Level Term Life Assurance is the cheapest way to protect your family’s income if the worst happens. The somber statistic is nearly one child in 20 loses a parent before they’ have finished full time education. This is a step-by-step guide to getting term insurance to cover your family at the lowest possible cost; saving you £1,000s and often much better by 40% than even the largely advertised best buys.


The UK’s Cheapest Policies

Life assurance prices change every day, therefore there’s no single ‘best-buy insurer’; yet there are ‘best buy brokers’. The way to get policies even cheaper than going direct is to use the niche ‘execution only’ brokers, who give you the commission, and instead you just pay a small fee, and as such you get identical policies but at a much, much lower price.
Having surveyed over 20 insurers for a range of quotes, there are three which are always competing to be cheapest; best practice is to use all three. Remember all quotes are based on a healthy person so your price may go up if you have any health issues. Always check the full terms of the policy meet your needs before you buy.

Cavendish Online

Cavendish Online pioneered giving up all its commission in return for a one-off fee; £35 for online application or £45 on the phone and can make it over 50% cheaper than most full-commission brokers. It offers two quotes, the ‘fee’ and ‘fee-free’ option; always choose to pay the fee, the monthly saving eat up the cost of the fee in just a few months. The commission option is only worth considering if your monthly premiums are under £7 a month.

MoneyWorld


This is a firm of independent financial advisers that provides life insurance for a flat fee of £25 and no commission, either online or on the phone. It has been around a while but recently moved to the ‘one off fee’ practice and lowered its prices and is often the cheapest of the top three.

Life Insurance Online

This a small broker firm that also charges a £35 fee and no commission. It’s out there to match Cavendish’s prices and seems to do it quite regularly.

Other brokers you could consider are Asda, Direct Life, Life Assure Online, Life Direct, Life Saver, Lifesearch, MoneyBackMortgages, Sainsburys, Tesco, The Idol, TQ Online, More Than, AA, Legal and General, Marks and Spencer, Post Office, Egg.

Direct Sellers

All brokers cover the same main life assurers, but they don’t include the direct sales policies from the likes of Tesco, Direct Line or Sainsbury. Yet their prices are consistently more expensive than the cheapest brokers.

Advisory service

Make sure you ask for the advisory service if you want it, because some providers do execution policies as well. The biggest and most well known advisory broker is Lifesearch, yet it is usually undercut by TQ online and Life Assure Online.