Royal London Life Insurance | ActiveQuote
Royal London has been established for over 150 years and is the largest mutual life insurance and pension company in the UK. Royal London has a number of specialist entities under its umbrella, allowing for a few desirable life insurance packages. Here, we list the benefits and features alongside a general overview of Royal London life insurance.
Types of Royal London Life Insurance Cover
Royal London life insurance has three distinct packages:
- Level Cover
- Family Income Benefit
- Decreasing Cover
- Over 50s Life Cover
To qualify, an applicant must be aged between 18 and 70. Members of the Armed Forces, Army Reserve or Reservists cannot apply. The minimum term length is 5 years with a maximum cap of 50, the cover ends at 80. A simple medical questionnaire is the only other prerequisite.
Royal London Life Insurance Level Cover
Level Cover means the payout and monthly premium of the cover remain the same for the entire term of the policy, but it won’t increase in line with inflation. Those applying for the cover decide on the term and pay-out amount. Royal London’s life insurance level cover is well-suited to those who are paying off a mortgage or another debt. That way, the amount they are covered for can match the debt (interest included), so they can be covered after death, stopping loss of the family home for example. Premiums begin at £7 per month, with terminal illness cover included at no extra cost. Payout is as a cash lump sum.
Royal London Life Insurance Family Income Benefit
Family income benefit totally changes how payouts work. Instead of coming out a cash lump sum, payments are released on a monthly basis. That way, a deceased insured party’s family can organise their finances more efficiently instead of having the stress of organising one large lump sum. Payment begins upon the death of said insured party and continues until the end of the policy. This is an excellent option for those who want to maintain a family’s standard of living and keep them on top of their bills. Monthly premiums never increase and payouts are never taxed if they’re up to £2,500. Premiums for this, too, start at £7 per month.
Royal London Life Insurance Decreasing Cover
Decreasing life cover is specifically designed for mortgages. The pay-out amount falls year on year in line with the total mortgage repayments, with the payout as a cash lump sum. This means, should the insured party die, then their family can keep the family home. For Royal London, the reductions fall in line with a fixed 7% interest rate, so if a mortgage is at or under that level, the total pay-out should cover the mortgage. Monthly payments stay the same, with them being lower than level cover insurance. They start at £7 per month, with terminal illness cover included for free.
Over 50s Life Cover
Royal London also offers over 50s life insurance, with guaranteed acceptance for UK residents aged between 50 and 80. Premiums begin at £3.95 a month, with immediate cover after an accidental death. Full cover is available after just one year, with “fairer cover”, which means if you have to stop paying over half-way through the policy, then your family is still eligible for half of the cover.
Other Types of Benefit
Serious illness benefit can be purchased, which offers extra protection for insured party’s and their children. This add-on gives cover for six defined illnesses. Children’s benefit is also offered, which provides cover for children over 30 days old on the same conditions as serious illness benefit, paying out at a maximum of £25,000. Terminal illness cover is included for no extra cost with all packages.
Royal London Life Insurance Review and Results
As of 2017, Royal London life insurance recorded the following results:
- Almost £175m was paid in life and terminal illness claims
- 97.3% of term insurance claims paid
- An average of £113,000 per claim