The Importance of Life Insurance in 2025 |

What is Life Insurance?

Life insurance is a policy that pays out a tax-free lump sum to your loved ones if you pass away during the term of the policy. It’s one of the most essential forms of financial protection you can put in place, especially if you have a mortgage, children, or dependents who rely on your income.

At Drummonds Finance Group, life insurance isn't just about money—it's about giving your family peace of mind and financial security, even when you’re no longer around.

🎯 Want tailored life insurance advice? Speak to an expert today

Why Life Insurance is Essential in 2025

With the rising cost of living, mortgage debt at an all-time high, and families relying on dual incomes, life insurance is more important than ever. It’s not just about covering funeral costs—it’s about replacing lost income, paying off debts, and maintaining your family’s quality of life.

Consider this:

• The average UK mortgage is now over £200,000

• A basic funeral can cost £4,000–£6,000

• Raising a child to age 18 costs over £160,000

✅ Life insurance ensures your family doesn't face financial hardship if the worst happens.

Who Needs Life Insurance?

You should strongly consider life insurance if:

• You have a mortgage

• You have children or dependents

• Your partner relies on your income

• You're a business owner

• You want to leave a legacy or cover inheritance tax

🎯 If someone depends on you financially, life insurance is a must.

Types of Life Insurance

1. Level Term Life Insurance

• Pays a fixed lump sum if you die within the policy term

• Ideal for covering a mortgage or providing for your family

2. Decreasing Term Life Insurance

• Payout reduces over time, often aligned with a repayment mortgage

• More affordable than level term

3. Whole of Life Insurance

• Covers you for your entire lifetime

• Usually used for inheritance planning or funeral costs.

4. Family Income Benefit

• Pays a monthly income rather than a lump sum

• Helps replace lost earnings over time

✅ At Drummonds, we help you choose the right type based on your needs and goals.

How Much Cover Do I Need?

There’s no one-size-fits-all answer. A good starting point is to consider:

• Your outstanding mortgage

• Debts and credit cards

• Monthly living expenses

• Children’s education costs

• Funeral and legal costs

💬 Our advisers will calculate the right cover for your unique situation.

How Much Does Life Insurance Cost?

Premiums depend on:

• Your age

• Health and medical history

• Smoking status

• Type and amount of cover

• Policy term

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Example costs (2025):

• £150,000 cover for a healthy 30-year-old non-smoker could cost £6–£10/month

• £250,000 cover for a 40-year-old may cost around £15–£25/month

✅ Life insurance is more affordable than most people think.

Common Myths About Life Insurance

❌ “I’m too young to need life insurance” – In fact, younger = cheaper premiums

❌ “It’s too expensive” – Many plans cost less than your Netflix subscription

❌ “I have work cover” – It often isn’t enough and ends when you change jobs

✅ We bust the myths and help you get cover that truly protects your family.

Can I Get Life Insurance With Health Issues?

Yes. While pre-existing conditions can impact premiums, many UK insurers offer specialist policies for people with:

• Diabetes

• High blood pressure

• Mental health history

• Past cancer or serious illness

🎯 We work with insurers who consider real-life health scenarios and offer fair terms.

Do I Need Life Insurance If I’m Single or Child-Free?

It depends. If you:

• Have a mortgage

• Want to leave money to family or a charity

• Want to cover funeral or inheritance costs

Then life insurance still makes sense. You don’t need to have children to want to protect what you’ve built.

✅ Our advisers help you decide based on your life stage and goals.

Real-Life Client Story

Emma and Tom, first-time buyers in Oxford, took out a joint level term policy when buying their home. Tragically, Tom passed away unexpectedly from a heart condition. Their policy paid out £250,000, clearing the mortgage and giving Emma financial breathing room during the hardest time of her life.

✅ It meant she could stay home and focus on healing, not debt.

Why Choose Drummonds Finance Group?

✅ Access to 20+ top UK insurers

✅ Independent, tailored advice

✅ No pushy sales — just protection that fits your life

✅ Trusted by homeowners, families, and professionals across the UK

📞 Get your personalised life insurance quote ➡️ Book your consultation

Disclaimer: Life insurance policies are subject to underwriting, eligibility criteria, and policy terms. Always speak to a qualified adviser.