Life Insurance FAQs
How much life insurance do I need?
The DIME method adds Debts + Income replacement (annual contribution × years needed) + Mortgage + Education per child, then subtracts what you already have: existing policies, death-in-service, savings. Rules of thumb like 10× salary land nearby for young families · DIME just shows the working, which helps you buy the right amount rather than a round number.
Level or decreasing term?
Level term pays the same sum throughout; decreasing term shrinks in line with a repayment mortgage and costs notably less. The classic structure: decreasing cover matched to the mortgage + level cover for family income · which is exactly what this calculator's suggested split reflects.
Should the policy be written in trust?
Almost always. In trust, the payout skips probate (weeks instead of months), goes exactly where you intend, and sits outside your estate for Inheritance Tax · protecting up to 40% of it in larger estates. Insurers set up trusts free at application; with pensions entering estates for IHT from April 2027, this matters more than ever.
Does death-in-service replace life insurance?
Partially, temporarily. Typical schemes pay 2-4× salary, but the cover evaporates when you change jobs, and it is rarely enough for a family with a mortgage. Deduct it from your need (as this tool does) rather than treating it as the plan.
How much does cover cost?
Less than people guess: a healthy 30-year-old might pay £10-£15/month for £250,000 of 25-year level term. Age and smoking drive price · smokers pay roughly double · so locking cover in early and reviewing at life events (house, kids) is the cheap strategy.
For informational purposes only · A needs estimator, not advice or a quote · Speak to a broker or adviser for products and pricing · Writing policies in trust has legal effects · take guidance when setting one up