Lloyds life insurance: A 2024 review and guide

If you need life insurance to protect your loved ones and you’re an existing Lloyds Bank customer, then you may’ve considered a Lloyds Bank life insurance policy.

Currently, Lloyds Bank offer several term-based types of cover, including:

  • Level term life insurance
  • Decreasing term life insurance
  • Critical illness cover
Lloyds Bank life insurance

You must be aged 18 - 59 to be eligible. It’s possible to get quotes online or through your banking app depending on the policy type and your personal circumstances[1].

In this review, we delve into the key features and benefits of Lloyds Bank life insurance to help you determine whether it could be the right option for you.

We also explain why going direct to your bank for life insurance may not present you with the best deals or the right policy to suit your needs.

Whilst we can’t provide Lloyds Bank quotes at Reassured, we can compare quotes from a range of top UK life insurance providers to help you find the right financial protection.

See if you can secure a better deal through our fee-free, award-winning broker service today.

Lloyds Bank life insurance overview

  • Policies are underwritten and provided by Scottish Widows, a financial services provider and part of the Lloyds Banking Group
  • Only available to existing Lloyds Bank customers who are UK residents aged 18 - 59
  • With some policies, it’s possible to get quotes and fill in the application form online (via the Lloyds Bank website or banking app)
  • The maximum cover amount is £500,000 and the maximum policy term is 35 years (term must end before your 70th birthday)
  • Critical illness cover is rated 3 stars by Defaqto and life cover is rated between 1 and 3 stars depending on the type of policy
  • 98% of all Scottish Widow life insurance and critical illness claims were paid in 2022[3]

About Lloyds Bank

Lloyds Bank is one of the major brands owned by the Lloyds Banking Group and is regulated by the Financial Conduct Authority (FCA).

If you’re an existing customer of Lloyds Bank then you’re probably aware of the services they offer, which include banking, mortgages, and investment products.

Like most other banks, Lloyds Bank also provide access to a range of insurance products such as home insurance, car insurance and life insurance.

Who do Lloyds use for life insurance?

Lloyds Bank has partnered with the following two companies to provide their life insurance:

Scottish Widows

Lloyds Bank use Scottish Widows to underwrite and administer their life insurance policies.

Scottish Widows is a well-established financial services provider, regulated by the Financial Conduct Authority (FCA) and part of the Lloyds Banking Group.

If you take out life insurance through Lloyds Bank, then any future queries, policy changes and/or claims regarding your cover will be managed by Scottish Widows.

Cavendish Online

Lloyds Bank also work with Cavendish Online, a specialist life insurance broker that’s also part of the Lloyds Banking Group.

If you’re unsure about which life cover or critical illness policy is best for you, you can contact Cavendish Online directly for free financial advice.

You’re not obligated to take out life insurance with Lloyds Bank or Scottish Widows if you use Cavendish Online and they don’t charge a fee.

Lloyds Bank life insurance reviews and ratings

Customer reviews

Customer reviews for Lloyds life insurance are limited, so we’ve provided those for Scottish Widows and Cavendish Online in the table below:

ProviderTrustpilotNo. of reviews
Scottish Widows logo 2.6 stars1,225
Cavendish logo 4.9 stars2,311


Scottish Widows customer reviews typically refer to the service provided for their pension and investment products more so than their life insurance products.

Cavendish Online customer reviews mainly describe that the financial advisors are very helpful and professional, and the service is efficient and informative.

Expert ratings

Expert ratings are provided to help you understand the quality of a financial product before making a purchase.

The table below shows star ratings for Lloyds life insurance policies as scored by Defaqto, an expert review site:

Policy 5 star defaqto rating
Life cover (direct) Defaqto 3 stars
Decreasing term life cover Defaqto 1 stars
Level term life cover Defaqto 2 stars
Life cover with critical illness (direct) Defaqto 3 stars
Decreasing term life cover with critical illness Defaqto 2 stars
Level term life cover with critical illness Defaqto 2 stars
Critical illness (direct standalone) Defaqto 3 stars
Critical illness (standalone) Defaqto 3 stars


Based on these star ratings, it’s possible to find similar life insurance products on the market that are better quality and offer a broader range of features and benefits.

At Reassured, we’re rated ‘Excellent’ on Trustpilot from more than 75,000 customer reviews and we work with some of the highest rated insurers in the industry.

Make the most of our award-winning service and get your free quotes by filling in our simple quote form.

What life insurance does Lloyds Bank offer?

Lloyds Bank offer three different types of term-based life insurance and critical illness policies.

They don’t offer life assurance policies, which provide cover for the rest of your life.

We outline the policy options and key features below:

Lloyds level term life insurance pays out a fixed cash lump sum if you pass away during a set term. It’s designed to provide financial security for your family.

The funds can be used to help cover a mortgage, living costs and other debts.

Key features:

  • Choose the cover amount (up to £500,000)
  • Choose the length of the policy term (5 - 35 years)
  • Cover remains fixed throughout the policy term
  • Available online for existing Lloyds Bank customers aged 18 - 59

Lloyds decreasing term life insurance pays out a cash lump sum if you pass away during a set term.

It’s designed to help cover a repayment mortgage as the pay out amount reduces in line with your mortgage balance, until it reaches zero at the end of the policy term.

Key features:

  • Choose the cover amount (up to £500,000)
  • Choose the length of the policy term (5 - 35 years)
  • Cover amount decreases over the policy term
  • Only available to existing Lloyds Bank customers aged 18 - 59 via a Lloyds financial advisor

Lloyds critical illness cover pays out a cash lump sum if you’re diagnosed with a serious illness (that’s covered in your policy) during a set term.

The funds can be used to help cover essential costs, pay for medical care, make home adaptations or any other expenses.

Key features:

  • Choose the cover amount (up to £500,000)
  • Choose the length of the policy term (5 - 35 years)
  • Choose between level and decreasing term cover
  • Level term cover available online for existing Lloyds Bank customers aged 18 - 59
  • Illnesses covered include stroke, heart attack, dementia, kidney failure and invasive cancer
  • Can be taken out as a standalone policy or added to a life cover policy for an extra cost

At Reassured, we also offer term life insurance policies starting from just £5 a month from a panel of leading insurers.

We also offer term life insurance combined with critical illness cover, with premiums starting from just £8 a month º .

Compare your free, personalised quotes today using our award-winning service.

What does Lloyds life insurance cover?

Life insurance is designed to pay out a cash lump sum when you pass away, which could help to cover essential costs for your family or be spent however they see fit.

The money from a policy could contribute towards:

  • Mortgage or rent. The average UK mortgage debt is currently £129,130[4] and the average cost of rent is £11,675 per year[5]
  • Monthly costs (such as bills, transport and food shops). The average household budget per month is around £2,300
  • Outstanding debts (such as personal loans and credit cards). The average adult’s debt in 2022 was £34,566 (not including mortgages)[6] and the average credit card debt per household in 2023 was £2,277
  • Childcare or schooling costs. The average cost of raising a child to the age of 18, including childcare, is £157,562 for a couple and £208,735 for a lone parent[7]
  • Funeral expenses. The average cost of dying is £9,200 in the UK[8]

Your needs, personal circumstances and budget will determine exactly what your life insurance can help to cover. The maximum cover limit through Lloyds Bank is £500,000.

How much life insurance do you need?

Find out how much life insurance may be right for you by using our simple calculator. Fill in the costs you would like your policy to cover.

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£121,687 is the estimated average outstanding mortgage per household in the UK.

Our property is generally the largest financial commitment any of us will make.

Your life insurance should cover this significant debt should you no longer be around.

£
?

According to Money Advice Service, full-time childcare in the UK now costs £242 a week.

The loss of a parent could result in the need for additional childcare whilst the surviving parent increases their hours to account for lost income.

Your life insurance cover should factor in this additional required outgoing.

£
?

The average level of debt (minus a mortgage) in the UK is £15,385.

Factoring in any outstanding debts in your name when arranging life insurance ensures this burden is not passed to loved ones.

£
?

You may wish to leave your loved ones an inheritance or lump sum gift upon your passing.

Factoring in the gift amount when arranging your cover will ensure the pay out amount will be sufficient to provide your loved ones with this selfless gesture.

£
?

According to SunLife, the average cost of a UK funeral is now £4,417, whilst the total cost of dying is £9,493.

This is a 130% increase over the past 16 years and shows no signs of slowing down.

A significant cost which should be factored into the amount of life insurance you secure.

£
?

If you are one of the 65% of the UK who are lucky enough to have savings, this could be used as protection if you were to pass away.

Any pay outs from existing life insurance policies and investments can also be used as financial protection for your loved ones if you were no longer around.

Factor this into your required cover amount.

£ -

Your total cover estimate

£ 0

Let us find you our best quote.

How much does Lloyds life insurance cost?

Lloyds life insurance starts from £5 a month. However, the exact price you pay will depend on how much cover you choose to take out and your policy term.

The monthly cost will also depend on your personal circumstances. During the application process you may be asked about the following:

All these factors will allow the insurer to determine how much you’ll pay each month for your policy.

As mentioned, Lloyds life insurance is only available to Lloyds Bank customers. Even as an existing customer, the price you’re quoted may not be the best price available.

Comparing quotes from different insurers could help you find a policy that’s better value for money and more suited to your needs. Contact Reassured to get your free, personalised quotes from top UK providers.


In the tables below, we’ve provided some example quotes for a range of policies available through us. Quotes are based on a non-smoker in good health, taking out a policy with £100,000 of cover and a 20 year term.

Level term life insurance:

Age Aviva AIG logo Legal & General
20£3.50£3.64£4.99
25£3.50£4.46£4.99
30£4.23£5.08£4.99
35£5.67£6.47£6.32
40£7.97£8.52£8.77
45£11.43£12.19£13.28
50£18.34£18.17£21.13


Decreasing term life insurance:

Age Aviva AIG logo Legal & General
20£3.50£3.87£4.99
25£3.50£4.30£4.99
30£3.59£4.59£4.99
35£4.44£4.90£4.99
40£5.47£5.47£6.28
45£7.56£7.77£8.25
50£11.80£11.43£12.36


Level term life insurance with critical illness cover:

Age Aviva AIG logo Legal & General
20£15.79£16.29£13.60
25£19.80£21.32£18.67
30£25.86£28.09£26.65
35£36.18£38.09£37.51
40£52.16£53.38£52.38
45£75.94£76.62£77.11
50£112.33£113.32£121.06


Contact our dedicated team for expert support and free quotes today.

Lloyds life insurance comparison

According to experts, life insurance through Lloyds Bank is quite basic compared to other options you can get on the market, offering only an average level of features and benefits.

The table below shows a comparison of term life insurance through Lloyds Bank and term life insurance from other leading UK insurers, so you can easily see the differences between each:

Age limitMaximum sum assured (cover amount)Term lengthBenefitsDefaqto rating
Lloyds Bank life insurance 18 - 60£500,0005 - 35 yearsN/A1 - 3 stars
Aviva 18 - 77£5,000,0001 - 50 years (must end by 91st
birthday)
  • Free Terminal illness cover
  • Free access to Aviva Digicare + app
5 stars
AIG logo 17 - 86£3,000,0002 - 70 years (must end by 90th
birthday)
  • Free Terminal illness cover
  • Free access to Smart Health
4 stars
LV= 17 - 84£1,500,0005 - 50 years (must end by 90th
birthday)
  • Free Terminal illness cover
  • Free access to LV= Doctor Services
5 stars


At Reassured, we can help you compare quotes from Aviva, AIG and LV=, as well as many other leading insurers, to help you find a good quality policy at the right price.

Our polices are available to applicants aged over 18. Fill in our simple quote form for your free, personalised quotes.

Can you get Lloyds Bank over 50 life insurance?

No, you can’t get specialised over 50s life insurance through Lloyds Bank, although you can apply for their term life insurance if you’re under 60 years old.

Over 50s life insurance is a type of guaranteed acceptance policy that provides cover for applicants over 50 (usually up to the age of 80 or 85 depending on the insurer).

Unlike term life insurance, you don’t have to answer any medical or health questions during the application process, but the maximum pay out amount is lower due to this.

Many people take out an over 50s policy to help minimise the burden of funeral costs or to leave a small inheritance for their loved ones after they’re gone.

At Reassured, we can compare over 50s life insurance quotes from top UK insurers to help you find a suitable deal. Quotes start from just £5 a month + .

What about whole of life insurance?

No, Lloyds Bank doesn’t offer whole of life insurance policy options.

Whole of life insurance is different to term life insurance as it guarantees to pay out to your loved ones when you pass away, no matter when that might be.

It’s typically taken out by those who want to leave a help cover an inheritance tax bill on a large estate, help pay for a funeral and/or leave a financial legacy.

Whole of life cover is more expensive than other types of life insurance as it provides lifelong protection and a higher cover limit than what you can get with an over 50s plan.

At Reassured, we can compare whole of life insurance quotes from leading insurers, with prices starting from just £8 a month ± . Get in touch for a free quote comparison.

Does Lloyds Bank offer joint life insurance?

No, it’s not possible to get joint life insurance through Lloyds Bank, but it’s possible to get joint life insurance through most other insurers.

If you’re in a couple and you’d like to protect each other if one partner passes away, then this type of policy could be a good option depending on your circumstances.

Joint life insurance can be cheaper than buying two separate policies, but it does only provide one pay out upon the first death and then expires.

For more information on life insurance options for couples and spouses, contact Reassured. We can help compare various quotes to help you make a fully informed decision.

Is Lloyds Bank life insurance right for you?

Whether Lloyds Bank life insurance is right for you or not will depend on your personal circumstances and needs.

Lloyds life insurance may be right for you if:

  • You’re aged between 18 - 59
  • You’re looking for term-based cover that protects your home and family during a set period
  • Your mortgage and other financial commitments equal to less than £500,000 (the maximum cover amount available with Lloyds)
  • You’re in good health
  • You’re looking for a single life insurance policy to cover just you
  • You don’t mind having a basic policy that has minimal features and benefits

Lloyds life insurance may not be right for you if:

  • You’re aged over 60 as this is the maximum age limit
  • You’re looking for lifelong cover that guarantees to pay out whenever you pass away
  • You want to help cover an inheritance tax bill
  • You have any pre-existing medical conditions
  • You’re looking for a joint life insurance policy to cover you and your partner
  • You’d like to have a comprehensive policy that has a good level of features and benefits

Lloyds life insurance phone number

Life insurance taken out through Lloyds Bank is provided by Scottish Widows.

If you’re an existing customer and have a query, or need to make a claim, you’ll need to contact Scottish Widows.

If you’re a new customer then you can get in touch with Cavendish Online for free advice on Scottish Widows life insurance and/or critical illness cover. The phone numbers are below.

Scottish Widows phone numbers

For policies taken out through online banking: 0345 608 0378.

For policies taken out through a financial advisor: 0330 678 1060.

Cavendish Online phone numbers

For Lloyds Bank customers: 0800 131 0014.

Direct phone number: 01392 43 94 37.

You can also get in touch with Scottish Widows by using their online enquiry form or sending a letter with the details of your query.

Lloyds Bank do not provide life insurance quotes or advice about their life insurance options over the phone, so there’s no contact number for this.

Lloyds life insurance claims

As mentioned, Lloyds Bank life insurance claims are handled by Scottish Widows.

To make a claim, you can fill in an online claim form via the Lloyds Bank website or you can contact Scottish Widows directly.

You’ll need the policyholder’s details:

  • Name
  • Date of birth
  • Date of death
  • Last known address

Once a claim has started, Scottish Widows will request that you send some key documents, such as a death certificate or medical notes from a GP.

In 2022, Scottish Widows paid out £199 million worth in claims for life insurance and critical illness, with 98% of all claims being paid.

Lloyds Bank life insurance review verdict

It may seem like the easy option to take out life insurance through your bank, but this may not present you with the best deal or the right policy for your requirements.

As mentioned, Lloyds Bank life insurance is rated as average or below average by experts, which means they don’t offer extra benefits and features that other policies may offer.

It’s important to shop around and compare quotes from different insurers before settling on one policy, to make sure you’re making the right choice.

Especially as once you take out life insurance, it’s difficult to make changes and cancelling your cover will result in lost premium payments.

At Reassured, we’ve helped more than 1.5 million people in the UK find affordable financial protection for their loved ones, so why not enquire today?

Our life insurance and critical illness cover quotes are free and without obligation.

Sources:

[1] https://www.lloydsbank.com/life-insurance

[2] https://www.defaqto.com/star-ratings/life-protection?search=lloyds%20bank

[3] https://adviser.scottishwidows.co.uk/products/protection/claims/claimsstats.html#

[4] https://www.finder.com/uk/mortgage-statistics

[5] https://www.nimblefins.co.uk/average-uk-household-budget

[6] https://www.finder.com/uk/debt-statistics

[7] https://cpag.org.uk/sites/default/files/files/policypost/Cost_of_a_child_2022.pdf

[8] https://www.sunlife.co.uk/funeral-costs/

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