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Best life insurance provider

Life insurance is designed to ensure that those you leave behind when you die do not face financial hardship in your absence.

There are many different types of life insurance, designed to suit different circumstances. This page covers all types, and features our top-rated providers based on price, customer service and reliability when it comes to paying out.

check Fact Checked
  • By Clare West
  • Published: January 22, 2025
  • Edited by: Antonia Medlicott
  • Disclosure
  • Last Update: 6 days ago

My quick list

3.0/5

Aviva Wealth – Aviva is the UK’s largest insurance provider and offers two types of life cover: level cover and decreasing cover. Both are term insurance policies, designed to cover set periods of time, such as the duration of your mortgage, rather than the whole of your life.

Very high payout rate on life insurance claims
Low-cost in a range of scenarios

Capital at risk.

4.5/5

Vitality – Vitality (formerly known as the Prudential) sets itself apart from other providers by offering incentives and rewards for staying healthy.

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Incentives and rewards for staying healthy

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Highest percentage of life insurance claims paid out in 2023 (99.7%)

4.0/5

LV= – Liverpool Victoria (now known as LV=) offers decreasing, level and increasing (inflation-linked) term life insurance with some generous extra benefits.

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Up to £250 worth of eGift vouchers when you join (t&cs apply)

3.0/5

HSBC – With HSBC you can choose from either a single or joint policy but HSBC only offers level or decreasing term cover.

Attractive pricing in many scenarios
Offers up to £2m of protection

Capital at risk.


3.0/5

Aviva Wealth

– Aviva is the UK’s largest insurance provider and offers two types of life cover: level cover and decreasing cover. Both are term insurance policies, designed to cover set periods of time, such as the duration of your mortgage, rather than the whole of your life.

Very high payout rate on life insurance claims
Low-cost in a range of scenarios

Capital at risk.

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Reasons to use

  • High payout rate – 99.3% of life insurance claims in 2023
  • One of the cheapest brands in our price analysis
  • Provides cover up to 90 years old
  • 5-Star Defaqto rating
  • Includes terminal illness cover
  • Will cover funeral costs immediately, even when delays hold up the rest of the claim
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Reasons to avoid

  • Joint policy will only pay out once (no second death option)
  • Life + critical illness cover only covers 32 illnesses
  • Cannot be older than 59 to take out a policy
  • Lower maximum policy cover amount than competitors

Clare says

Aviva has one of the highest payout rates of any of the providers we’ve analysed. (Vitality had an everso slightly higher rate in 2023.)

It offers two different types of Term life insurance runs for a fixed period of time, and is often used to cover a certain period of time e.g. the length of a mortgage. These policies only pay out if you die during the term of the policy.term insuranceinfo: a level cover policy and a decreasing cover policy. Don’t forget, with term policies, you choose how long your policy lasts and once it’s finished, your cover will stop. You won’t receive a payout if you don’t die during the policy term.

The maximum age you can apply for cover with Aviva is 59, lower than many other providers. But the maximum age this plan will insure you up to is 90 – which is higher than some other insurers.

Like all the brands we’ve selected in this ‘Best’ list, Aviva is a signatory to the Protection Distributors Group Funeral Payment Pledge. Under this pledge, insurers are obliged to make an immediate payment of at least £5,000 to cover funeral costs when the policyholder dies, even if other parts of the claim are held up by delays (for example, with probate).

Aviva isn’t as flexible as some of its competitors in who, and how much, it’ll cover, however. The maximum sum it will payout is £750,000 (that drops to £400,000 if you apply at age 40+), and it’s as low as £200,000 if you’re 55+ when applying. Compare that to Vitality who will insure your life for up to £20 million. Aviva will also only take on new customers up to age 70. You’ll find other providers allow a higher minimum age.

  • Maximum sum insured: £750,000
  • Maximum age for term cover: 80
  • Maximum age cover can start: 59

Scores

Fees:

3.0

Trading platform:

4.5

Account opening:

4.5

Research:

3.0

Education:

3.0

Customer service:

2.5

Read Clare’s full review of Aviva Wealth

Read full review

3.0out of 5

Very high payout rate on life insurance claims
Low-cost in a range of scenarios

4.5/5

Vitality

– Vitality (formerly known as the Prudential) sets itself apart from other providers by offering incentives and rewards for staying healthy.

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Incentives and rewards for staying healthy

point

Highest percentage of life insurance claims paid out in 2023 (99.7%)

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Reasons to use

  • The healthier you are, the lower your premiums stay
  • Highest payout rate for life insurance – 99.7% of claims were paid in 2023
  • Benefits for staying healthy include discounted gym membership, spa breaks and coffees
  • Terminal illness cover is included
  • 5-Star Defaqto rating
  • Maximum age policy can start: 74
  • Fixed term life insurance can provide cover until age 90
  • Waiver of Premium benefit
  • Terminal illness cover included
  • Will cover funeral costs immediately, even when delays hold up the rest of the claim
  • If you add critical illness, it covers up to 174 conditions (including some only Vitality covers)
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Reasons to avoid

  • Premiums will increase if you don’t engage enough with healthy living goals
  • A more pricey option in some of the scenarios we tested
  • Will ask for more medical evidence if you want to add or increase cover (unless you have Guaranteed Insurability options)

Clare says

Vitality offers decreasing, level and increasing Term life insurance runs for a fixed period of time, and is often used to cover a certain period of time e.g. the length of a mortgage. These policies only pay out if you die during the term of the policy.term insuranceinfo, as well as A whole of life insurance policy guarantees a payout. It lasts for as long as you keep paying your premiums and will ensure a set amount is paid to your beneficiaries at the time of your death, whenever that is.whole of lifeinfo. And it has the highest payout rate for life insurance of any of the providers we’ve analysed.

What sets it apart is the Vitality Programme, which rewards customers who show they are taking steps to improve their health and stay active with savings on their premiums and certain benefits. These include discounts with a range of health partners including a smoking cessation service, Fitbits, Apple watches, gyms and wellness spas. By taking steps to look after your health, you can increase your ‘status’. The higher the status you achieve, the greater the discounts and rewards.

So, if you think you can take steps to stay (or get) healthy, then Vitality’s approach could work for you.

Vitality offers a really wide range of products, including decreasing, level, and increasing term life insurance, as well as joint whole of life cover (where your plan stops when one of you dies) and a joint life second death plan, where your plan will stop after both of you have died. If you choose a single whole of life plan, you can also add on LifestyleCare Cover. This allows you to access some or all of your Life Cover if you are unable to look after yourself due to certain covered conditions, and require care. It also offers an optional Waiver of Premium benefit, so if you are incapacitated and unable to work, you won’t have to pay your premium until you’ve recovered.
If you wish to add Critical Illness Cover to your life insurance, then Vitality is a good option. They cover more conditions than any other I’ve reviewed (174), including some that no other provider covers such as pulmonary embolism, rheumatoid arthritis arthritis and some cases of IBS.
Vitality is a signatory to the Protection Distributors Group Funeral Payment Pledge. That means they promise to make an immediate payment of at least £5,000 to cover funeral costs, even when other parts of your valid claim are held up, for example, by probate.

  • Minimum sum insured: £10,000
  • Maximum sum insured: £20,000,000
  • Maximum age for term cover: 90
  • Maximum age cover can start: 74

Scores

4.0/5

LV=

– Liverpool Victoria (now known as LV=) offers decreasing, level and increasing (inflation-linked) term life insurance with some generous extra benefits.

point

Up to £250 worth of eGift vouchers when you join (t&cs apply)

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Reasons to use

  • Up to £250 worth of eGift vouchers when you join (terms and conditions apply)
  • 97% of claims were paid in 2023
  • Free access to LV= Doctor Services
  • Free access to legal advice line
  • Terminal illness cover is included
  • 5-Star Defaqto rating
  • Fixed term life insurance can provide cover until age 90
  • Maximum starting age for a policy: 79
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Reasons to avoid

  • More expensive than some competitors when we tested a range of scenarios

Clare says

Liverpool Victoria (LV=) has been in business since 1843, so they’re a company that’s shown financial security and expertise.

LV= offers decreasing, level and increasing (inflation-linked) term life insurance. Premiums are guaranteed never to change with decreasing and level term insurance, which can provide peace of mind.

In addition, there are plenty of benefits with an LV= life insurance policy. Waiver of Premiums cover is offered, which gives you the option of purchasing an add-on that would cover your premiums if you were off work due to certain illnesses or an accident for more than six months. And there’s free access to legal advice and the LV= Doctor services, which gives the policyholder and their spouse/partner access to five expert medical services within an app.

LV= also offers something called Guaranteed Increase Option (GIO), which means they guarantee that you’ll be able to get more cover without having to answer any further health questions, if you apply within three months of any of the GIO events happening. These include a mortgage increase, getting married, divorced, separated, or having a child. That’s a nice bit of reassurance as life rarely stands still.

It’s also a signatory to the Protection Distributors Group Funeral Payment Pledge, meaning your loved ones can rely on an immediate payment of at least £5,000 to cover funeral costs if you die, even if other parts of the claim are held up by delays.

  • Minimum sum insured: No minimum
  • Maximum sum insured: Maximum not disclosed
  • Maximum age for term cover: 90
  • Maximum age cover can start: 79

Scores

3.0/5

HSBC

– With HSBC you can choose from either a single or joint policy but HSBC only offers level or decreasing term cover.

Attractive pricing in many scenarios
Offers up to £2m of protection

Capital at risk.

check

Reasons to use

  • Paid over 97% of claims in 2023
  • One of the cheapest providers across a wide range of scenarios
  • 5-Star Defaqto rating
  • Includes accidental death benefit for no extra charge
  • Terminal illness cover
  • Accidental death benefit at no extra cost
  • Will cover funeral costs immediately, even when delays hold up the rest of the claim
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Reasons to avoid

  • Cover must end before 80th birthday
  • Maximum age cover can start: 70

Clare says

Across a range of scenarios, HSBC consistently came up as one of the cheapest providers. It paid a good 97% of claims in 2023, meaning it’s not the top performer in this area, but it still pays out a very high percentage overall.

HSBC offers more cover than you’ll find with Aviva – up to £2 million – so it could be a good choice if you need a higher payout, although you’ll only find Term life insurance runs for a fixed period of time, and is often used to cover a certain period of time e.g. the length of a mortgage. These policies only pay out if you die during the term of the policy.term insuranceinfo policies with HSBC, so no A whole of life insurance policy guarantees a payout. It lasts for as long as you keep paying your premiums and will ensure a set amount is paid to your beneficiaries at the time of your death, whenever that is.whole of lifeinfo cover.

HSBC provides terminal illness cover as part of its life policies, providing peace of mind that you’ll be able to receive a payout if you are diagnosed with a terminal illness. It also provides accidental death benefit at no extra cost and is a signatory to the Protection Distributors Group Funeral Payment Pledge. All-in-all, a good offering for reasonable premiums in the scenarios we’ve tested.

  • Minimum sum insured: £10,000
  • Maximum sum insured: £2,000,000
  • Maximum age for term cover: 80
  • Maximum age cover can start: 70

Scores

Fees:

3.0

Trading platform:

3.5

Account opening:

3.0

Research:

5.0

Education:

5.0

Customer service:

4.5

* Wondering whether we get paid for writing good things about platforms? Good question! It’s how many comparison sites get paid.

The answer is – no, we proudly do things a little differently at Investing Insiders. Our sole criteria is what’s best for you – the consumer. So, although we do receive a commission if you choose to click through and open an account from any of our reviews, we will never bend our opinions to suit the requests of providers, or the needs of our bank balance. Bottom line – what you read on this page is what I’d recommend to my family, friends and colleagues, and indeed, what I choose for my own money.

Guide to life insurance


What is life insurance?

A life insurance policy pays out a sum of money to your loved ones if you die while the policy is active. It is intended to ensure that those you leave behind don’t suffer financial hardship as a result of your death.

You’ll need to pay monthly contributions (‘premiums’) to keep your plan active.

What is term life insurance?

Term life insurance provides cover for a specific period of time. It’s often purchased to accompany the term of a mortgage, or to cover the years when policyholders have children depending on their income.

There are different types of term life insurance policies, including:

  • Decreasing: The amount of coverage decreases over the term of the policy. This type of policy is often used by people who have a specific cost they want to cover for their loved ones, such as paying off a mortgage
  • Level: The amount of coverage remains the same throughout the policy term
  • Increasing: Increasing term life insurance is a type of life insurance policy that increases in value over time to help protect against inflation and rising living costs.

What is whole of life insurance?

Whole of life insurance has no end date and guarantees a payout as long as premiums are paid.

What is terminal illness cover?

Terminal illness cover is a type of life insurance that pays out a lump sum if you are diagnosed with a terminal illness and have less than 12 months to live. It’s different from standard life insurance, which only pays out if you pass away during the policy term.

Can I cash in my life insurance?

It depends what kind of policy you have and the terms of that policy. With a term life insurance policy, there is no option to cash-in the policy at any point. It only pays out if you die within the duration of the policy. Some whole of life policies have a cash element, however, which means that some of your premiums are invested, and returns on this investment can be withdrawn or used to borrow money.

How much will I pay for life insurance?

Your premiums (the ongoing payments for your cover) will vary depending on a number of different factors. They include:

  • The type of cover you choose
  • The amount you want your chosen beneficiary/beneficiaries to receive in the event of your death
  • The length of cover
  • Your age
  • Your health
  • Your personal and family medical history
  • Your occupation
  • Whether you participate in any risky activities
  • Whether you are a smoker

Remember: Insurance policies will only provide cover as long as you continue to pay your premiums.

Want to understand more about life insurance? Read our full guide here.

FAQs

Yes, you can have more than one life insurance policy with different providers.

Not all providers require medicals to issue life insurance policies. You will be required to be completely honest about any medical conditions you currently suffer from, or have previously suffered from. Some medical conditions will require a medical examination.

If you and your partner share a joint life insurance plan, and you separate, most providers will allow you to separate the plan into two individual policies.

Insurance policies are only valid as long as you continue to pay your premiums. If you stop, the policy will be terminated. If you are in financial difficulties, however, and struggling to afford your premiums, speak to your insurance provider as there may be alternatives to cancelling the policy. Some providers allow payment breaks, and there may be a possibility of transferring to a cheaper plan that means you don’t lose your cover altogether.

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