Life Insurance: Your Complete Guide to Coverage, Costs & Peace of Mind

Life insurance can seem overwhelming. With confusing policies, medical exams, and jargon like ‘term assurance,’ it’s easy to to put it off.  

At askpaul, we keep it simple—no jargon, just the facts. This FAQ covers everything from how much cover you need to whether a medical is required. Whether you’re protecting your mortgage or securing your family’s future, we’ve got you covered.  

Below is a list of the common questions that we hear from people enquiring about Life Insurance  

• Mortgage Protection (designed to pay of the mortgage if either borrower dies).  

• Level Term Assurance (as the name suggests it is a level of cover protection that remains the same throughout the term of the term of the policy). 

What is Life Insurance? 

Life Insurance is paid out in the event of your death (or sometimes on the diagnosis of terminal illness), life cover is intended to provide your family with a lump sum to clear any of your outstanding debts (such as mortgages, loans or credit cards).  

Why should I consider life insurance? 

Life insurance, although always beneficial to your loved ones, is primarily aimed at those people whose death would cause their family to struggle financially without their income. It provides an assurance that, in the event of the worst eventuality, your family will not struggle financially. The majority of mortgage lenders insist on life insurance /mortgage protection cover as part of their compliance requirements under their lending policies on drawdown of the mortgage. 

How much life insurance cover do I need? 

The level of life cover you opt to take is very much up to you and is especially suitable if you are intending to clear any borrowings in the event of your death or provide your family and dependents with cash sum to cover future day to day costs.  

If you need to take a mortgage protection policy, the level of cover is arranged in accordance with the balance and term of your mortgage; this means the cover may reduce in line with your repayments against your home loan. 

What kinds of policy can I take out? 

You can take out life insurance that covers you for the term of your mortgage, which is usually between 20-30 years.  Alternatively, you can take out a level term policy that could be linked to your children or dependents age, this could be the age of the youngest child, when they have leave college at 25 as an example.  

The length of term is up to you but the longer you insure your life for, the greater the premium, but this is dependent on your health status and whether you have any pre-existing medical issues.  However, the earlier you apply for life cover age wise the cheaper the cover should be. A 25 year old’s premiums can be cheaper than a 35 year old applicant. 

How long do I need cover for? 

It really depends on your reason for applying for cover. Life insurance is taken out to protect the financial security of your dependents. For this reason, the most common policy duration is 20 to 25 years or until your dependents have completed full-time education. For Mortgage Protection it must be for the term of the mortgage. 

Am I eligible for life insurance? 

In short, anyone can apply, in truth the less risky are accepted. All customers who want to arrange life insurance will need to answer questions about their health, medical and lifestyle. Based on the customer’s responses, they may be required to undertake a medical examination and interview with a qualified doctor or nurse. 

Each insurance company has its own criteria for acceptance based on risk, and not everyone will be accepted for life cover. You must declare any health issues on your insurance application, as failure to do so could result in your policy being invalidated. This could have serious implications in the event of your death, meaning your loved ones are left with nothing. 

What affects the price I pay for life insurance? 

Insurers calculate your premium based on the level of risk you pose, and they use several factors to model this cost, including the term of the policy you require, the amount you want to cover plus your medical history. Your age will also play a factor, as will being a smoker. 

How long before I am covered? 

If you have had a history of ill health (e.g. high blood pressure, a recent operation etc) on the application, the insurance company will contact your GP or request a medical report. This will delay your application. So, it makes sense to get your application in as soon as possible. 

How do I apply? 

You can request a free life insurance quote online. If you are happy with the quote, proceed with the process which will ask you some medical questions. You can do this over the phone, or we can upload the information to a secure portal for you to access. 

When do I receive my life insurance policy? 

When your application has been accepted and you advise a start date, the policy documents are posted directly to you or if it is assigned to the bank, please put the address of the bank onto the application (under dispatch documents address) the original document will be sent directly to the bank. 

Change of mind / cancellation? 

When you receive your policy document you are entitled to a 30 day ‘cooling-off’ period. This allows you to cancel your policy and a full refund will be given. 

Will you cover me if I already suffer with a specific medical condition? 

You must tell at the time of your application, if you have pre-existing medical condition. The insurer may then write to your doctor or request that you attend a medical examination before a final underwriting decision is made. 

If I am a smoker does this affect the premium? 

Yes. If you are a smoker, your premium will be higher than that of a non-smoker. 

Is a medical required? 

A medical is not required in all cases. However, if you have any existing medical conditions, the insurer will request a medical report from your doctor. 

Life insurance isn’t just another expense—it’s peace of mind for you and security for your loved ones. Whether you’re protecting your mortgage or making sure your family is financially secure, the right policy can make all the difference. At askpaul, we believe in keeping things simple and giving you the straight facts. If you’re still unsure about what cover suits you best, get in touch with our team—we’re here to help. 

This article is for general information purposes and is not an invitation to deal or address your specific requirements. Any expressions of opinions are subject to change without   notice. The information disclosed should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information of the various source material, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Premiums are subject to a completed application form and the provider may require additional health screening information. This further information and assessment may increase the cost of cover.