A Closer Look at Lloyds Life and Critical Illness Insurance Products

Lloyds carries three life insurance products:

Why Go with Lloyds?

Here are some reasons to go with Lloyds:

Quick Facts

Lifetime Cover (Whole of Life Cover) Term Insurance
Primary Purpose of Product

Helps cover end of death expenses (i.e. funeral costs, hospital costs) or provide a cash lump sum for loved ones.

Cover a mortgage or the family’s financial needs in the event of the Person Insured’s death, terminal illness or critical illness if this is included.

Plan Basics

Provides life insurance cover for the person’s entire life, as long as he keeps it in force.

Sum Insured can be level of increasing.

Provided by Scottish Widows for Lloyds TSB.

Term insurance that can provide a lump sum on death, terminal illness or critical illness.

Critical illness cover can be included.

Sum Insured can be level, increasing or decreasing (primarily for mortgage cover).

Provided by Scottish Widows for Lloyds TSB.

Cover Limits

Minimum: £2,000

Maximum: £5,000,000

Minimum: £2,000

Maximum: £5,000,000

Cash-In Value

None

None

Eligibility
Minimum Age at entry

18

18

Maximum Age at entry

74

For decreasing basis: 64

For level basis: 68

Other eligibility requirements
  • Must be a resident of the UK, except the Isle of Man or the Channel Islands
  • Must have a bank account in the UK
  • Must be a resident of the UK, except the Isle of Man or the Channel Islands
  • Must have a bank account in the UK
Length of Cover

For plans used to cover a mortgage, the plan should be the same length as the mortgage term.

Minimum Term

Not applicable

For decreasing basis: 5 years

For level basis: 1 year

Maximum Term

No maximum term, plan can continue for the whole of the Person Insured’s life

40 years

Maximum Age

No maximum age. Cover continues beyond 90 years old even when premiums are no longer payable.

69 years old

Premiums

Premiums are only payable up to age 90. Once the Person Insured reaches 90, he doesn’t have to pay premiums but still enjoy the lifetime cover.

Minimum Premium

Depending on premium for minimum available cover

Depending on premium for minimum available cover

Maximum Premium

Depending on premium for maximum available cover

Depending on premium for maximum available cover

Guaranteed premiums

Yes

Yes

Reviewable premium

No

Yes, reviewable every 5 years.

Joint life cover

Yes, joint life second death

No

Other benefits
  • 30 Days’ Free Accidental death cover (automatic)
  • Premium Protection (for Sum Insured greater than £15,000)
  • Critical Illness cover (optional)
  • Terminal illness cover (automatic)
  • 30 Days’ Free Accidental death benefit (automatic) or 90 Days Mortgage Free cover
  • Waiver of premium (optional)
Exclusions

For some Persons Insured, there may be an Early Death Exclusion and Accidental death. Under this exclusion, full payment of the Sum Insured would only be made after the policy has been in force for at least 2 years. Any deaths within the first 2 years should be caused by an accident if it is to be payable.

For accidental death under the Early Death Exclusion:

  • Self-inflicted injury
  • Hazardous sports and pastimes

No payments will be made if the death or disability arises, directly or indirectly from:

  • Self-inflicted injury, including attempted suicide
  • Involvement in criminal activities (including provoking an assault or criminal offence)
  • War and civil commotion
  • Abuse of drugs and alcohol
  • Accidents that occur prior to the application
  • Unreasonable failure to follow medical advice

Plan Details

Payment of Sum Insured. The Sum Insured is payable upon the Person Insured’s

The payments will only be made if death or illness occurs within the plan term and as long as the policy remains in force.

Sum Insured. The Sum insured can be level, increasing or decreasing.

Premiums. Premiums for term cover can either be guaranteed or reviewable.

Additional Benefits/Options

Critical illness Cover. If the Person Insured becomes diagnosed with a covered critical illness, he can claim for the Sum Insured to help pay for medical costs. Once the critical illness claim is paid, the cover stops and there will be no more payments for the death benefit.

The critical illnesses included are:

Other details:

Children’s critical illness. The Person Insured’s children (natural, by legal adoption or stepchildren) are automatically covered if they are aged 6 months to 21 years at the time the policy is in force. The cover is for the lesser of £25,000 or 50% of the Sum Insured if a child is diagnosed with a covered critical illness.

Terminal illness cover. This pays out the Sum Insured if the Person Insured is terminally ill, where his illness is in an advanced stage and the Person Insured is not expect to survive the illness for over 12 months.

Waiver of Premiums. The benefit means that the Person Insured no longer has to pay the premiums if he has become disabled.

Other details:

Free life cover. After the Person Insured has applied for his policy and before that policy is issued, there is a free life cover benefit. This can be the 90 Day’s Mortgage Free Cover if the cover is bought to protect a mortgage or the 30 Days’ Free Accidental Death Cover for other term life insurance cover.

Other details:

How to make a claim

Claims are made and payments are received by:

Death claims: Beneficiaries

Critical illness claims: Person Insured or owner of the policy (if these are different)

Waiver of Premiums claims: Premiums paid out directly to the company

Documents that may be required include:

Time limits:

To secure your family's future, fill in the form on the right or call 0808 231 5178 and get your term life insurance quote now.

Types of insurance:
Term life insurance 101:
Life insurers:
*Scottish Provident 2012 life cover claims paid report.