Review of Santander Life Insurance

Santander offers three different life policies: Santander Life Insurance, Critical Illness Insurance, and Over 50s Life Assurance. The first two are both term policies that can be taken out for up to 50 years, whereas the Over 50s policy is a whole of life policy. All of these policies are provided through Aviva, who has a 5-star Defaqto rating.

Policies can be used to cover one or two people. These policies are designed to help protect your loved ones if you die, either unexpectedly or of age/health related causes depending on the policy you choose. Santander’s policies aren’t flexible, but they’re all comprehensive life cover from a trusted and reliable company so are definitely worth a look.

Click Here For A Quote From Santander Life Insurance >>


Pros
Cons
  • Policies are not flexible
  • Not a lot of choice

About Santander Life Insurance

Santander life insurance is offered through Santander UK plc, a British bank owned by the Spanish Santander Group. It was established in 2010 through a combination of Abbey National plc and parts of Bradford & Bingley plc, with Alliance & Leicester merging into the bank soon after its creation.

Santander’s life insurance policies are all provided, administered, and underwritten by Aviva - one of the most trusted names in insurance.

Santander Insurance Options: Our Honest Breakdown

Santander offer three different life policies: Santander Life Insurance, Critical Illness Insurance, and Over 50s Life Assurance. Their critical illness cover is designed only to protect you from falling critically ill only and will not pay out in the event of death. Santander’s Life Insurance is a term policy with a maximum length of 50 years, the Over 50s plan is a whole of life policy.

Santander have less choice than many other providers and their policies aren’t flexible once you have signed up to them. You can, however, choose between decreasing and increasing cover (explained below) with their Life Cover and Critical Illness Insurance policies to suit your needs.

All three policies are managed and administered by Aviva, who have a 5-star Defaquto rating for life cover so you can rely on Santander’s policies being secure.

Here are the details of the policies available through Santander:

Santander Life Insurance

Santander’s Life Insurance is offered as a term policy to UK residents aged 18-89 for anywhere between 1 and 50 years. You can choose between decreasing cover and increasing cover to set your benefit and premium rates for the policy.

With decreasing cover your premiums will stay the same throughout the Santander Life Insurance policy but your benefit will reduce over time. This type of cover is ideal if you’re using life policies in order to cover a debt that gets smaller over time, such as a mortgage.

With increasing cover, both your benefit and your premiums will rise throughout the policy in line with the Consumer Price Index (CPI) up to a maximum of 10%. This type of policy is designed to offset the effects of inflation, but it is worth bearing in mind that your premiums increase at a marginally higher rate (CPI x 1.5) than the benefit (which rises just with CPI).

  • Open to UK residents aged 18-89.
  • Term can run from between 1 and 50 years.
  • Available with either decreasing or increasing cover.
  • Policy must end before 91st birthday.
  • No changes can be made during the term of the policy.
  • 2% cashback if you pay through direct debit from a Santander 1|2|3 current account
  • Can be taken out as a joint policy.
  • In the event of a separation, any joint policy can be split into two single policies with no additional medical questions.

Critical Illness Insurance

Santander Critical Illness Insurance covers UK residents aged 16-64 for falling victim to the illnesses listed in their terms and conditions - it will not pay out in the event of death. With this policy, your children will also be covered as long as they are aged between 30 days and 18 years (or 21 if they’re in full-time education).

Like Santander’s Life Insurance, the Critical Illness Insurance policy is available for a term of 1-50 years and can be taken out with either with decreasing or increasing cover. Here’s what that means:

Decreasing Santander Life Insurance cover: the policy premiums stay the same but the amount paid out as a benefit falls over time. This type of cover is designed to help insure against an illness that could stop you working to pay off a debt that reduces over time, such as a mortgage.

Increasing Santander Life Insurance cover: both your benefit and premiums will rise in line with the Consumer Price Index (CPI) up to a maximum 10%. This helps offset the effect of inflation on any payout, but it’s good to bear in mind that the premiums rise at a slightly higher rate (1.5 x CPI) than the benefit (just the CPI).

  • Open to UK residents aged 16-64.
  • Term can be anything from 1 to 50 years.
  • Policy must end before 76th birthday.
  • Can be taken out either with decreasing or increasing cover.
  • Covers for critical illness only, not death.
  • Cover also provided for your children during the term of the policy.
  • 2% cashback if you pay through direct debit from a Santander 1|2|3 current account
  • Can be taken out as a joint policy.
  • In the event of a separation, a joint policy can be split into two single policies with no extra medical questions

Over 50s Life Assurance

Santander’s Over 50s Life Assurance policy offers whole of life cover for which you pay premiums either for a maximum of 30 years or until your 90th birthday. There are no health checks required and the policy is fixed: both your premiums and the amount of benefit remain the same throughout.

  • Whole of life policy.
  • Open only to over 50s.
  • Pay premiums either for a maximum of 30 years or until your 90th birthday.
  • 2% cashback if you pay through direct debit from a Santander 1|2|3 current account
  • Accidental death cover from the start of the Santander Life Insurance policy.
  • Double the benefit pays out for accidental death after you’ve had the policy for 1 year.
  • If you die from a cause other than accidental death in the first year, your premiums will be paid back in full.
  • After the first year the full benefit is paid for all causes of death.
  • Changes cannot be made to the policy once it has been taken out.

Santander Life Insurance: Conclusion

Santander offer fewer options and less flexibility than some other life cover providers, but their insurance options are all managed by Aviva, who has a 5-star Defaqto rating. It can be hard to get accurate estimates of their premiums and benefit amounts without getting a quote directly from them, so that’s the next step if their policies appeal to you.

If you’re looking for Critical Illness Insurance particularly, then Santander’s policy is a good option, as some other insurers offer this only as an add-on to other life cover policies.