Life Insurance

Secure your family's financial future. Affordable protection that pays out when it matters most.

~£18/month

Typical Cost of £250k Cover, Age 35

97.9%

Protection Claims Paid (ABI 2024)

3 in 4

UK Adults Without Life Cover (FCA 2024)

Reasons to Get Life Insurance

Mortgage Protection

Your mortgage is likely your largest financial commitment. A decreasing term policy mirrors your outstanding balance: if you die before it's repaid, your family won't have to sell the family home to cover the debt.

Family Income Replacement

If your income disappears overnight, how would your family maintain their standard of living? A lump sum or family income benefit policy replaces lost earnings so your partner and children can continue with minimal disruption.

Inheritance Tax (IHT) Planning

Estates above the nil-rate band (currently £325,000, or up to £500,000 with the residence nil-rate band) are subject to 40% IHT. A whole-of-life policy written in trust can provide a lump sum to cover the tax bill: meaning your beneficiaries inherit what you intended, not what's left after HMRC.

Written in trust, the payout falls outside your estate and can be available within days: without waiting for probate.

Funeral & Final Expenses

The average UK funeral now costs over £4,000. A modest whole-of-life or over-50s plan ensures your family can give you the send-off you'd want without financial stress at an already difficult time.

Business & Partnership Protection

Business owners and partners can use life insurance to fund a buy-sell agreement: enabling surviving partners to purchase the deceased's share without forcing a fire sale of assets or taking on crippling debt.

Outstanding Debts & Loans

Personal loans, credit card balances, and car finance don't disappear on death: they become a liability for your estate. Life insurance ensures these are cleared so your family inherits assets, not obligations.

Our Plans

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Level Term Insurance

Fixed payment, fixed death benefit over 10-40 years

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Decreasing Term

Benefit reduces over time (ideal for mortgages)

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Family Income Benefit

Monthly income for your family instead of lump sum

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Whole of Life

Coverage that never expires, guaranteed payout

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Waiver of Premium

Premiums waived if you become unable to work

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Family Coverage

Protect multiple family members in one policy

Types of Life Insurance

Life insurance comes in a handful of shapes, and the difference between them matters more than the difference between insurers. Each of these explains what the shape does, who it suits and where it falls short.

Term Life Insurance: Cover for a fixed number of years: the starting point for most families.

Level Term: A fixed payout that does not change across the term.

Decreasing Term: Falls alongside a repayment mortgage, and costs the least.

Increasing Term: Rises each year so inflation does not erode the cover.

Mortgage Life Insurance: Sized to your mortgage, whether repayment or interest-only.

Joint Life Insurance: One policy for two people, and when two singles are better.

Whole of Life: No end date, used mainly to fund an inheritance tax bill.

Over 50s Life Insurance: Guaranteed acceptance with no medical questions.

Why Life Insurance Matters

Protect your loved ones: Ensure your family can pay the mortgage, cover living costs, and maintain their lifestyle.

Affordable premiums: Life insurance is surprisingly inexpensive. A 35-year-old non-smoker can get £250,000 cover for as little as £15/month.

Tax-free payout: Life insurance benefits are paid tax-free to your beneficiaries.

Final wishes: Cover funeral costs and outstanding debts so your family isn't burdened.

Example Scenarios

The following are illustrative examples only. They do not represent real clients or actual cases. Individual policy terms, eligibility and outcomes will vary.

Illustrative example: young family, mortgage protected

Young family: mortgage and income protected

Tom and Jess took out joint life insurance when they bought their first home aged 31. Three years later, Tom was killed in a road accident. The decreasing term policy cleared their £220,000 mortgage in full. A separate family income benefit policy then paid Jess £1,800/month for 20 years: allowing her to stay in the family home and maintain stability for their two young children.

Illustrative example: estate planning, IHT bill covered

Estate planning: IHT bill covered in full

Margaret, 68, had an estate valued at £900,000: well above the nil-rate band. Her financial adviser calculated a potential IHT liability of over £200,000. A whole-of-life policy written in trust was arranged for exactly this amount; the premium was paid from income and the payout, falling outside the estate, was available within days for the beneficiaries to settle the tax bill.

Illustrative example: business protection, partnership bought out

Business protection: partnership bought out smoothly

Two business partners each took out cross-option life insurance policies. When one partner died unexpectedly, the surviving partner received the insurance proceeds and used them to buy the deceased's share from the estate: ensuring the business continued, the deceased's family received fair value, and no fire sale of assets was necessary.

How Much Cover Do You Need?

A common starting point is 10x your annual income: though the right amount depends on your outstanding debts, your dependants' needs, and how long you'd want income replaced. Baker Hudson Health will guide you through a proper needs analysis before comparing quotes.

For mortgage protection, the cover should at minimum match your outstanding balance. For family income protection, consider how much your partner would need per month and for how many years. For IHT planning, the calculation is based on your estimated estate value and applicable nil-rate bands.

Cover needs calculator

Your circumstances

Rough figures are fine. You can refine everything with an adviser later.

Annual income (before tax) £40,000

Years of income to protect 10 years

How long would your family need your income replaced for? Many people choose until their youngest child is financially independent.

Outstanding mortgage balance

Other debts (loans, credit cards, car finance)

Dependent children

We'll assume roughly £25,000 towards education & childcare costs per child. Adjust below if needed.

Existing life cover already in place

Include any death-in-service or existing personal policies. This reduces what you need to add.

Your estimated cover

Based on the DIME method

Recommended cover amount

£683,000

Debt (other debts) £8,000

Income replacement £400,000

Mortgage £220,000

Education & childcare (per child) £50,000

Less existing cover −£0

No obligation. An adviser will talk through the right level and type of cover for you.

Assumes £25,000 education & childcare provision per dependent child.
This is a guide only, not financial advice, and doesn't replace a full review with an adviser.

How Much Does Life Insurance Cost?

Life insurance is often surprisingly affordable. Some examples of what healthy non-smokers can typically expect:

Age 30, £250,000 level term, 25 years: from approximately £12–18/month

Age 40, £200,000 level term, 20 years: from approximately £20–30/month

Age 50, £150,000 level term, 15 years: from approximately £40–60/month

Smokers, those with existing health conditions, or higher-risk occupations will pay more, and some may need specialist underwriting. Baker Hudson Health has access to the full market including specialist medical underwriters: and we will help manage any underwriting disclosures to get you the best possible terms.

Frequently Asked Questions

A common starting point is 10x your annual salary, though the right amount depends on your mortgage, dependants, and how long you'd want income replaced. Baker Hudson Health will do a proper needs analysis: factoring in your debts, your partner's income, childcare costs, and your estate position: before recommending a sum assured.

Level term keeps the payout the same throughout the policy: good for income replacement or inheritance tax planning. Decreasing term reduces over time, mirroring a repayment mortgage. Decreasing term is cheaper but only appropriate where the liability reduces alongside it. Baker Hudson Health will recommend the right type for your specific needs.

In most cases, yes. Writing your policy in trust means the payout bypasses your estate entirely: it is not subject to inheritance tax and is paid to beneficiaries without waiting for probate, often within days. Baker Hudson Health arranges the trust documentation as part of the policy setup at no extra charge.

Often yes, though premiums may be loaded or specific conditions may be excluded. Some conditions result in a clean acceptance: it depends on the condition, its severity, and how well-controlled it is. Baker Hudson Health works with specialist medical underwriters to get the best possible terms, including for conditions such as diabetes, high blood pressure, or a history of cancer.

Instead of a lump sum, family income benefit pays a regular monthly income to your dependants for the remainder of the policy term. For young families, it can be more practical than a large lump sum: your partner receives money monthly at the rate they need, rather than having to manage a large sum. Baker Hudson Health can show you both options side by side.

Why Baker Hudson Health?