Types of life insurance policies
Life insurance may be able to help ease the financial strain on your loved ones should you pass away. But everyone’s circumstances are unique. This calls for different types of life insurance policies to suit people’s individual needs.
Deciding what life insurance is best will ultimately depend on your financial needs, what you’d like to cover, and over what period. Discover some of the UK life insurance policies we offer, and find one that’s just right for you.
Term life insurance
Term life insurance covers you for a specific period of time, or ‘term’. It’s the most common type of life insurance and is often taken out to cover a mortgage, loan or other financial commitment.
Term life insurance can last for anywhere between one and 50 years (maximum term available depends on the age of the policy holder when taking out cover, and what the provider offers). Sometimes people buy this policy to support their family and surviving partner or spouse.
Level term life insurance
Level term is the same as term life insurance or also known as just 'life insurance', they're all the same products, just referred to by different names. The monthly premium cost and cover remain the same throughout the policy term. If you pass away, your beneficiaries will get a payout if a valid claim is made during the term.
With level term life insurance, you can choose the coverage length and your premiums won’t change unless you make changes to your policy. The sum assured remains at a level amount throughout the term – hence the name.
Decreasing life insurance
Decreasing life cover is another term life insurance policy type where your amount of cover decreases over time. This policy could help to pay off the balance of a repayment mortgage or another loan that also reduces over a specific period (please note, this policy cannot be used to help protect an interest-only mortgage). Some mortgage providers may require you to take out a decreasing life insurance policy in order to approve your mortgage application.
With decreasing life insurance, the payout reduces roughly in line with your mortgage as you pay it off. Your monthly payments remain the same throughout the duration of the policy, so you won’t need to worry about rising premiums. However, you’ll need to ensure the policy is large enough to pay off the existing mortgage.
Over 50s life insurance
Over 50s life insurance covers you for the rest of your life – as long as you’re a UK resident aged between 50 and 80 years old. This is a type of ‘whole of life’ insurance, so there isn’t a fixed period. When you die, your insurer will pay your loved ones, providing your policy has been in place for a year and your premiums are up to date. If you pass away within the first year, any premiums paid will be refunded. However, if you die as a result of an accident then full cover will be paid.
Different types of cover
There are also some extra policies, coverage and add-on features you can either include in your life insurance plan or buy as a standalone policy.
Joint policies
A joint policy covers you and your partner or spouse. It insures two people at the same time on a single plan, so you’ll pay one premium each month. If one of you passes away, the surviving spouse receives a payout, though it depends on your policy plan.
This is a viable option to keep your other half and children covered should something happen. For a joint life first death policy if one of you passes away the surviving partner receives the policy proceeds. If both policyholders die at the same time, the payout will go to the beneficiaries of the policy.
Critical illness cover
Critical illness cover offers financial support if you become seriously ill. The cash sum could be used towards things like medical expenses, household bills or childcare costs.
Critical illness cover only covers certain conditions and injuries such as Parkinson’s disease or heart attacks for example. It can sometimes be bought on its own, but in most cases, as with our policies, it can be added for an extra cost when you take out life insurance.
Accidental death benefit
Accidental death benefit as part of a life insurance policy, is a cash sum if you pass away within a certain period following an accident. It applies to an incident that causes accidental, violent, external and visible bodily injuries, which results in death. This differs from life insurance, which covers most deaths from natural causes.
Some insurers are unable to give you an immediate decision when you apply for life insurance. With accidental death benefit, you get protection while your application is being processed. The cover will last for a maximum of 90 days (for most insurers), or until your application is postponed, accepted or declined.
Life insurance with Sainsbury’s Bank
Life can throw curveballs at you. Prepare for the unexpected with life insurance through Sainsbury’s Bank. When you buy life cover with us, you’ll also get:
- Cover from as little as £5 a month (depending on age).
- Protection by L&G – one of the UK’s largest life insurance providers.
- Access to L&G Wellbeing Support Services.
- The chance to earn Nectar points as a Nectar member.
- Access to Care Concierge – an impartial and confidential telephone advisory service to help you or loved ones to navigate later life care options.
Not sure how much cover you need? Check out our life insurance calculator and get a quote today.
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Terms and conditions
Legal & General Assurance Society Limited Registered in England and Wales No. 00166055. Registered office: One Coleman Street, London, EC2R 5AA. Legal & General Assurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.