Our Pick Of The Best Life Insurance Companies 2024

Editor,  Contributor

Updated: Mar 07, 2024

It can be easy to take life for granted. But if you were no longer here, what would become of those you leave behind? Financially at least, the prospect can be improved by having the right life insurance policy in place.

But how do you find the best life insurance provider? We carried out some research with the help of our life insurance partner, Lifesearch, to answer that question for a healthy, single applicant, aged 30 (for 25 years worth of level term cover). Find full details in our methodology, below.

Why you can trust Forbes Advisor’s ratings

Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate product providers, so all companies are measured equally. You can read more about our editorial guidelines and the methodology for the ratings below.

  • Market-wide survey of leading life insurance companies
  • Rigorous assessment of policy features and cover options
  • Thorough analysis of pros and cons

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Best life cover of 2024

Quotemehappy.com (Aviva)

Quotemehappy.com (Aviva)
5.0
Our star ratings are based on a range of criteria and are determined solely by our editorial team. See our methodology for more information.

Level term monthly premium

£6.80

Customer service score*

74%

% of claims paid

99.4%

2022

Level term monthly premium

£6.80

Customer service score*

74%

% of claims paid

99.4%

2022

Why We Picked It

Paying out almost all of its life insurance claims, Quotemehappy.com (a trading name of Aviva) also offers one of the most competitive monthly premiums based on the criteria.

The policy, which pays out on death or terminal illness, can be put into trust.

It also offers a funeral pledge which, if there is a delay in the funds arriving, bridges the gap by paying at least £5,000 to the funeral director to help cover funeral expenses.

The insurer has a strong customer service score from Fairer Finance.

Key Features

•  99.4% of claims paid

•  Can be put into trust

•  Funeral pledge of at least £5,000

Legal & General

Legal & General
5.0
Our star ratings are based on a range of criteria and are determined solely by our editorial team. See our methodology for more information.

Level term monthly premium

£7.08

Customer service score*

74%

% of claims paid

97%

2022

Level term monthly premium

£7.08

Customer service score*

74%

% of claims paid

97%

2022

Why We Picked It

Legal & General has robust customer service scores and competitive monthly premiums which includes terminal illness (with a diagnosis of a 12-month or less life expectancy).

The policy can also be put into trust, while its ‘funeral pledge’ guarantees to pay out at least £5,000 to help with funeral expenses if there is a delay in paying the full amount.

However, the insurer aims to process claims within 5 working days.

Key Features

•  97% of claims paid

•  Can be put into trust

•  Funeral pledge of at least £5,000

Vitality

Vitality
4.5
Our star ratings are based on a range of criteria and are determined solely by our editorial team. See our methodology for more information.

Level term monthly premium

£8.18

Customer service score*

75%

% of claims paid

99.7%

2022

Level term monthly premium

£8.18

Customer service score*

75%

% of claims paid

99.7%

2022

Why We Picked It

Vitality pays out virtually every life insurance claim it receives. The insurer comes with good customer service scores too, alongside reasonable monthly premiums which include automatic cover for terminal illness (diagnosed with a life expectancy of 12 months or less).

Its Vitality Programme offers discounts and savings with specified reward partners including Bluecrest, Champneys and Garmin, all designed to promote and reward a healthy lifestyle.

The programme you get depends on the cost of your monthly premium but all policies come with the basic Select Programme. You can work your way from Bronze through to Platinum in return for taking demonstrable steps to look after your health.

Key Features

•  99.8% of claims paid

•  Select Vitality program as standard

•  Can be put into trust

•  Funeral pledge of at least £5,000

Zurich

Zurich
4.5
Our star ratings are based on a range of criteria and are determined solely by our editorial team. See our methodology for more information.

Level term monthly premium

£8.10

Customer service score*

68%

% of claims paid

97%

2022

Level term monthly premium

£8.10

Customer service score*

68%

% of claims paid

97%

2022

Why We Picked It

Global insurer, Zurich offers level term life insurance at a competitive monthly premium. The insurer paid out 97% of all life insurance claims in 2022.

Terminal illness cover is included as part of a Zurich life policy at no extra cost – if it’s diagnosed with a life expectancy of 12-month or less.

The policy can also be put into trust, while its ‘funeral pledge’ guarantees to pay out at least £5,000 to help with funeral expenses if there is a delay in paying the full amount.

The insurer says it aims to process claims within 48 hours.

Key Features

•  98% of claims paid

•  Can process claims in 48 hours

•  Can be put into trust

•  Funeral pledge

Royal London

Royal London
4.5
Our star ratings are based on a range of criteria and are determined solely by our editorial team. See our methodology for more information.

Level term monthly premium

£8.74

Customer service score*

no data

% of claims paid

96%

2022

Level term monthly premium

£8.74

Customer service score*

no data

% of claims paid

96%

2022

Why We Picked It

Offering some of the cheapest monthly premiums we found, Royal London policies can be put in trust and they also offer a funeral pledge.

Life insurance policies cover terminal illness too (with a life expectancy diagnosis of less than 12 months).

Royal London pays 96% of life policy claims.

Key Features

•  96% of claims paid

•  Can be put into trust

•  Funeral pledge of at least £5,000

*Fairer Finance data, March 2024

What’s our methodology?

We obtained life insurance quotes through Lifesearch, our life insurance partner, for a single 30-year old (insurers are not permitted to price based on gender).

We assumed that the individual was a healthy non-smoker, with no pre-existing medical conditions, and working in a low-risk job. On this basis we looked for £200,000 worth of level-term life cover spanning 25 years.

We then looked at the percentage of life insurance claims each provider paid out, as well its customer service score (as rated by Fairer Finance, March 2024).

With all premiums coming in at under £10 a month and a price differential, in some cases, of pennies, we weighted the results on:

  • Percentage of claims paid
  • Customer service score
  • Any other benefits that come free with the policy

All policies listed offer a funeral pledge of at least £5,000 which bridges any gap in costs between the funeral and getting the full payout.

All come with the option to be written in trust.

We listed only policies that cover terminal illness as standard. This means the policy will pay out on terminal illness or death (whichever happens first).

Critical illness cover will need to be added separately to the policy, and could increase the monthly premium you are quoted.

In line with industry standard, none of the life insurers provide cover for suicide for the first 12 months.

What is life insurance?

With this type of insurance, you pay a regular monthly (or occasionally, annual) premium to a life insurance company. If you die during the term of the policy, a lump sum is paid out to your family – or other dependents – known as ‘beneficiaries’.

*58% of people do not have life insurance, rising to 69% for those aged over 55.
Those aged under 35 are most likely to have life insurance (52%).
Of those without life insurance, 33% say it’s because the cost is too high.

While the beneficiaries can do what they like with the funds paid out, the money is commonly used to clear the mortgage and other outstanding debts, as well as to cover household bills, living costs – and to fund childcare.

*National survey of 2,000 people, conducted by Opinium on behalf of Forbes Advisor between 10-13 January 2023.

Why should you take out life insurance?

Given that none of us knows what’s around the corner, it’s very important to have financial protection in place.

Simply put, life insurance offers peace of mind that your family would be financially protected if you were no longer around to provide for them. Without this safety net in place, they may struggle to keep financially afloat, causing even further anguish and upheaval.

When should you take out life insurance?

Certain key life events trigger the need for life insurance. A recent Forbes Advisor survey found that 30% of people who had life insurance said ‘becoming a parent’ had prompted them to buy cover.

Buying a house was another trigger, with 21% taking out a policy because it was a requirement for their mortgage lender, and 15% to ‘pay ther mortgage’ in the event of their death since they are the only financial provider in their household.

However, more than a third (38%) of respondents said they took cover out of ‘general caution’ and they don’t expect anything negative to happen to them.

Once in place, it’s important to think about increasing your level of cover when things change – for example, you have more children, or take on a bigger mortgage if you’ve upsized your home.

While a greater level of cover is likely to result in a higher premium, this is likely to pale into insignificance for the peace of mind it offers – and, of course, what it might one day provide.

How much cover do you need?

As a minimum, you should opt for enough cover to pay your debts – including what’s outstanding on the mortgage, credit cards, and loans – pay the bills, keep your car, and maintain your current standard of living.

However, some experts say that around 10 times your gross annual salary should be a starting point, rising to 15 or even 20 times if you have large commitments.

How much will it cost?

Competition among life insurance companies, as well as simplicity of the outcome (alive or dead), means premiums are relatively cheap – literally starting from as little as £5 to £10 a month.

The exact premium you are quoted however, will depend on a range of factors, including your age, health and lifestyle (such as if you exercise and whether you smoke). It will also hinge on the amount of cover you want (known as the ‘sum assured’), and the length of the term you want the cover for.

You can expect to pay lower premiums if you take out life insurance when you are young and healthy, while premiums will gradually increase as you get older.

Premiums tend to be higher also if you suffer from a health condition that could mean you are more likely to die sooner than the projected average age.

Average monthly cost of life insurance types


Level term Decreasing term Whole of life Over 50s plan Men Women Smoker Non-smoker Joint policy
Average premium cost £38.23 £38.07 £178.30 £29.65 £44.85 £31.30 £40.34 £38.53 £46.23

Source: Reassured.co.uk 2021/22

What are the main causes for life insurance claims?

What are the different kinds of cover?

There are various kinds of life insurance available and the one you choose will depend on your circumstances.  According to a recent Forbes Advisor survey, all but 3% of those with life insurance currently have the following:

  • Whole life insurance (52%)
  • Term life insurance (32%)
  • Critical illness cover (31%)
  • Joint life insurance (28%)
  • Terminal illness cover (18%)
  • Children’s cover (16%)
  • Over 50s life insurance (11%)

Here is some more detail on the most common types of life insurance.

Term life insurance

In broad terms, the most common form of life insurance, ‘term insurance’ is the cheapest option as it only pays if you die within the specified term of the policy.

This is opposed to ‘whole-of-life’ cover (more details on this below) which pays out whenever you die.

Term life insurance falls into three different types: decreasing term, level term and increasing term. Here’s an outline of each.

Decreasing term: With a decreasing term policy – the most common type of ‘term’ cover – the amount that will be paid out in the event of death becomes lower over time, so it’s most suitable if your own financial commitments will also reduce over time.

The most notable example of this is a repayment mortgage – the life insurance pay out decreases in line with the projected fall in your mortgage balance as you chip it away.

Decreasing term insurance is cheaper than level term insurance, and often the most cost-effective option. That said, if you have children who depend on you financially, level term cover may be a better option.

Level term: A level term policy pays out a fixed amount if the policyholder passes away within a pre-selected period of time – known as the policy ‘term’. No matter how many years into the policy you pass away, your beneficiaries will receive the same payout – known as the ‘sum assured’.

This makes level term cover well-suited to an interest-only mortgage, where only the interest is paid off but the capital debt does not decrease. While premiums remain the same during the term, they tend to be more expensive to those attached to decreasing term cover.

If you survive the ‘term,’ your cover will end, and you will need to purchase a new life insurance policy.

Increasing term: With an increasing term policy, the amount insured goes up every year. How this annual increase is calculated depends on the insurer and policy. It may be linked to an inflation index, an insurer-set multiplier or, rarely, simply rise by a fixed amount.

Because the amount of cover becomes greater over time, premiums tend to be more costly than other types of life insurance.

Whole-of-life cover

Unlike term insurance (which only pays out if you die within a specified period), a whole-of-life policy is designed to run for the remainder of your life.

Bear in mind that, as with all life insurance policies, whole-of-life insurance takes into account age and any pre-existing medical conditions.

So, provided you keep paying your monthly or annual premiums, your loved ones are guaranteed to receive a payment when you die.

For this reason, premiums for whole-of-life insurance tend to be more expensive than term insurance.

Furthermore, as this type of policy is typically linked to a specific investment, your premiums may also increase if that investment does not perform well.

Usually, you will need to pay premiums for the rest of your life, although there are some types of whole-of-life cover (such as over-50s) that allow you to stop paying, but still be covered once you reach a certain age, 90 for example.

Payouts for whole-of-life cover are often used to offset any inheritance tax bill that your loved ones may receive in the event of your death.

Single life insurance

This type of policy covers just one person, opposed to joint life insurance (see below) which is used to cover a couple.

That said, if you’re in a couple, you might consider taking out two single policies so your dependents could potentially receive two payouts.

However, this approach tends to be more expensive than a joint policy as you will also have to pay two lots of premiums, rather than one.

Joint life insurance

A joint life insurance policy covers two people, usually who are married or in a civil partnership. It’s also possible to buy joint life insurance as an unmarried couple, or when you are financially linked to another person through other means, such as being business partners.

Joint life insurance means you pay just one premium which will provide cover for you both. However, the policy only pays out once – on the first person to die within the term.

Before taking a joint policy, it’s worth checking whether two single policies could be better. While it means two sets of premiums, it also means two potential payouts.

Have your policy ‘written in trust’

It could be worth getting your life insurance policy ‘written in trust’ as money in a trust is no longer your asset, so not liable to inheritance tax (IHT).

If you do this, the pay out from the life policy goes directly to the beneficiaries, rather than your estate, meaning it won’t be taken into account when IHT is calculated.

Neither income tax or capital gains tax is charged on life insurance payouts.

Death-in-service cover

If you have an employer, your workplace may offer a ‘death-in-service’ policy as part of a package of company benefits.

This type of policy will pay a tax-free lump sum to your family should you die while working for your employer. This sum will usually be a multiple of around four times’ your average salary (gross).

You must be on your firm’s payroll to qualify for this cover.

While this can be a useful benefit, this type of cover only lasts while you are employed by the company. As soon as you stop working – or move jobs and start working for a new employer – you are no longer entitled to receive it.

Over-50s life insurance

The older you get, the harder it can be to find affordable life insurance. This is where ‘over-50s life insurance’ can come into play.

As it says on the tin, this cover is designed specifically for those aged over 50. Applicants are not underwritten and are therefore guaranteed to be accepted, irrespective of their current health or lifestyle. This can make this type of policy popular.

Premiums are usually fixed for the duration of the policy, and offer guaranteed payouts, so long as you keep up with all payments.

However, these plans have come in for criticism because they can pay out less than a policyholder has paid in – so be sure to do your research carefully before signing up.

Mortgage life insurance

This type of life insurance – also known as ‘decreasing term insurance’ – pays out if you pass away before you have paid off your mortgage. As this cover is tied to your mortgage, the amount covered decreases as you continue to pay it off.

Note that if you bought this cover from your lender when you took out your mortgage, you could be paying over the odds, so it could pay to switch (ensuring, of course, you leave no gaps in cover).

Critical illness cover

Many life insurance policies allow you to add on critical illness cover for an additional cost. It pays out a tax-free lump sum if you are diagnosed with a specific illness or medical condition listed on your policy – such as cancer, heart attack, stroke or loss of limb – during the term.

Its purpose is to offer a financial buffer at a highly stressful time of life, and support if you have to stop working. The funds paid out can be used to ensure your mortgage and other major financial commitments are paid. The money can also be used to make any required adjustments to your home that make life more comfortable.

Critical illness cover is considerably more expensive than life insurance. So, while you should look to take out enough cover for your mortgage, debts and monthly bills, in reality, it may be a case of seeing how much you can afford.

Also be sure to read the small print carefully, as insurance companies have a finite list of conditions they will cover. This can run to more than 100, but if your illness isn’t included, you won’t get a pay out.

You may also be declined if you have withheld information about your medical history or if the illness you contract isn’t advanced enough.

Income protection

Income protection will pay out a regular income if you are unable to work due to illness or injury, thus enabling you to continue to meet your monthly outgoings.

Many policies come with a ‘deferral period’ where you won’t receive a pay out for, say, the first six months of being unable to work. But the best policies will continue to pay over a long period of time until you are fit enough to return to work – or reach retirement age.

The amount you take out is usually based on your salary. Premiums can be guaranteed or reviewable.

And look for policies that pay out if you cannot carry out your ‘own occupation’ rather than ‘any occupation’ at all as, in reality, this would make a big difference to the value of the policy.
If you don’t have dependents, income protection is likely to be the most important type of cover.

It can also be crucial if you are the main breadwinner or sole earner in your household.
Equally, income protection can be especially important for the self-employed who are not entitled to sick leave or pay from an employer.

Family income benefit

This variation on term assurance is designed to cover regular monthly expenses for your family if you pass away.

It is a cheaper type of protection which pays out a series of smaller regular tax-free amounts to your beneficiaries that can be used as income – as opposed to one single lump sum which needs to be managed or invested.

The term of the policy is often timed to cover the period children are at school, or until your child becomes non-dependent – though can extend beyond this.
Generally speaking, the total paid out by the insurer is lower than under ‘term’ policies, meaning the amount will not be sufficient to clear the mortgage.

But as the payout is lower, premiums are usually lower, too

What should I look for in a life insurance provider?

Check exactly what is and is not included in each provider’s policy. The cheapest policy won’t necessarily provide the best cover and exclusions may vary depending on the insurer. If you don’t understand a particular definition or exclusion, find out from the provider.

Check too whether you can add extra features to your policy (for an additional cost). You might be able to add a waiver of premium clause, for example. This will cover your monthly premiums if you can’t work due to illness or injury.

Finally, check each provider’s pay-out rates. These are the percentage of total claims received by the provider that have resulted in a successful pay-out.

Most insurers publish these rates on their websites but as a benchmark, our Forbes Advisor life insurance statistics page shows that pay-outs range between 95% and 99.8%.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

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How much life cover do I need?

First and foremost, it’s important to have enough cover to clear any outstanding mortgage. This is likely to be your household’s largest single outgoing.

Ideally, you should also have enough insurance to cover all of your debts, plus extra to cover everyday living costs and household bills. This might include childcare costs, energy bills, food bills, council tax and car costs.

Consider how much financial support your family might need both now and in the future.

Remember to also factor in any other life insurance you might have such as death in service benefits through your employer.

How and when does it pay out?

What affects the cost of premiums?

Does it cost more to pay premiums monthly?

What happens if I miss a payment?

What happens if my insurer goes bust?

Can I add on critical illness cover?

Forbes Advisor UK and CYTI Limited do not offer advice. Any insurance products shown or discussed are done so on a non-advised basis to help you make an informed choice.

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