QUICK QUERY? Speak to a UK adviser
0800 316 6917*
Call waiting time: 8 secs

Let's Help You Find the Best Life & Critical Illness Cover Policy (& Save Money too!)

Free Quote

Since 2006 we have helped 327,027 people compare Protection Insurance quotes.
We would love to do the same for you...

Now’s the time to protect your loved ones - Prices have never been cheaper.

Let's help guide you through the options and find the best deal for your circumstances.

Our quotation service is completely FREE & you are under no obligation to purchase.

Since 2006 we have helped 327,027 people compare Protection Insurance quotes.
We would love to do the same for you...

What’s the difference between whole life insurance and term life insurance?

If you are in the market for a life insurance policy, you might think that a lot of the terms surrounding this popular form of protection cover are self-explanatory. And that may be the case to some extent! Nonetheless, it is crucial to be well-informed on what distinguishes the different types of life insurance out there, and the implications for you and your loved ones.

The central principle behind life insurance is straightforward: it’s a product that pays out a tax- free lump sum to the family of the policyholder in the event of the latter’s death.

Such money could be invaluable for giving surviving relatives financial security during a distressing and difficult time - enabling them to pay for such essentials as mortgage payments, loans, funeral costs and daily living costs.

While any type of life insurance policy that you take out will entail you paying for monthly premiums, exactly how this cover works will depend on whether you purchased whole life insurance or term life insurance. So, what differentiates these two types of cover?

Whole life insurance lives up to its name

As the term ‘whole life insurance’ suggests, this type of cover - also sometimes referred to as ‘life assurance’ - will cover you for what remains of your life, provided that you continue paying for your premiums. This means that the exact time you eventually die doesn’t matter - as long as the policy is still in operation, your loved ones will be paid a lump sum by the insurer.

Unsurprisingly, whole life insurance tends to be a more expensive form of life insurance than the alternatives. However, this does guarantee that your loved ones will receive a pay-out, as long as the terms of the cover are satisfied.

Under the banner of whole life insurance, two types of cover are available: balanced cover and maximum cover. The former type involves both the costs of the premiums and the pay-out amount remaining the same for the duration of the policy.

As for maximum cover, taking out this form of life insurance would mean your insurer paying the money you pay them in premiums each month into an investment fund. The idea behind this is to try to achieve a sufficiently large return to cover the pay-out that your relatives would eventually receive when you die. You might even receive a bonus if the investment performs well - but if it doesn’t, you may be asked to fork out for higher premiums to cover the loss.

Term life insurance is time-limited - but many different options are available

Again, the basic meaning of ‘term life insurance’ might seem obvious; it’s based on a fixed ‘term’, or period of time (such as 20 years). This also helps to make term life insurance more affordable than whole life cover.

Term life insurance is available in three broad types: level term cover, decreasing term cover, and increasing term cover.

Level term cover, as its name implies, involves the pay-out amount staying the same throughout the life insurance policy. So, whether you die during the first year of cover or during the last year of cover, it makes no difference to the amount of money your family will receive.

This is as opposed to increasing term cover, whereby both your premiums and the pay-out amount would go up over time - worth considering, if you’re concerned about inflation over months and years gradually eroding the ‘real-world’ value of the pay-out amount.

Then, there is decreasing term cover - also sometimes referred to as ‘mortgage life insurance’. This type of life insurance policy is designed to assist in paying off large payments, such as a mortgage.

The idea with this type of cover is that as you gradually pay off your mortgage and thereby lower the outstanding balance, the pay-out amount of the life insurance policy will also fall over time.

In the event of you dying before the mortgage has been entirely paid off, your surviving loved ones would then be able to use the pay-out amount to cover the remaining balance.

Take the next steps to benefit from the ideal life cover

As the above makes clear, there are various needs and circumstances that a life insurance policy can be designed around - so you should be very careful to avoid accepting just any policy.

Call 0800 316 6917 today to speak to a UK adviser who can help you with the task of arranging a life insurance policy that perfectly caters to your requirements - for the right price.

Personal Service

We have tracked down the very best protection insurance advisers in the UK to ensure you have access to best advice and the best products from the leading insurers.

Instead of pushy sales people, our advisers offer a more personalised service to guide you through the process and ensure you enjoy lasting peace of mind by making an informed choice.

Personal Service

We have tracked down the very best protection insurance advisers in the UK to ensure you have access to best advice and the best products from the leading insurers.

Instead of pushy sales people, our advisers offer a more personalised service to guide you through the process and ensure you enjoy lasting peace of mind by making an informed choice.

Get Insured within 20 Minutes

It is possible to be protected with a life insurance or critical illness policy within 20 minutes provided the insurer does not require a GP report or medical.

This is normally required for large amounts of cover (over £400,000), or if your BMI is over 30, or you have any significant ongoing or past medical issues, or if you are involved in dangerous job or high risk hobby.

Read What Our Customers Think of Us

Five Stars (4.9)

Great communication, help and guidance.

All my questions were answered, as I know little on how life cover, critical illness and terminal insurance policies work.

I was given good independent advise, so I could confidently make my choice on what was right for me.

- Denise

Clear, friendly, efficient and prompt service.

No nonsense, no jargon, just clear and informative guidance. Very quick with results which did not disappoint. Delighted with my deal which was a third cheaper than my own bank offered me and I didn’t do any of the legwork. More than happy to recommend.

- Ms Shannon

I found the customer service representative very polite and informative and helpful.

I wished some information on life insurance for a mortgage I have applied for.

All in all the process was very useful and informative and the representative was very helpful and polite. I would recommend this online service to anyone who is looking for life cover.

- Mrs Severn

Very good professional service.

I was impressed by the quality of service by the advisor who dealt with my request. He has carefully listened to my requirements, asked a few relevant questions and has provided me with the option which suited my needs in the best possible way. I have really admired his flexible approach and fantastic customer skills.

- Mrs Cookson

Professional and no-nonsense approach.

Very thorough yet friendly service. Good contact and information one can understand.

- Heather Cronley

A professional customer centric company with the client at the heart of the transaction.

The advisor put me at the heart of the transaction, was professional, gave realistic opinions and suggestions offering me choices in clear terms which I understood.

- Andrew Hughes

Outstanding service and knowledgeable customer service rep.

I received a call as promised in my email. Marie Bedding was very knowledgeable in her subject matter, she took some basic details and was very polite and courteous in her manner.

Marie was very sensitive when discussing personal circumstances and listened carefully and showed compassion to my details. Marie then said ‘leave it with me and ill get back to you’, within 20 minutes Marie was back on the phone with the quotes as promised and gave me a selection of options to chose from.

Marie did not pressure me with the ‘Hard Sell’, I needed time to discuss the options with my partner, Marie kindly emailed me all the details and left it in my hands to contact her once I had made a decision and if I would like to go ahead with the policy.

I cannot fault this service and the professionalism I received.

- N Marsden

Excellent Service.

Great service, easy to understand terminology. Everything explained and documented by adviser. Thank you.

- Glenda

The quotation service is provided by an FCA-authorised insurance specialist

Promoted Premiums for 35 year old male (non-smoker) on a 25 year term - July 2021*
Life Insurance: £5/month = £75,948 sum insured
Critical Illness Cover: £10/month = £31,055 sum insured
Combined Life & Critical Illness Cover: £10/month = £27,572 sum insured