Life Insurance: A Guide

Life is full of uncertainties, and one of the smartest financial decisions you can make is to secure the future of your loved ones. Whether you’re just starting your journey to financial security or re-evaluating your existing coverage, in this guide we’re here to ensure you have a clear understanding of your life insurance options and make well-informed and smart choices.

At Monefi, we believe in simplifying the complexities of smart financial decisions and providing reliable support at every stage of your journey.

What is life insurance? What does it cover?

Let’s start with the basics. Life insurance is a financial safety net that provides a lump-sum payout to your loved ones in the unfortunate event of your passing during the policy term. It’s designed to ease the financial burden on your family, helping them pay off mortgages, cover living expenses, and maintain their quality of life. It’s important for you to understand that life insurance is not “one size fits all”. There are multiple types of life insurance that need to be understood for you to get the most out of this investment. Ranging from term assurance, income protection, whole-of-life insurance, and over-50s life insurance, Monefi offers multiple types that cater to your unique financial needs, ensuring you have reliable and well-suited coverage without any money being wasted on the unnecessary.

Types of Life Insurance:

We understand that life insurance is just one piece of the puzzle. That’s why we offer additional coverage options designed to ease the financial strain during challenging times, allowing you to continue supporting your family. Read along to understand which situation suits your needs.

1. Term Assurance Insurance

  1. The most popular forms of life insurance
  2. Provides coverage for a specified term, which is excellent for individuals who want financial protection during specific life stages.
  3. For example, it’s a smarter choice if you’re looking to pay off a mortgage or secure your family’s future while raising children.
  4. Hence, term insurance offers peace of mind, knowing that your family will be financially supported if you pass away during that policy term.

2. Income Protection Insurance

  1. Your safety net when illness or injury prevents you from working
  2. Income Protection pays out a regular income, ensuring that you can continue to meet your monthly expenses.
  3. It’s especially crucial if you’re the primary breadwinner in your household or if you’re self-employed and not entitled to sick leave or employer-provided benefits.
  4. Income Protection Insurance is designed to help you maintain your standard of living during challenging times, making it an integral part of your financial planning.

 3. Over 50s Life Insurance

  1. Designed specifically for individuals aged over 50.
  2. What sets it apart is guaranteed acceptance; irrespective of your health or lifestyle, you will be eligible to apply for over-50s life insurance.
  3. A popular choice for those looking to secure their family’s financial future later in life, it ensures that your loved ones receive a lump-sum payment when you pass away.
  4. Over 50s life insurance is a practical choice for those who might not have considered life insurance earlier in life but want to ensure their family’s financial security.

4. Critical Illness Cover

  1. Critical Illness Cover provides a tax-free lump sum if you’re diagnosed with a specific illness listed in your policy.
  2. This type of insurance serves as a financial buffer during challenging times, allowing you to continue supporting your family and covering essential expenses.
  3. The funds paid out can be used to ensure your mortgage and other significant financial commitments are met.
  4. This list may include common critical illnesses like cancer, heart attacks, strokes, or loss of limb.

 5. Private Medical Insurance

  1. Private medical insurance ensures that you receive prompt medical care when you need it the most. It’s a form of insurance that focuses on your health and well-being.
  2. In the event of illness or injury, private medical insurance guarantees that you receive the best medical care, minimising waiting times and ensuring you get the treatment you need.
  3. While it doesn’t replace traditional life insurance, it complements it by safeguarding your health and well-being better, making it a smarter choice in a medical emergency.

6. Whole Life Insurance

  1. Whole Life Insurance offers lifelong coverage, providing financial security no matter when you pass away.
  2. Unlike term insurance, which covers a specific period, whole life insurance continues for the rest of your life.
  3. Whole Life Insurance takes into account factors such as your age and any pre-existing medical conditions, and premiums may increase if the policy is linked to specific investments.
  4. Most importantly, it is often used to offset any potential inheritance tax bill that your loved ones may incur upon your death.

Do I need life insurance?

The necessity of life insurance varies depending on your unique circumstances. If there are people who rely on your financial support, like children, parents, or a partner, life insurance can serve as a crucial protective measure.

Consider whether your loved ones could manage their finances if you were no longer there to provide for them. Think about the funds required to cover expenses like childcare, household bills, and daily living costs. While retirees with independent children might find less urgency for life insurance, it’s a valuable consideration for new couples, homeowners, young families, and those with dependent children.

When should I get life insurance?

As your life evolves, so should your protection. Whether you’re purchasing your first home, entering into marriage, or welcoming a new member to your family, these are moments that might trigger the need for life insurance. If your family grows with more children or you embark on a larger mortgage due to upsizing your home, it’s wise to consider buying or potentially increasing your coverage if you already have one. Life changes are unpredictable; hence, there is no perfect time to consider having one as a protective shield anyway.

How Much Does Life Insurance Cost?

We understand that you want a policy that not only protects your family but is also affordable. That’s why we offer life insurance plans that are as budget-friendly as your morning coffee latte. How? We at Monefi combine our cloud-based technology with decades of local financial experience that our senior insurance experts bring to the table. With an amalgamation of both, we make it possible for our customers to buy life insurance for less than £4 a month.

To understand this in depth, various factors usually affect the cost of your life insurance policy:

  1. Age: The older you are, you typically pay higher premiums due to increased health risks.
  2. Lifestyle: An unhealthy lifestyle, like excessive drinking or obesity, can lead to higher premiums.
  3. Health: Pre-existing medical conditions may result in higher policy costs.
  4. Family medical history: If your family has a history of serious medical conditions, it could potentially have an impact on your price.
  5. Occupation: Risky jobs may lead to increased premiums.
  6. Smoking: Smokers generally pay more due to associated health risks, including vaping.
  7. Length and amount of coverage: Longer terms and higher coverage amounts often result in higher premiums.

We believe that financial security shouldn’t break the bank, and it should be accessible to everyone. Hence, with life insurance for less than £4* a month, backed by a simplified online process, your family’s protection is now within reach, much more affordable and reliable with Monefi.

Note: Providing accuracy in delivering these details is crucial. Inaccurate information can have an impact on pay out claims.

What should you look for in a life insurance provider?

Experts say:

“When it comes to life insurance, it’s essential to make informed decisions. Monefi advocates best practices in choosing the right coverage. We recommend that you consider an amount of coverage that not only pays off debts but also covers living expenses, childcare costs, and mortgage payments. As a starting point, it is recommended that the coverage be at least ten times your gross annual salary, and even more if you have substantial financial commitments.”

I still have a few questions. What should be my next steps?

At Monefi, we are committed to making sure our customers have a clear understanding of their life insurance choices. That’s why we offer free insurance consultation calls. These calls are your opportunity to get the clarity you need. We’re here to answer your questions, provide expert advice, and help you choose the right policy for your family’s future.


Life insurance is an essential part of your financial plan, providing peace of mind and financial security for your loved ones. Monefi makes the world of life insurance simple and affordable, offering a range of options tailored to your unique needs. We believe in clarity, affordability, and reliability. Let us be your guide on this journey to securing your family’s future. Get started with Monefi today and take the first step towards financial peace of mind.

Contact us for a free insurance consultation, and we’ll assist you in making the best life insurance choices for your family.


*This article is intended for informational purposes only and should not be considered financial or insurance advice. Consult with Monefi’s insurance expert for personalised guidance.

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