Lloyds Bank Life Insurance Review 2023
“Lloyds Bank is likely at the forefront of your search if you’re in the market for life insurance. But how does this big name in banking measure up regarding life insurance?
This review will take a comprehensive look at the company’s life insurance offerings and give you a detailed view of what’s available.
We’ll walk you through Lloyds Bank’s life insurance and critical illness policies, the features included in each policy, and the reviews from customers who have already used the service.
Read on for our full Lloyds Bank Life Insurance Review.
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Overview of Lloyds Bank Life Insurance
Regarding its financial strength and stability, Lloyds Bank has a long-standing reputation that customers have come to count on. It’s been providing banking services to its customers since 1765 and is part of the Lloyds Banking Group, which includes Halifax, Bank of Scotland and Scottish Widows.
The bank holds an A+ rating from Standard & Poor’s (S&P), reflecting its strong financial standing.
Scottish Widows provides Lloyds Bank’s life insurance and critical illness policies. It is one of the oldest and largest providers in the UK, with over 200 years of experience providing customers with financial products.
On the Lloyds website, you’ll find a life insurance calculator and other details about their policy. It should also be noted that you need to be an existing Lloyds bank customer to take out a life insurance or critical illness policy with Lloyds.
Who Might Benefit From a Lloyds Bank Life Insurance Policy?
With Lloyds Bank life cover, you and your family can feel a sense of security in knowing that if something were to happen to you, they would receive an agreed-upon amount from the policy.
This sum could offset existing debts, mortgage payments or other expenses that might otherwise be hard to manage without your income.
Types of Life Insurance Coverage Offered
Life insurance is usually offered as term life insurance or whole life insurance. Term life insurance provides coverage over a predetermined time, while whole life insurance covers you for your entire lifetime.
Lloyds Bank only offers level-term life insurance and critical illness coverage, which pays out if you are diagnosed with one of the conditions listed in the policy’s terms and conditions.
There are two term life insurance options: level and decreasing life insurance. But as we mentioned with Lloyds bank, you are limited to just level life.
Typically for both options, your beneficiaries will receive a cash lump sum if you pass away during the term of the policy.
Lloyds also provide you with serious illness cover though the details of which particular conditions are covered aren’t included on their website. When you apply for a quote for life cover, you should receive an illustration of the policy that includes a complete list.
The maximum cover that Lloyds Bank life insurance pays is £500,000, and you’ll pay fixed monthly premiums. Coverage is offered from 5 to 40 years, up until age 69. Terminal illness coverage is also not included.
Lloyds Bank Level Term Life Insurance
Level-term life insurance guarantees your family a fixed benefit amount for the duration of the policy. As its name implies, you can expect to pay consistent monthly premiums without any surprises giving you peace of mind that your family will always be guaranteed a specific sum of money.
The main advantage of this type of life insurance is that you can plan ahead and budget accordingly since there’s no guesswork involved in how much you’ll be paying over the term and how much your loved ones will receive if something happens.
Decreasing Term Life Insurance
Lloyds bank doesn’t offer decreasing cover, only level term life insurance. However, as it’s often the best life insurance option for some individuals, we thought it was worth mentioning.
Decreasing term life insurance is often the preferred solution to cover a repayment mortgage. The benefit amount decreases in line with the mortgage balance, so if something were to happen to you before it has been paid off, your beneficiaries would still receive enough money to pay it off.
Lloyds Bank Critical Illness Insurance
Critical illness cover helps to provide protection if you are diagnosed with a serious health condition. This type of insurance policy is designed to provide financial security if you cannot work due to your illness.
Lloyds Bank offers critical illness cover through Scottish Widow as a separate policy; you’ll find it referred to as body cover insurance. It pays out if you are diagnosed with one of the conditions listed in the policy’s terms and conditions.
- Brain and neurological diseases
- Heart disease or heart attack
- Organ transplant or kidney failure
- Limb amputation or paralysis
Lloyds Bank’s plan is quite basic compared to other critical illness coverage providers. It doesn’t provide children’s critical illness coverage at all.
If you are unfortunate enough to be diagnosed with early-stage cancer – where treatment can cost thousands of pounds – the payout is just £5,000.
Before submitting a Lloyds Bank life insurance quote, you must meet a few eligibility requirements.
- You must be between 18 and 59 years old
- A UK resident
- And an existing Lloyds Bank customer
When completing your application, you will be required to answer questions about your health and lifestyle. Be honest on these questions, as any incorrect information could invalidate your policy should a claim be made in the future. You won’t be asked to have a medical exam.
If you’ve met the eligibility requirements and applied, you should get a decision in under ten minutes.
What is the Cost of Lloyds Bank Life Insurance?
Regarding the cost of Lloyds bank life insurance, you can get cover starting at around £5 per month. But this will increase depending on your age, health background, occupation, hobbies, and the amount of coverage you need, as well as any additional critical illness cover you take out.
It’s always best practice to compare quotes from different providers to ensure you get the best possible deal.
Lloyds Bank Life Insurance Reviews
Reviews about Lloyds life insurance are relatively scant online – Trustpilot awards them a 1.3 out of 5 rating for their overall banking services, but this includes home insurance, car insurance and other services not directly related to life insurance.
Defaqto gives an expert rated 2 stars out of 5, also not a ringing endorsement.
On a more positive note, in 2021, Scottish Widows paid out 98% of all claims made in the period, totalling £207m paid out to policyholders. We recommend comparing multiple providers rather than going with a single insurer.
Pros and Cons
Let’s quickly summarise the benefits and downsides of Lloyds Bank’s life insurance coverage.
- Includes serious illness cover
- It has a Maximum cash benefit of up to £500,000
- You have a 30-day cancellation period if you change your mind
- If you take out a policy online, you get a £100 Gift Card
- Convenient for existing Lloyds bank customers
- Have to be a Lloyds bank customer to be eligible for life insurance
- Life insurance policy options are limited
- Trust Pilot ratings of Lloyds bank overall are low
And now that we’ve gone through all of the details surrounding Lloyds Bank Life Insurance, let’s conclude this review with some final thoughts.
For existing Lloyds Bank customers, their coverage may appear to be an attractive option; however, we’d advise keeping your options open and doing some research before signing on the dotted line.
It might be more convenient to keep all your financial commitments under one roof, but it can impact the price and flexibility of your policy.
And once you’ve decided on a policy, there’s no return on your monthly premiums, so comparing life insurance products is always a wise investment of your time and money.
Deciding on the best life insurance policy isn’t easy, but using a comparison website opens up a lot more doors and can find cheaper rates and more tailored policies.
Fill in our quote form, and you’ll get the best quotes from multiple providers in minutes. It’s free to use and with no obligation to follow up; what have you got to lose? Get your quote today!
Lloyds Bank Contact Details
Address: 25 Gresham Street, London EC2V 7HN.
It is registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
Telephone: 0345 300 4455 Opening Hours: Monday to Friday, 8 am–6 pm.