Royal London life insurance review

We’ve analysed the life insurance from Royal London to help you decide if it can offer your loved ones the right protection when it matters most.

Life insurance can offer peace of mind for your family when you’re gone. But with so many types to choose from and with so many insurance providers offering this cover, we want to help you find what you need.

Royal London offers three types of life insurance: an adapted policy specifically for over-50s as well as tailored policies for those with different requirements. The insurance provider says you can add a serious illness benefit to its life insurance policy, which automatically includes a children’s benefit. Here’s what else we think you need to know.

Royal London life insurance

• Different types of life insurance cover.
• Serious Illness Benefit cover available.
• Up to £500,000 single payment.
• Protect your family from just 23p a day.

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What is Royal London?

Royal London is one of the largest life insurance and pensions companies in the UK. It was founded in 1861 and has been operating for more than 150 years.

The Royal London Mutual Insurance Society Ltd is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

• Who underwrites the life insurance from Royal London?

  Royal London life insurance policies are underwritten by The Royal London Retention, Munich RE and Score.

What types of life insurance does Royal London offer?

Royal London offers three types of life insurance:

• Level cover
• Decreasing cover
• Family income benefit
• Over-50s life cover
• Diabetes life cover

Royal London also offers the following:

• Whole of life plan. This plan is only available through a financial adviser and is for those thinking about inheritance tax while wishing to provide for their families or protect a business after they’ve gone.
• Serious illness benefit (optional extra). This can be added to any life insurance policy to provide the extra protection of a single cash lump sum (serious illness payout) if you develop one of the six illnesses listed by Royal London. The payout is dependent on your age and ranges from £125,000 to £350,000. With this optional extra, you automatically have the children’s benefit, which pays out if any of your children develop one of the six serious illnesses listed.

Aside from life insurance, Royal London also offers two funeral plans that spread out the cost of a funeral with affordable payments.

• The Traditional Plan. This plan is for anyone wishing for a more conventional funeral and funeral service organised with the help of a funeral director.
• The Alternative Cremation Plan. This is for anyone wishing a no-fuss alternative such as a direct cremation without a funeral service.

What’s not covered?

Royal London’s life insurance policies are for protection only and have no cash value unless a claim is made.

As with all insurance, there are exclusions. These include the following:

Am I eligible for Royal London life insurance?

You can apply for a Royal London life insurance policy if you meet the following criteria:

• You are a UK resident
• You are aged between 18-70
• You are not a member of the Armed Forces, Army Reserve or Reservists

What factors affect the price I’ll pay for life insurance?

• Age. Expect to pay more for a premium the older you get. The general rule of thumb for life insurance is that the younger you are when you take out a policy, the cheaper the premium is likely to be.
• Tobacco or alcohol use. How much or how little you smoke or drink can have an impact on the cost of your premium. Due to a proven link between smoking and serious illnesses, smokers can ultimately live shorter lives and are therefore likely to pay more.
• Cholesterol or other health criteria. Weight, cholesterol, psychiatric diagnoses and serious medical conditions can also affect your premiums. Your risk profile may not be rated as high if you can manage your condition with medication, therapy or other treatment.
• Family health history. There’s not a lot you can do about your family’s health, but if there’s a hereditary illness in your family, your premium is very likely to increase.
• Amount of cover needed. The greater the level of protection you choose, the higher the premium is likely to be.

Frequently asked questions

• Can I add serious illness benefit after my policy has started?

  No, serious illness benefit cannot be added to a policy once it has already begun.

• What are the serious illnesses covered by the serious illness benefit?

  Royal London lists the following as its six serious illnesses that are covered by the serious illness benefit (although conditions do apply): Cancer, heart attack, stroke, multiple sclerosis, benign brain tumour and dementia.

• What changes can I make to a life insurance policy?

  You can reduce your monthly payments, but keep in mind that this will reduce your payout.
  You can also reduce the duration of your policy, but it cannot be to a term of less than five years.
  It’s also worth noting that if you do have the serious illness benefit included on your policy, you cannot increase the payout once your policy has begun.

• What happens if I miss a payment?

  Royal London will give you 60 days from the date of the missed payment to pay it. If you make up the payment within 60 days, your policy won’t be affected. However, if you miss a payment and you fail to make up the payment within 60 days, Royal London will cancel your policy immediately after the end of the 60-day period.

• Will my payout be taxed?

  Your Royal London payout is likely to be free from UK income tax and capital gains tax, but your beneficiary may need to pay inheritance tax as it may form part of your estate when you die. It’s also worth noting that tax rules could change in the future, which might affect the tax implications on your payout.