Review of Nationwide Life Insurance

Nationwide offers two main life protection policies: regular term cover and a specially designed policy for mortgage holders. Both can be adapted to your life situations change and be take out either as level term or decreasing cover. To apply for either you must be a Nationwide customer.

You can also add critical illness cover as an extra to either policy, and also take out income protection insurance through Nationwide. We’ve outlined and broken down the options available for you to help you decide if Nationwide life insurance is right for you.

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Pros
  • Low premiums
  • Choice between level term and decreasing cover
  • Early days advance payment of £5,000 while any claim is assessed
  • Cover for your children if you choose to add critical illness cover to your policy
  • Terminal illness cover comes as standard
  • Joint cover available option for you and your partner
  • Very flexible policies
Cons
  • Critical illness cover must be added as an extra
  • No whole of life or over 50s plans
  • Only available to existing Nationwide members

About Nationwide

Nationwide Building Society is the second largest provider of household mortgages and savings in the UK. It is the largest building society in the world with over 15 million members and it was ranked number 1 in customer satisfaction amongst its high street peer group in March 2016.

The history of Nationwide is a company gradually developing through over a hundred mergers, going back as far as 1848. The name Nationwide Building Society was adopted in 1970 and now is one of the most recognisable names on British high streets.

Insurance Options: Out Honest Breakdown

Nationwide life insurance packages are exclusive to existing members. However, the versatility and range of term life policies on offer means there’s likely to be a suitable solution for all single and joint applicants aged 18-77.

Both Nationwide Life Insurance and Nationwide life insurance for mortgage holders can be taken out as either level term or decreasing cover policies (explained below). Critical illness cover can be added in exchange for increased premiums and you can also take out Nationwide’s Income Protection Benefit policy to protect against being unable to work for a long period of time.

Nationwide offers a £5,000 early days payment plan so that your family can gain support while any claim is assessed. Nationwide Life Insurance also offers free life cover for 90 days to clients who are moving home while they assess whether to offer Mortgage life cover.

Another useful thing about Nationwide’s policies is that they allow for changes to be made after a policy has been taken out, including increasing the level of coverage. This sense of customisation is great for anyone who may encounter a change of circumstances.

Nationwide life insurance is offered up to the age of 90 (70 for critical illness inclusion). Applicants must be aged 77 or under to apply, although this can fall depending on the plan. For joint applications, only the first death will be covered by the payout.

Premiums at the Nationwide start at just £6 per month (£7.36 for smokers). The price will increase depending on the duration and payout, as well as other factors such as your age and expenses. Those prices will cover applicants for up to £100,000 for a duration of 25 years.

Here’s a breakdown of the specific policies offered by Nationwide:

Term Life Insurance

Both of Nationwide’s life insurance policies can be taken out either as a level term or decreasing cover agreements. With level term, the premiums you pay and the cash sum paid out on a successful claim is remained the same throughout the policy. With decreasing cover, your premiums remain the same but the cash sum paid out decreases over time. The decreasing cover is designed specifically to cover a debt that reduces over time, such as a mortgage. It’s common to find premiums being lower with a decreasing cover policy.


Nationwide Life Insurance

  • Premiums start at £6 a month
  • Can choose between level term and decreasing cover
  • Changes can be made after policy has been taken out
  • Only open to Nationwide customers
  • Policy can last a maximum of 50 years
  • Must be between 18 and 77
  • Policy must end before 90th birthday - no whole of life cover
  • Early days advance payment of £5,000 while any claim is assessed
  • Can add waiver of premium benefit: pays your premium after 26 weeks if you become incapacitated out of sickness or injury
  • Can add critical illness cover in exchange for higher premiums

Nationwide Life Insurance for Mortgage Holders

  • Very similar to the regular life cover policy, except tailored for mortgage owners
  • Premiums start at £6 a month
  • Can choose between level term and decreasing cover
  • Changes can be made after policy has been taken out
  • Only open to Nationwide customers
  • Policy can last a maximum of 50 years
  • Must be between 18 and 77
  • Policy must end before 90th birthday - no whole of life cover
  • Early days advance payment of £5,000 while any claim is assessed
  • Can add waiver of premium benefit: pays your premium after 26 weeks if you become incapacitated out of sickness or injury
  • Can add critical illness cover in exchange for higher premiums

Other Nationwide Life Insurance Options

Along with being able to add critical illness cover to the above policies, you can also take out income protection insurance with Nationwide. Income protection benefit is used to provide a safety net should you become unable to work. As statutory sick pay is under £100 per week, this can be a lifesaver.

Income Protection Benefit

  • Pays out a tax-free monthly benefit after a set amount of time if you become unable to work
  • Can help you keep up with bills, mortgage payments, and your standard of living until you’re back on your feet
  • Premiums, the value of monthly payouts, and the length of time before payments start can be adjusted to suit you
  • Payouts are set to a maximum of 60% up to £60,000, and 50% of any additional funds up to a total of £200,000 per year

Nationwide Life Insurance: Conclusion

Nationwide offers a range of life cover products at affordable premiums. Both individual and joint applicants can take advantage of the available plans. Moreover, the extra safety net of income protection and options for personalisation add to the company’s appeal.

You can’t get whole of life cover or a specific over 50s plan through the company, but if you’re looking for a flexible option for term life cover with a reputable company, then Nationwide life insurance is a good option. Just remember you need to be an existing member to qualify for a policy.