Guide to Nationwide life insurance

Life insurance is a way to protect the people who rely on you, should the worst happen. It means a lump sum payment if you die during the length of the policy (subject to exclusions).

You can tailor your cover to suit you and your family’s needs. Choose the type of cover to best suit you. And whether to add an optional extra like critical illness cover.

Life insurance may be for you if have financial dependants.

Do you have children? A spouse or partner? A mortgage that you share with someone else? Or maybe you are a caregiver with people who rely on your support. If so, it’s worth thinking about what would happen to them financially if you were no longer around.

The payment they get from a life insurance policy could help support them during a difficult time.

You can take out life insurance any time as long as you are over 18.

Most people start considering it when they experience a life change. We often see people take out life insurance, or update an existing policy, when they:

• buy a house
• get married
• have children
• get a new job
• separate or get divorced
• become a carer.

Remember that, in most instances, your policy will be cheaper the younger you are.

Certain jobs, pre-existing health conditions or hobbies may also impact the cover you can get.

We also have age restrictions for life insurance applications.

To be eligible for level cover, you need to be between:

• 18 and 77 years old
• 18 and 67 if you add critical illness cover.

To be eligible for decreasing cover, you need to be between:

• 18 and 74 years old
• 18 and 64 if you add critical illness cover.

There are 2 types of life insurance cover: level and decreasing.

When choosing between them, the main difference is the payout amount. The lump sum of a level cover policy will stay the same throughout the policy. For decreasing cover policies, the amount will go down over time

A level cover policy means that the payment amount stays the same throughout the length of time you are insured for. So, your loved ones would receive a specific lump sum, that they can use for a number of reasons.

It could be used for things like:

• rent payments
• childcare or school fees
• paying off debts
• a savings buffer for your dependents
• an interest only mortgage - as the amount you owe won’t have gone down over time.

Sometimes called, ‘mortgage protection’, decreasing cover is usually chosen to pay off a repayment mortgage. The lump sum you’re insured for reduces over time, alongside your mortgage. This means it can be used to pay off that debt.

With this type of policy, while your level of cover will go down over time, the monthly payments will not change. However, decreasing cover tends to be slightly cheaper than level cover.

You can choose to add critical illness cover to your life insurance policy at an extra cost.

Critical illness cover means you will receive a payment if you get an illness or medical condition covered by the policy (subject to exclusions).

Adding critical illness cover can help reduce the worry that can come with a medical diagnosis. It allows you to focus on your health by helping pay for things like:

• your mortgage or rent
• everyday bills and expenses
• home adaptations
• medical expenses
• help around the house or with childcare
• treating your family.

For a full list of what is covered, read the Guide to critical illness cover - PDF, 1.1MB (opens in a new window).

A Nationwide life insurance policy with critical illness cover also provides cover your children.

Should a child be taken ill, or injured, your claim could help pay for:

• time off work to care for them
• accommodation near a hospital for up to 3 months
• any adaptive equipment you may need to buy.

You’re probably the best person to answer that question. Things you'll want to think about include:

• How much it would cost to pay off your mortgage.
• How much your family might need to cover their living expenses.
• The cost of any nursery, school or university fees.
• Any debts that would need repaying.
• How much you’d like to leave your dependants.
• Any relevant insurance that you might already have. Is it enough? Or is there a gap?

The longer the policy lasts and the bigger the lump sum, the more it will cost. Other things that affect the cost of life insurance include:

The earlier you take out life insurance, the cheaper the premiums are likely to be.

Certain jobs, pre-existing health conditions and being a smoker will make your premiums more expensive.

The longer your policy runs for, the more monthly payments you have to make.

Decreasing cover is cheaper than level. And a policy will cost more if you add extras like critical illness cover.

Everyone's cover needs are different.  Think about your circumstances and choose the best option for your loved ones.

You might just want cover for the length of time your mortgage has left to run. Or until your children are 18 or have completed further education.

If you have debts, like a student or personal loan, you may want to be covered until they are paid off in full.

Yes. Book a free appointment with a financial adviser at Legal & General. They will help identify your needs and suggest the protection to best suit you.

They can also help you make your application. This service is also free.

You can get an online quote within a couple of minutes. If you are happy with it, you can then continue to apply online – this will take around 20 minutes. And you may be able to start your cover straight away.

Find out more and get a life insurance quote