What is life insurance?

Life insurance a simple way to protect your loved ones should the unexpected happen. Essentially, it’s a contract between you and an insurance provider. You pay regular premiums, and, in return, the insurer pays out a lump sum to your beneficiaries if you pass away during the term of the policy. Your family can then use this payout to help cover funeral costs, as well as living expenses, household bills, mortgage payments, childcare costs and maintain their way of life, even when you’re not around.

Mortgage life insurance is a type of cover designed to pay off your mortgage if you die during the term of the policy. This can help ensure that your family can keep living in the home without having to worry about making mortgage payments. The payout will decrease over time in line with your mortgage balance.  

Term life insurance provides cover for a specific period, such as 10, 20 or 30 years. If you pass away during the term, your insurance provider will pay a lump sum to your loved ones. 

Whole life insurance, or life assurance, covers you for your entire lifetime, as long as you pay your premiums. Whole life policies also have a cash value component which grows over time.

Yes, you can have more than one life insurance policy. People often take out additional policies to cover their specific needs, such as a mortgage, personal loans or to provide their family with extra financial support. If you choose to take out multiple policies, you need to make sure that you can afford the combined premiums, if the policies are arranged with the same provider, you must also not exceed the maximum cover amount. But remember, there are different types of life cover to choose from, and you have the option to add additional extras to most policies. This means that you could find that taking out a single policy covers your needs.

Yes, Post Office Over 50s Life Cover is a simple way to leave your loved ones a cash sum gift to settle unpaid bills or help pay for your funeral when you die.

If you’re aged 50 to 80 and a UK resident, you can get cover in place straight away. Just choose how much cover you’d like to leave behind. Depending on your age at the time of your application, you can choose an amount up to £10,000. 

We won’t ask about your health when you apply for an Over 50s policy.

Life insurance premiums depend on various factors to assess the risk of insuring you and set your premiums. This includes your age, health and medical history, lifestyle factors, the amount of coverage you need and the type of policy you choose.

If you miss a payment, your insurance policy could lapse, meaning you wouldn’t be covered on your policy. Some providers might offer a grace period or options to reinstate a lapsed policy, but this depends on the insurer. You should always speak with your provider if you’re about to or have missed a payment.  

To make a claim on a life insurance policy, beneficiaries need to:

• Tell the insurance provider that the policyholder has passed away
• Provide them with the death certificate and policy information
• Fill out any forms the insurer needs for the claim

The insurer will then review the claim and, if it’s accepted, pay out to the beneficiaries. 

If you outlive your term life insurance policy, it simply ends without a payout. You can extend the policy term before it ends, convert to whole life, if it's offered by your provider, or get a new policy. Remember to review your insurance needs as the term nears its end and check with your insurance provider.