Compare your options with clear eyes.
The short answer
To compare term life insurance, first choose the shape of cover — level, decreasing, increasing, joint or family income benefit — then the amount and term. After that, compare real quotes on price, what is included, how claims work and whether the policy can be written in trust. The lowest-looking premium is not always the best fit.
Who this cover may suit
- You are unsure which type of term cover fits you.
- You want to compare more than just the monthly price.
- You are reviewing an existing policy against new options.
- You want a real quote after understanding the choices.
When to consider another option
- You only need a figure for how much cover — use the life insurance calculator.
- You want lifelong cover for a funeral — see over-50s cover.
- You are a company director — see relevant life policies.
How it works
Tell us about you
A few simple questions about your age, health and what you want to protect.
Choose amount and term
Pick how much cover you want, its shape and how long it should last.
Review real options
See options based on your answers, with a real person to help if you want one.
The main options side by side
MoneyHelper sets out the main kinds of life insurance and what each is for. [2] Our cover shapes guide goes deeper.
| Option | Payout over time | Often used for | Learn more |
|---|---|---|---|
| Level term | Stays the same | Family living costs, interest-only mortgages | Level term page |
| Decreasing term | Falls over the term | Repayment mortgages | Decreasing term page |
| Increasing term | Rises each year | Protecting against inflation | Increasing term page |
| Joint life | One payout, first death | Couples sharing a mortgage | Joint life page |
| Family income benefit | Monthly income to term end | Replacing a salary | Family income page |
What to compare beyond price
| Feature | Why it matters |
|---|---|
| Amount and term | Must match the need you are covering |
| Critical illness add-on | Definitions differ between insurers |
| Terminal illness benefit | May pay early on a qualifying diagnosis |
| Trust options | Speed of payout and Inheritance Tax |
| Support services | Some include bereavement or health support |
The FCA’s market study found competition in pure protection generally works well, but people should look at value, not just price.
Comparing two ways to cover a family
Fictional example: Aisha and Tom, 34 and 36, a £200,000 repayment mortgage and two children. No prices are shown because real premiums depend on underwriting.
- Option A
- One joint level policy for £400,000
- Option B
- Joint decreasing mortgage cover plus two single family income policies
- Compared on
- Price, payouts, flexibility on separation
- Trust
- Both written in trust
Option B pays more than once and matches needs more closely; Option A is simpler. See our joint vs single guide.
Tax and trusts
Writing a policy in trust can keep the payout outside your estate, where Inheritance Tax is usually charged above £325,000. [4] HMRC explains how trusts are taxed. [5]
Comparing well
What works well
- Choose shape and term before price.
- Compare definitions and extras.
- Write cover in trust.
What to watch
- Lowest premium is not always best fit.
- Example prices online can mislead.
- Inaccurate answers risk a claim.
The FCA’s market study into pure protection found that competition generally works well, while noting many households remain underinsured. [3] Answer every application question accurately: under the Consumer Insurance (Disclosure and Representations) Act 2012 you must take reasonable care not to misrepresent. [6]
Employer death-in-service cover is valuable, but MoneyHelper notes it usually ends when you leave the job. [7] If a claim is ever disputed, the Financial Ombudsman Service handles complaints about insurers free of charge. [8]
Keep exploring
- Level, decreasing and increasing term cover compared
- How much does term life insurance cost in the UK?
- Joint vs single life insurance: which suits a couple?
- Term life insurance: what it is and how it works
- Term life insurance
- Level term life insurance
- Decreasing term life insurance
- Life insurance calculator
Frequently asked questions
How do I compare term life insurance?
Start with what you need to protect, such as a mortgage or family income, then choose the shape of cover that matches it: level, decreasing, increasing, joint or family income benefit. Next decide the amount and term. Only then compare real quotes, looking at the price alongside what is included, such as terminal illness benefit, any critical illness definitions, trust options and support services. Comparing like with like matters: two quotes for different amounts or terms are not directly comparable.
Is the lowest premium always the right choice?
Not necessarily. A lower price can reflect a smaller amount, a shorter term, a decreasing rather than level payout, or fewer features. If a policy does not match what your family would actually need, it may not do its job. That said, for the same amount, term and shape, mainstream policies can be quite similar, and price is a fair way to choose between them. The key is to make sure you are comparing the same thing before you let price decide.
Why do you not show example prices?
Because they can mislead. Real premiums depend on your age, health, smoking status, occupation, the amount and term of cover and the insurer. Example prices online are often based on a young, healthy non-smoker and may look very different from what you are offered. We would rather explain the options honestly and let you see real prices based on your own answers. Starting a quote takes a few minutes and does not commit you to anything, and a real person can help if you have questions along the way.
Should I get one joint policy or two single policies?
A joint policy usually pays out once, on the first death, and then ends. Two single policies can pay out twice if both of you die during the term, and are easier to separate if your relationship ends. Two singles often cost a little more than one joint policy. Many couples with a shared mortgage choose joint cover for the mortgage, and some add single policies for family income. Our joint versus single guide compares the options in more detail.
Does comparing quotes affect my credit score?
Getting life insurance quotes does not usually involve a credit check in the way that a loan application does, so it would not normally affect your credit score. Insurers are mostly interested in your age, health, lifestyle and the cover you want. They may ask for permission to contact your GP for a medical report, which is separate. If you are ever unsure, ask whether any credit search will be carried out before you go ahead, so you can decide with full information.
Can I switch life insurance later if I find a better deal?
Usually, yes. Term life insurance does not typically build up a cash value, so you can stop paying and the cover ends. But a new policy will be priced on your age and health at the time, which may be higher than when you took out the original. Never cancel existing cover until any new policy has been accepted and is in force, so you are not left without protection. It is worth comparing carefully before switching, and checking any exclusions on the new policy.
Sources
- Association of British Insurers — Protection insurers pay out £7.84 billion in claims in 2025 (2026-06-29)
- MoneyHelper — What is life insurance? (2026-09-28)
- Financial Conduct Authority — MS24/1.5 Market Study into the Distribution of Pure Protection Insurance Products: Final Report (2026-09-21)
- GOV.UK — How Inheritance Tax works: thresholds, rules and allowances (2026-09-28)
- HM Revenue & Customs — Trusts and Inheritance Tax (2010-11-08)
- legislation.gov.uk — Consumer Insurance (Disclosure and Representations) Act 2012 (2012-03-08)
- MoneyHelper — Life insurance through work (2026-09-28)
- Financial Ombudsman Service — Complain about a financial business (2026-09-28)
- Office for National Statistics — Inflation and price indices (2026-09-17)
- GOV.UK — Bereavement Support Payment (2026-09-28)
- legislation.gov.uk — Income Tax (Earnings and Pensions) Act 2003 (2003-04-10)
- GOV.UK — Funeral Expenses Payment (2026-09-28)
- NHS — Cancer (2026-09-28)
- GOV.UK — Trusts and taxes (2026-09-28)