Life insurance

Our mission is to help make pensions simple so that everyone can look forward to a happy retirement. Finding the right life cover can help you save towards your retirement more confidently knowing you and your loved ones are protected should life throw the unexpected at you, such as being unable to work due to injury, being diagnosed with a critical illness or you pass away.

Upon your death your pension will usually go to your beneficiaries, however, its value may not be enough to cover any outstanding costs you leave behind which your family may be financially reliant on you for, such as mortgage payments. So, whilst a pension will help meet your costs in retirement, life insurance can help protect your loved ones from facing financial difficulties should you pass away unexpectedly.

We’ve partnered with LifeSearch so you can help protect the most important people in your life, providing peace of mind should the unexpected happen.

If you use the LifeSearch service following a PensionBee referral, we’ll make a commission after you buy a product, however, this doesn’t have any impact on the cost of the product to you. LifeSearch’s service is fee-free for you to use, and you’ll get the same or a better deal than going direct.

You can link your life insurance policy to the cost of living, so it holds the same buying power over time.

For example, £100,000 represents significant buying power today but due to inflation and rising living costs, it won’t have the same buying power in 10, 15 or 20 years. Indexation ensures your pay-out keeps the same value, or buying power, over time, but your monthly premiums will increase too.

A single policy’s simple. It’s where you’re the only policyholder and, when you die, the money goes to your beneficiaries if you have life insurance cover or if you’re diagnosed with a critical illness a lump sum can be paid out to you.

Joint life insurance’s different. It’s kind of like a two-in-one life insurance policy, so it’s usually more affordable than two single policies.

A joint policy will only pay out once, however, so if Partner A dies the lump sum is paid to Partner B and that’s the end of the policy. Partner B will have to take out another policy if they’re to protect themselves again.

In days past, having a medical condition could be a blocker to getting life cover. That’s much less the case now.

Whether your medical condition will increase your premium depends on what type of condition it is, how serious it is, and your general health otherwise.

At one end of the scale, if you have asthma but you control it well and haven’t had an attack in a specified period of time, it probably won’t raise your premiums much, if at all. At the other end, a serious heart condition could push your premiums up or could make finding cover more challenging.

But the important thing is to try. There are dozens of mechanisms in place to get cover for people who have health issues. The life insurance industry’s much more understanding of conditions such as HIV, diabetes, and heart and lung issues. Some specialist insurers base their whole business on covering people with health challenges.

There are options. Speak with an expert adviser about it today to find out more.

In 2020, life insurance claims were paid out in over 97% of cases, according to the Association of British Insurers (ABI). When claims aren’t paid, it’s usually because the policyholder gave inaccurate, or even dishonest, information when describing their health or lifestyle.

Whilst you won’t be around to see your life insurance claim when you die, LifeSearch can support your family in making a claim.

LifeSearch was one of the first UK intermediaries to set up a dedicated claims team, and today it’s a well-oiled machine. The team helps you with the paperwork and liaises with the insurer so your loved ones don’t have to.

They’ll keep the relevant people updated on any progress as LifeSearch aims to resolve claims and unlock payouts as quickly as possible.

Most life insurance and critical illness insurance pay-outs are usually made free from income tax or capital gains tax. However, payouts may still be subject to inheritance tax.

Upon the death of a policyholder, any payouts will form part of the deceased’s estate. If the total value of the estate exceeds the inheritance tax threshold, then inheritance tax will be deducted from the payout before it’s passed on to the beneficiary named on the policy.

One way to avoid paying inheritance tax on life insurance payouts is by putting it into a trust. This should lock it outside of the probate process and your loved ones should start receiving payments more quickly.

A trust can also help reduce, or in some circumstances, prevent inheritance tax fees - up to a certain amount. See below for further information.

A LifeSearch expert can tell you more about putting your policy in trust and put you in touch with your insurer when you’re ready.

It’s basically a tax on a deceased person’s estate (it’s the total of property, savings and other personal belongings minus debts and expenses). The magic number in the UK right now is £325,000 for 2023/2024. If the estate’s worth less than that, no tax will be due. But every £1 above that £325,000 threshold is subject to a 40% inheritance tax. The threshold is higher for married couples and can be up to £650,000.

LifeSearch started back in 1998 when its founder believed insurers put their own needs above the needs of the customer. It’s grown its business on a mission of doing right by the customer since day one.

LifeSearch’s here to help. The team’s job is to know the market and advise you on the policies that are best suited to your needs.

But there’s no obligation, no selling. You’re in control.

With LifeSearch you can search online, or speak with an expert adviser today.