Review of Lloyds Bank Life Insurance

Lloyds bank refers to the life insurance policy they offer as My Life Insurance. Policies taken out with Lloyds are available to UK residents aged 18-60 and are arranged through Scottish Widows, which is also part of the Lloyds Banking Group.

The cover provided by Lloyds is term life cover with no cash-in value. It can be taken on either a level term basis or else with the amount of cover decreasing over time. Quotes can be obtained online or in any Lloyds Bank branch. We’ll take you through all the ins and outs.

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Pros
  • Can get level or decreasing cover
  • Affordable premiums
  • Terminal illness cover
  • Available up to age 60
  • Maximum cash benefit of £500,000
Cons
  • Can’t be changed once set up
  • Only one policy so not much choice

About Lloyds Bank

Lloyds Bank has been in business since 1765, making it one of the planet’s oldest banks. It was set up in Birmingham and was named after local iron dealer Sampson Lloyd II. As for Scottish Widows, who handle Lloyds life insurance, this company was formed in Edinburgh in 1812. It was created in an effort to help widows and other people who had lost loved ones in the Napoleonic Wars.

Both of these companies are highly regarded and fully regulated in the UK. Lloyds is one of the UK’s Big Four clearing banks, while Scottish Widows is regularly rated among the most trusted life insurance providers in the UK.

As well as term life insurance, Lloyds Bank also offers a wide range of different insurance policies and banking products. Scottish Widows sells different types of insurance and financial services directly and through brokers, as well as through Lloyds Bank.

Lloyds bank life insurance: our honest breakdown

Anyone in the UK between 18 and 60 years of age can take out a Lloyds Bank life policy. While existing customers of the bank are most likely to be offered this cover, anyone can get a quote and take out a policy if it suits them.

The basic choice to be made when taking out life insurance from Lloyds Bank is between decreasing and level cover. This simply means that the cash benefit of your policy either stays the same or goes down each year, with the latter being a more affordable approach.

Both of these options are term life policies, meaning that they will only pay out upon death or diagnosis of critical illness within the set term of the policy. If you survive beyond the set term, the policy will not pay out.

The maximum amount of cover that can be taken out is £500,000, and monthly premiums are based on factors such as your age, the length of the term, the size of the cash benefit, your health, and whether the cover is set to decrease over time or not.

Lloyds offer a 30 day cancellation period, which means that any premiums paid in the first 30 days are returned to you if you decide not to go ahead with the policy after all.

Here’s a breakdown of the specific policy offered by Lloyds Bank:

My Life Insurance

This is Lloyds bank’s only life insurance policy. It includes terminal illness cover as standard, but has no option to add critical illness cover. You must be aged 18-60 to take out a policy and once you have signed up no changes can be made to your premiums or cash benefit.

The policy can be taken out either as level or decreasing term. In both of these options your monthly premiums are fixed throughout the term, but with level term your cash benefit remains the same whereas with decreasing term it falls over time. Decreasing term policies are designed to cover debts that are gradually paid off, such as a mortgage. Here’s a summary of what Lloyds’ policy offers:

  • Open to UK residents aged 18-60
  • Level or decreasing term
  • Pays out on diagnosis of a terminal illness with a year or less to live
  • 30 day cancellation period
  • No cash-in value at any time
  • No changes can be made once the policy begins
  • Maximum cash benefit is £500,000

Lloyds Bank: Conclusion

The combination of one of the country’s biggest banks and one of its most highly respected insurers makes for a life insurance policy you can trust. The Lloyds Bank life insurance is a solid option that gives you life cover you can depend upon.

This being said, by only offering one policy, Lloyds doesn’t leave you with a lot of choice to find a policy that best suits you, and their policy is not flexible at all once you have signed up. While terminal illness cover is included as standard, there’s no option to add critical illness to your policy, so if this is what you’re looking for then it’s best to consider other options.

Overall, Lloyds’ My Life policy offers decent life insurance cover from a reliable company, but there’s a chance that it might not suit your needs given the limited choice and lack of flexibility.