Review of Barclays Life Insurance

Barclays life insurance packages are open to everyone, not just Barclays account holders. They offer two different insurance types: standard Barclays life insurance and mortgage protection insurance. Both of these policies are term based policies, and the mortgage holder option can be taken out with level term or decreasing cover.

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  • Lump sum awarded to family upon death.
  • Options of level term or decreasing cover with mortgage cover
  • Cover available up to £500,000
  • Premiums start at £6 a month
  • Cannot cash in the policy
  • No joint policies with standard life insurance
  • Standard life insurance does not come with terminal illness cover
  • Critical illness cover has to added as an extra

About Barclays

Barclays plc is one of the world’s largest and oldest multinational banking and financial services companies. It was founded in 1690 and now operates in over 40 countries. They offer a broad range of different types of insurance and two different options, both provided through Aviva.

While the policies aren’t overly customisable, they have competitive premium rates and the option of up to £500,000 of cover.

Insurance Options: Our Honest Breakdown

Barclays doesn't have the biggest range of life cover packages on the market. Nonetheless, there’s no doubt that they can provide suitable coverage for most people between the ages of 18 and 68. The Barclays insurance for Mortgage Holders policy has a 5 star Defaqto rating and is definitely the better of the two policies on offer.

Barclays' life insurance policies are awarded by Aviva. They are both term life cover policies, you can’t get whole life protection or over 50s policies through Barclays. Both policies have no cash-in value, which means you won’t get a payout should you live beyond the term agreed when you take out insurance.

Homeowners can also take advantage of the free advice service. This is aimed at helping those with mortgages gain the best level of cover to ensure your family’s future is protected. Barclays life insurance also offers a 30-day period where you can cancel the plan and receive a refund of the first month’s premium.

Barclays’ insurance policies carry age restrictions. UK applicants must be between the ages of 18 and 68 while all plans end before your 70th birthday. Critical illness cover can be added to each plan at extra cost, and Barclays will pay out on self-injury and suicide as long as this isn’t within the first year of the policy.

Barclays life insurance starts at a very affordable £6 per month, which will cover you for around £35,000 on a 40-year plan. This increases with a shorter term plan, with a 20-year plan offering a payout of around £68,000. With the latter plan, you’ll be looking at £19.94 per month to gain the maximum £500,000 payout coverage.

Aviva paid out on 98.9% of their claims in 2015. Therefore you can be confident that the family will gain those benefits in the event of your death.

Here’s a summary of the two policies offered by Barclays:

Standard Barclays Life Insurance

The first option is Barclays Life Cover, which is a level term policy. Level term life cover from Barclays offers a set payout regardless of how far into the term you are when death occurs. For example, if you’ve covered your life for £250,000, that’s the payout your family will get whether you died in 12 months or 12 years.

Barclays Life Insurance

  • Premiums start at £6 a month and maximum cover is £500,000.
  • This is a level term insurance policy, so your premiums and cash benefit stay fixed throughout the term.
  • Will not cover self-inflicted injury or suicide within the first 12 months of the policy.
  • Does not include terminal illness cover.
  • You can make changes to the length and amount of cover after taking out the policy.
  • Available for UK residents aged 18-68 and cover must end before your 70th birthday.
  • Cannot get joint cover
  • Can take out critical illness cover at extra cost.

Insurance for Mortgage Holders

The other policy offered by Barclays is designed for people to offset their mortgage with life cover. Your mortgage doesn’t have to be with Barclays to take out this insurance, and the policy can be taken out either as either level term or depreciating cover.

With level term you premiums and cash benefit will stay the same throughout the length of the policy. The depreciating cover is designed to cover a debt that decreases over time, like your mortgage: your premiums will be fixed but the amount of cover will decrease at the same rate as your mortgage.

Unlike the standard Barclays Life Insurance policy, Barclay's cover for Mortgage Holders comes with terminal illness cover, meaning you can get your policy to pay out early if diagnosed with a condition that means you’re not expected to live more than 12 months. You can also add critical illness cover to the policy for an additional cost.

Barclays Options for Mortgage Holders

  • Premiums from £6 a month.
  • Can choose between level term and decreasing cover.
  • Legal & General will cover you from when they receive your application form for up to 90 days or until they accept, postpone or decline your application.
  • Terminal illness cover included.
  • 5 star Defaqto rating.
  • Can add critical illness cover for extra cost.
  • Joint cover available but policy only pays out once.

Barclays Critical Illness Insurance

Critical illness isn’t automatically covered by all standard plans at Barclays. But applicants can focus on plans with these features added. There is a list of 40 critical illnesses covered by the home insurance plans, and these can be found in the terms and conditions.

This option gives you an extra level of coverage, although you’ll still only be covered during the term of the agreement. On a separate note, it may be necessary to prove that the condition wasn’t pre-existing before the claim will be accepted.

Barclays Life Insurance: Conclusion

Barclays life insurance plans are suitable for anyone aged 18 to 70, and the Barclays cover for Mortgage Holders is certainly the better policy. The lack of terminal illness cover or ability to take out a joint policy with the standard Barclays Life Insurance policy means you’ll probably find a better deal elsewhere if you aren’t looking to cover a mortgage. is in no way associated, partnered nor affiliated with Barclays Bank PLC or Barclays Bank UK PLC. Our editorial reviews are the opinion of the Editors at