Top 5 UK Life Insurance Companies: Pros, Cons & Price

If you are the breadwinner of your family, then you must purchase a life insurance policy. That’s because life insurance can secure your future, and your family won’t be worried in the worst moments of life. Do you know that two-thirds of every adult in the UK in their 30s does not have life insurance.

This is more important if you have children. However, it is difficult to find a company that you can trust, which policy you should buy, and which one to avoid. Besides, no one wants to spend thousands of pounds on their life insurance and get nothing in a time of crisis.

In this guide, we will be reviewing top companies in the UK and providing tips for choosing the right policy. So you can find out which one is best for you.

Tips for Choosing The Right Insurance Provider

There are a few tips that are important to consider in order to choose the right insurance plan/ provider:

• Reputation: Check the reputation of the insurance company and its customer service. Reliable service ensures the insurer will be available when needed.
• Customer Reviews: Research the reviews and ratings provided by the customer. This will help you to see whether their previous customers are satisfied or not. If the policyholders give positive feedback, it means that the policy agent is trustworthy and reliable. In addition to this, you can also read valuable health insurance reviews on this site.
• Coverage Options: Another main factor to consider is checking the company's coverage options. Some policy insurers provide additional perks, such as illness coverage. Make sure your needs align with the coverage provided by the insurer.
• Affordability: It is important to compare the rates of every company’s insurance plan. In this way, you get the insurance policy that gives the best value for money. Most importantly, never think cheaper is always better.

All You Know About These 5 Best Life Insurance Companies In UK

Following are the 5 best life insurance companies. Some of them even offer pet coverage.

Aviva

1. Overview

Aviva is the UK’s largest insurance company and also one of the biggest companies in Europe. This company is well known for life, home, and car insurance.

In addition to this, they also offer investment opportunities and retirement plans. According to their statistics, Aviva paid 99.4% of life insurance claims they received.

2. Reasons To Choose

• There is a wide range of policies available
• Term insurance lasts from 1-50 years
• Other features include house purchase cover, separation, and terminal illness.

3. Reasons To Avoid

• Critical illnesses (like heart attack, diabetes type 1, stroke, etc.)will cost you extra money.
• There is no cash-in value in the policies. That means if you stop paying for the premium, the policy will stop, and you won’t get your money back.

4. How Much Does It Cost?

The standard policy price is £14.6/month. However, the cost of the policy depends on several factors, such as your age, current health condition, occupation, whether you smoke, etc.

• For example, a 30-year-old non-smoker has to pay £113/year for a £300,000 cover (level term).
• Whereas, 60 year old would pay around £600 for the same cover.

5. Age Limit

• The age limit of Aviva insurance is 18 - 77.

Legal and General

1. Overview

Legal & General offers life insurance policies for everyone. In 2022, the company paid 96.7% of the insurance claims. They offer a variety of insurance policies like income protection, rental income, illness cover, over 50s, and whole of life.

2. Reasons To Choose

• The minimum term is one year.
• It provides you with over the ’50s and even a whole life
• Coverage starts when the application is received. You can get coverage in just 20 minutes
• Online quotes are available for these policies for illness, injury insurance, etc.
• Term life policies include terminal illness coverage and accidental death benefits for free.

3. Reasons To Avoid

• A medical exam is required for every life insurance policy (except over 50’s)
• Health support is limited only to phone-based service.

4. How Much Does It Cost?

The monthly premium starts from £5/month. A 30-year-old would pay £118/yearly for a level term policy of 300,000 covers. For 50-year-old, it would cost £638 for the same coverage

5. Age Limit

• 18 - 77, while the coverage is available upto the age of 90.

Royal London

1. Overview

The third one on the list of top 5 UK life insurance companies is Royal London. Compared to other life insurance companies, this company has paid 99.4% of claims in 2022.

This percentage is huge. Also, it is a green flag for you, especially if you are considering securing your future and your loved ones can get the claim, even if you pass away.

2. Reasons To Choose

• Terminal illness coverage is free.
• You can trust them because they have gained the trust of UK residents for over 160 years.
• For an extra cost, you can include other severe illness benefits, which cover six illnesses: dementia, cancer, etc.
• Diabetes life cover covers type 1 and type 2 diabetes for just £10/month(the claim is provided in a lump sum on terminal illness or death).

3. Reasons To Avoid

• No wide range of policies. Just two low-level policies are available
• Only a financial adviser can give you the access cover of 750,000, which is only available
• No term life insurance

4. How Much Does It Cost?

• The policy starts from £7/ month.
• A 30-year-old has to pay £127 a year for £300,000 in cover costs (level term policy). A 50-year-old would pay 586 for this coverage.

5. Age Limit for Coverage

18 - 70 years old for UK residents. 18- 89 for diabetic patient

Liverpool Victoria

1. Overview

Liverpool Victoria, or LV, was founded in 1843. This company was famous for selling penny policies to help the underprivileged at their funerals. 97% of the claims were paid in 2023.

As of 2024, they offer several financial services like life insurance and critical illness coverage. They also offer home, travel, car, and even pet cover.

2. Reasons To Choose

• You have a choice to opt for full or budget income coverage.
• You can get their quotes online for life and critical illness coverage
• Free access to the company’s Doctors and Legal Advisor
• It is a mutual company

3. Reasons To Avoid

• The minimum term of the policy is five years.
• No 50’s insurance or whole of life.

4. How Much Does it Cost?

The cover starts from £5/ month. For a 35-year-old individual (non-smoker, average health, in class one occupation), it would cost £12.24/month for 250,000 coverage, meanwhile £45.24 for a 50-year-old guy.

5. Age Limit for Coverage

• The limit starts from 17- 84 of age.

Vitality Life

1. Overview

Vitaliy Life has one of the most unique concepts among all other insurance companies in the UK. This company emphasizes that its policyholders should maintain a healthy lifestyle. Surprisingly, it offers discounts and rewards when they complete healthy lifestyle activities.

2. Reasons To Choose

• Offer an add-on called Optimiser, which tracts your activities and even reduces your premiums by upto 40%.
• Policies are easy to purchase—no need for an agent or adviser.
• It provides you with discounts on gym memberships and other wearable technology.
• If you or your child have a serious illness, you can add coverage for a tax-free payout.

3. Reasons To Avoid

• Smokers don’t get any discounts.
• The membership system may restrict you from shopping.
• You must maintain a healthy lifestyle in order to get rewards.

4. How Much Does It Cost?

For a 30-year-old age, a £300,000 coverage (level term policy) costs £113/year. On the other hand, the same package for 50-year-olds costs £609/year.

5. Age Limit

• The age limit starts as low as 17 to 74.

Conclusion

To conclude, these were the five best life insurance companies in the UK. These companies have different policies and terms for various individuals. Moreover, there is no insurance company that fits every individual well.

Ultimately, it all depends on your health condition, affordability, and goals. So make sure you research everything about these companies, especially MS life insurance, where you can compare life insurance quotes with MS. Also, ask your friends and colleagues for suggestions, and then buy a life insurance policy.