Considering buying Life Insurance but feeling unsure of what you need to know or how to go about securing a policy? For life insurance newbies, the process can be confusing to say the least. Knowing what’s what when it comes to the many misconceptions around taking out a policy is frustrating at times.
We've put together a quiz so you can see how many of these myths and misconceptions you can spot:
We wanted to know just how much of a grasp people really have on life insurance facts – so, we ran a nationally representative survey on life insurance myths with 2000 UK adults. The survey showed some surprising figures. For instance, only a third (33%) of our respondents feel they know enough about life insurance. A further 31% say life insurance is a taboo subject that isn't talked about enough within their family.
What’s more is 54% of UK adults don’t have any life insurance in place. 18% of respondents (that’s almost 2 in 10) who don’t have life insurance say it’s because they haven’t given it any thought! So maybe it’s time to get thinking... and that’s where we can help. We’re here to clear up any concerns you have before you get serious about taking out a policy.
We’re all about being transparent and we aim to cut through the nonsense, giving you straightforward answers to complicated questions. Life insurance is a big financial commitment after all and more importantly, it’s there to help protect the ones you love - so you need to get it right. But what are some common concerns around taking out a life insurance policy?
According to our survey, here are the Top 10 Reasons Why People Don’t Have Life Insurance:
Our survey found that 32% of Brits who don’t have life insurance say it’s because they can’t afford it. It’s no wonder you may be under the impression that life insurance is too expensive but here’s why you could be wrong: when you buy life insurance with Smart Insurance, you choose a policy and a rate of monthly premiums that works for you. Once you calculate how much cover you need and how much you can afford to pay each month, you could comfortably fit Life Insurance into your budget.
We offer flexible rates to suit just about any budget. Smart Guaranteed Life Insurance cover starts from just £3.57* per month. This is based on an individual policy for a 30-year old with £2,000 of cover. If you pass away as a result of an accident, the policy will pay out 3 times that amount so in this case, your loved ones would receive £6,000.
Our Smart Family Life Insurance cover starts from just £6.89 for a 32-year-old non-smoker with £100,000 of cover. With it, you're covered from day 1 (except if death is the result of self-inflicted injury in the first 12 months) and you’ll have 100% benefit paid in advance in the event you are diagnosed with a terminal illness.
Here’s what you can apply for with Smart Family Life Insurance depending on your age:
| Benefit amount | Age at policy start date |
| £60,000 to £750,000 | From age 18 to 44 |
| £60,000 to £400,000 | From age 45 to 54 |
| £60,000 to £250,000 | From age 55 to 59 |
| £60,000 to £150,000 | From age 60 to 64 |
Here’s what you can apply for with Smart Guaranteed Life Insurance depending on your age:
| Benefit amount | Age at policy start date |
| Up to £20,000 | From age 30 to 54 |
| Up to £17,000 | From age 55 to 59 |
| Up to £13,000 | From age 60 to 64 |
Up to £12,000
Up to £9,000
Up to £6,000 | From age 65 to 69
From age 70 to 74
From age 75 to 80 |
If you want to start putting protection in place for your family, why not contact us to get your quote today?
7% of those we surveyed said that they don’t have life insurance because it’s all too confusing. Don’t let financial jargon and complicated terminology stop you from putting some financial protection in place for your family. Life Insurance is there to help protect the ones you love, so it’s vital that you get it right. If you’re worried that choosing the right policy type, term or benefit amount is too confusing, check out our life insurance policy decision guide.
| Family Life Cover | Guaranteed Life | |
| Age Range (starting) | 18 - 64 | 30 to 80 |
| Max. Benefit | £60,000 to £750,000 | £2,000 to £20,000 |
| Medical Required | No | No |
| Single Or Joint Plan | Single only | Both allowed |
| Accidental Death Benefit | Up to £650,000 optional cover available | X3 benefit amount from start |
| Non-Accidental Death Benefit | From start | Available after 24 months |
| Level Premium | Fixed Term, 10-40 years | For duration of policy |
| Age-Based Premium | 5% increase each year for first 10 years | For duration of policy |
| Optional Children’s Cover | £10,000 to £30,000 | Not available |
| Optional Critical Illness Cover | Up to 50% of full benefit amount | Not available |
| Cash-In Value | Not Available | Not Available |
It doesn’t matter how healthy you are now, life is unpredictable, and things can change in the blink of an eye. We rarely expect to receive a life-threatening diagnosis and we never think that we’ll fall victim to a serious accident. That’s probably why 6% of those we surveyed stated that they don’t have life insurance because they’re fit and healthy. The point of life insurance is to make sure that your loved ones have some financial protection in place should something happen to you unexpectedly. It helps you prepare for the worst-case scenario, allowing things to carry on following the loss of a partner, spouse or parent.
We also offer optional Critical Illness Cover which pays a benefit amount to you while you’re still alive should you fall ill with a defined serious illness (including cancer – excluding less advanced cases, coronary artery bypass grafts – with surgery to divide the breastbone, heart attack – of specified severity, or stroke – resulting in permanent symptoms).
Our survey showed that 27% of those who don’t have life insurance say it’s because they don’t have any financial commitments such as a mortgage, car loan, or debts. But a life insurance benefit can mean so much more to your family than keeping up with utilities or unpaid loans. Life insurance could give your loved ones the opportunity to maintain a familiar lifestyle if you pass away. Family life, with all its ups and downs, laughing, arguing, overflowing laundry baskets, and taking care of grazed knees, is all about celebrating the ordinary moments.
Life insurance can also be used to help cover funeral costs which now stand at an average of around £4,000.
If you’re a stay-at-home parent or you earn a lot less than your partner or spouse, you might feel as though you don’t need life insurance. In fact, 8% of those we surveyed stated this as their reason for not having any life insurance in place. If this is the case, then you could be mistaken. If you pass away, would your partner have to pay for childcare costs or hired help? Would they struggle to keep up with mortgage or loan repayments? Could your family still afford a trip to the zoo or the cinema on Saturdays?
Even if you’re not the primary breadwinner, you still make a significant contribution to the lives of your family and your household.
It’s also important to consider the potential costs associated with recovering from a serious illness. Critical Illness cover pays a benefit amount to you if you suffer a defined serious illness. This can help with the cost of recovery and keeping things afloat while you’re unwell.
11% of those we surveyed don’t trust a life insurance policy will pay out. Here’s why you can count on Smart Insurance to help you protect the ones you love:
Our Life Insurance policies are paid out 99.38% of the time***. With our Family Life policy, you are covered from day 1 for death as a result of an accident, death by any cause (except for intentional self-inflicted injury in the first 12 months), and terminal illness (the full benefit amount paid in advance if you are diagnosed as terminally ill by a medical specialist with less than 12 months to live).
With our Guaranteed policy, you’ll get immediate cover for accidental death, and cover for death by any cause after just 24 months.
We’re proud to say that Smart Insurance came out on top of Fairer Finance’s latest customer experience ratings for life insurance in 2023. Fairer Finance ratings are designed to help customers make informed decisions when it comes to financial service products. Just another reason why you can trust Smart Insurance to help protect what matters most.
We’re also a Feefo Platinum Trusted Merchant, based on independent customer reviews, having achieved a Platinum Award for 2023.
We make it easy for your loved ones to make a claim, making sure they have a helping hand when they need it most. All you must do to make a claim is call 0800 4586901. Our UK based team is available Monday to Friday 9am to 7pm (excluding bank holidays). Alternatively, you can email claims@smartinsurance.co.uk.
If you believe that it’s not quite the right time to take out life insurance, you could be wrong. You may think you’re too young or too old to bother. The truth is, taking out a policy while you’re younger could help you secure a cheaper rate of premiums. It could also make sense to take our cover earlier since your situation could change over the years. Even if you don’t have kids or a mortgage just yet, wouldn’t it be nice to know as you reach different milestones over the years, that you have some protection in place for your loved ones? You can apply for our Family Life Insurance if you’re a UK resident aged 18 to 64.
Likewise, you may worry that you’re too old to get life insurance. You are guaranteed acceptance with our Smart Guaranteed policy if you’re a UK resident aged between 30 and 80.
You may no longer have any dependents and you might have paid off any outstanding loans already. In this case, you could think about leaving a cash gift behind for your loved ones or helping cover the cost of your funeral.
No two policies are the same. In fact, policy details vary greatly across different providers. We’ll help you make an informed decision and help you every step of the way with honest, reliable and easy to understand information.
We offer two different policy types so that you can feel confident that you’ve secured the right level of cover for you and your loved ones with Smart Insurance. Here’s how we compare with our competitors.
Some employers offer Death in Service which is a form of life insurance provided by your employer for free or for a reduced cost. Our survey showed that 4% of participants did not have life insurance because of their employer-provided insurance.
There are however issues with this type of cover. If you leave your job, for instance, you could lose your cover. Your employer could also decide to pull the benefit at any time. The benefit is often four times your salary but the benefit amount available may be limited meaning it could fall short in some circumstances.
With Smart Insurance, you could secure a benefit amount of up to £750,000 depending on your age at your policy start date with our Family Life policy. Or you could secure up to £20,000 worth of cover depending on your age with our Smart Guaranteed policy.
You won’t have to take a medical exam or share medical records with Smart Insurance. You will however be asked a series of health and lifestyle questions during the application process for our Smart Family Life policy. This will help us to determine your eligibility for your desired policy. So, if you’re anything like the 3% of participants who said they don’t have life insurance because they think they will need to take a medical exam, you might be surprised to hear that this isn’t the case with Smart Insurance.
With Smart’s Guaranteed life insurance, you are guaranteed acceptance if you live in the UK and are between the ages of 30 to 80 - we won’t ask any health or medical questions. It’s as simple as that.
We hope that we’ve helped clear things up, making things a little easier for you. We aim to leave no stone unturned when it comes to answering your life insurance questions, so if there’s anything else you’d like to know, don’t hesitate to pick up the phone and speak directly with a member of our team. We’re happy to answer any other questions you might have.
* For a 30-year-old, on an individual policy with £2,000 of cover
** For an 18-year-old looking for £60,000 of cover. Subject to health & lifestyle questions
*** Smart Insurance products are provided by Scottish Friendly, who approved and paid 99.38% of all life insurance claims received in 2022.
The ‘Insurance Myths’ survey was conducted by OnePoll on behalf of Smart Insurance. It was carried out from 25/01/21 - 28/01/21 and 2000 nationally representative UK adults were surveyed. OnePoll are members of E.S.O.M.A.R. and employ members of the M.R.S.
