to think about:
Everyone’s needs are different. If you have a 20-year mortgage, a decreasing term policy may suit you best. Or, if you’re getting older and wish to leave a gift for your children or grandchildren, a ‘whole of life’ policy may be more appropriate.
Need help with life insurance comparison and understanding different life insurance types? Here, we outline the different kinds of life insurance policies and what each one offers.
There are two main types of life insurance:
Explore these and other life cover considerations here. And compare Post Office life cover types to find the best fit for your needs.
If you are looking for term life insurance compare the following policies:
What is it for?
It pays out a cash lump sum to use as you or your loved ones see fit. This might be to pay bills or a mortgage if you have one.
Why might you need it?
Choose level cover for a policy that pays a fixed amount upon your death, helping your loved ones with debts and maintaining their lifestyle.
How does it work?
What is it for?
It’s mainly used to pay off a mortgage if you die.
Why might you need it?
Decreasing is one of the best life insurance types if you have mortgages or loans. Choosing it protects your family from the responsibility of that debt and finding the income to cover it. It means they can continue to have a home without pressure or having to sell or downsize.
How does it work?
What is it for?
It helps provide for your loved ones and protects the money you leave behind from losing value due to inflation.
Why might you need it?
As prices rise, increasing cover ensures the cash amount paid out if you die increases each year, helping your family manage living costs.
How does it work?
You can skip the annual increase if you prefer, meaning neither the cash payout nor the monthly premium will rise. If you skip this for three consecutive years your policy will switch to level cover and no further automatic increases will apply.
One way to understand the difference in what these types of term life cover would pay out is to see it. So here's an example showing how a payout amount worth £100,000 today would change over time.
Whole of life insurance covers you for your entire life. You pay into the policy and when you pass away, the insurer pays your loved ones, giving you peace of mind without needing to renew. This type of life insurance cover is called "life assurance," it's usually more expensive than term life insurance for the same payout as you don't define how long you want the cover for.
Cheaper whole of life options may cover shorter periods with smaller payouts. Like Post Office Over 50s Life Cover, which provides up to £10,000 of cover. Acceptance is guaranteed for UK residents aged 50-80.
Here are some other kinds of life insurance products that could be beneficial to you and your loved ones.
Joint life insurance
Joint life insurance protects you and your partner. It pays out if one of you dies, ensuring your family is taken care of. But remember, after a claim the surviving partner won’t be covered anymore and will need their own policy.
Post Office offers joint policies with one premium payment. These only pay out once.
Two single policies protect each policyholder separately but will mean paying two premiums each month.
Critical illness cover (at extra cost)
Critical illness cover pays a lump sum if you become seriously ill. This can help with expenses like medical bills or home modifications.
The payout can be a percentage or a set amount, depending on the insurer. If you make a claim for critical illness, that part of the cover will end but the main policy will continue.
You usually need to buy this cover when you take out a life insurance policy, so check what illnesses are included and for how long.
Terminal illness cover
Terminal illness cover pays a lump sum if you’re diagnosed with an illness that will likely lead to death within a year. This cover can ease financial worries during a difficult time for you and your loved ones.
Terminal illness cover explained
Children's cover (at extra cost)
Children’s cover pays out if an insured child becomes seriously ill, usually as a lump sum. This can help with expenses like taking time off work to care for them.
The payout can be a percentage or a set amount. If you make a children’s cover claim, that part of the cover will end but the main policy will continue.
This cover must be bought at the same time as the life insurance policy. Make sure you know what’s covered and for how long.
When you buy Post Office Life Insurance, you’ll also get a special reward. Choose a gift card from a choice of retailers or an unforgettable experience by getting a quote online or by phoning 0330 123 3921^.
† Qualifying period, minimum premiums and terms and conditions apply
† Qualifying period, minimum premiums and terms and conditions apply
The type of life insurance you need will depend on your age, health, lifestyle, whether you have a mortgage, and whether you have dependents. Everyone’s situation is different. Consider how much cover you need (whether you need cover until you die or cover while you have a mortgage).
The main difference between term life and whole life is the policy period. Term life covers a specific period (you choose how long), while whole life gives you lifelong coverage and guarantees a payout to your loved ones whenever you die.
This depends on your personal circumstances. Whole life policies are best if you want a guaranteed payout, while term life may be better if you want lower monthly costs and enough cover for things like your mortgage. If you’re looking for a large payout, remember this is determined by the terms of a policy, not the type of policy.
If you're looking for a policy that can build a cash value over time, you will need a permanent policy, such as whole life. Some providers may offer for your policy to be borrowed against, giving you flexible assets. Should you need to, you can take out a loan with no credit check or income requirements. Then your death benefit will be reduced by the loan amount (plus any accrued interest). Always check with your provider for detailed information.
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Your family is unique. Protecting them from life’s uncertainties is important. Life insurance offers a way to provide financial security for your loved ones if something happens to you.
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Post Office Over 50s Life Cover is underwritten by Aviva Life & Pensions UK Limited and jointly administered by Neilson Financial Services Limited and Aviva Life & Pensions UK Limited. If you buy Post Office Over 50s Life Cover in a Post Office branch, it is arranged and sold by Post Office Limited and Post Office Management Services Limited. If you buy Post Office Over 50s Life Cover over the telephone or online via the Post Office website, it is arranged and sold by Neilson Financial Services Limited, following an introduction by Post Office Limited. If you buy Post Office Over 50s Life Cover online via a price comparison website, it is arranged and sold by the firm that provides the price comparison website services.
Post Office Limited is an appointed representative of Post Office Management Services Limited which is authorised and regulated by the Financial Conduct Authority, FRN 630318. Registered in England and Wales. Registered numbers 2154540 and 08459718 respectively. Registered office: 100 Wood Street, London, EC2V 7ER.
Post Office Life Insurance is underwritten and administered by Scottish Friendly Assurance Society Limited. Neilson Financial Services Limited assist in the administration. If you buy Post Office Life Insurance over the telephone or online via the Post Office website, it is arranged and sold by Neilson Financial Services Limited, following an introduction by Post Office Limited. If you buy Post Office Life Insurance online via a price comparison website, it is arranged and sold by the firm that provides the price comparison website services.
Post Office Limited is an appointed representative of Post Office Management Services Limited which is authorised and regulated by the Financial Conduct Authority, FRN 630318. Registered in England and Wales. Registered numbers 2154540 and 08459718 respectively. Registered office: 100 Wood Street, London, EC2V 7ER.
†Gift card or Experience offer ends 30 April 2027. Minimum premiums and 180-day qualifying period applies.
* Restrictions apply, see amazon.co.uk/gc-legal
Post Office Life Insurance is for customers who are UK residents aged 18-70 at the start of the policy. The minimum term is 5 years and cover must end before your 90th birthday.
We won’t pay a claim if you don’t keep your payments up to date as you will no longer be covered under the policy. If you don’t tell us something or give us incorrect answers to our application questions that affects your cover, we may reduce the amount we pay for a claim or at worst cancel your cover and not refund your monthly payments.
^ Opening Hours: Monday to Friday: 9am - 8pm, Saturday: 9am - 5pm, closed on Sundays and bank holidays. Call charges: Calls to 03 numbers will cost no more than calling a standard UK number starting with 01 or 02 from your fixed line or mobile and may be included in your call package. Calls may be monitored or recorded for training and compliance purposes.