Co-op Life Insurance Review 2023

The beginnings of the Co-Operative Group, which operates under the name Co-Op, can be traced back to the establishment of the Rochdale Society of Equitable Pioneers in 1844.

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The beginnings of the Co-Operative Group, which operates under the name Co-Op, can be traced back to the establishment of the Rochdale Society of Equitable Pioneers in 1844. By 1863 the cooperative merged with various co-op groups to create The Co-operative Wholesale Society (CWS), and only 100 years later, it became the Co-Operative Group.

The Co-op offers its life insurance through Co-op Insurance Services, backed by The Royal London Group.

Life Insurance Offered by Co-op

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Co-op life insurance

The Co-op offers a range of life insurance options, including add-ons that you can include with your primary policy

The Co-op offers a range of life insurance options, including add-ons that you can include with your primary policy. The two main types are:

  • Level Term Insurance: This option keeps your payout value the same during your policy period. Common uses for this policy include paying an interest-only mortgage or leaving a lump sum for loved ones when you pass away. The premium cost remains the same throughout the coverage term.
  • Decreasing Term Insurance: The payout value of this policy decreases over time. As a result, it is a fantastic way to cover a repayment mortgage or other debt payments that will decrease over time. Since the value drops, the premium of these policies is also reduced during the coverage period.

In addition, you can take out other insurance options to supplement your primary policy.

  • Serious Illness Cover: This provides an extra layer of safety by giving your loved ones a lump sum if you experience or are diagnosed with cancer, heart attack, multiple sclerosis, benign brain tumour, dementia, stroke. Note that this is an additional one and can’t be taken out as a sole policy.
  • Co-op Funeral Plan: To ensure your loved ones are covered when you pass away, with a range of packages to choose from.

Features and Benefits of Co-op Life Insurance

The Co-op provides a series of benefits and features with its life insurance policies that could be a deciding factor when taking out a policy. The main ones are:

  • Payment Holiday: If you’ve had your policy for at least 12 months, you’re entitled to take out a maximum of two payment holidays throughout your coverage term. Each payment holiday can be for a maximum of six months, offering some breathing space on costly months.
  • Fixed monthly payments: Your premium stays the same throughout the policy term unless you make changes.
  • Payment Within 10 Days: The Co-op aims to payout claims within ten days of submitting all information.
  • Free Terminal Illness Cover: The Co-op will make an early payment if you’re diagnosed with a terminal illness.
  • Co-op members get 5% off their life insurance. To be a member, you need to be already using one of the Co-op’s other products or services.
  • Maximum coverage of £500,000.

Does Co-op Offer an Over 50s Life Insurance Policy?

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The Co-op offers a life insurance policy specifically for over 50s, with guaranteed approval for all applicants and no requirement to undergo a medical examination. Benefits of this policy include:

  • Full cover after two years.
  • Welcome Gifts: The Co-op usually runs welcome promotions for new customers. It’s currently offering either one night away for two (with breakfast included), a National Trust gift card worth £100, or a £100 Argos gift card. This offer runs out at the end of December 2021.

Things to note about the Co-op’s over 50s policy:

  • If you’re less than halfway through your coverage term and you miss a monthly payment, your policy will be cancelled, and you’ll get nothing back.
  • You’ll be liable to pay for your policy until you’re 95 or you pass away, whichever comes first.

Overview of Co-op Life Insurance Key Policy Details

Cover Options Level Term. Decreasing Term.
Cover Period Between 5 to 50 years.
Critical Illness Cover Available for an extra fee.
Maximum Applicant Age 70.
Minimum Entry Age 18.
Whole of Life Policy Not available.
Joint Life Policy Not available.

Can You Make Changes To Your Policy?

You can contact the Co-op to make changes to the level of cover and length of your policy. Note that you can reduce the level of cover, but you can’t increase it.

Co-op Life Insurance Ratings

To measure the value and effectiveness of services, some independent rating companies provide reviews on insurance policies. This is a valuable tool to check and compare policies between companies you are interested in using.

The rating firm Fairer Finance awarded the Co-op its Bronze Ribbon award and rated the company:

  • 80.25% for claims score
  • 85.79% for complaints performance
  • 61.45% for transparency
  • 76% for customer experience

The UK rating company Defaqto awarded the Co-op a 2 Star Rating for its Co-Op Life Insurance With Optional Serious Illness policy and a 5 Star Rating for its Co-Op Over 50 Life Insurance.

How Much Does Co-op Life Insurance Cost?

Your Co-op life insurance premium will depend on various factors, such as your age, medical history, occupation, health condition, and smoking status. However, to give an idea, here’s an example:

  • For a non-smoking 30-year-old looking to cover a £150,000 mortgage over 25 years, the cost would be around £9 per month with a level term policy.
  • The same applicant looking for a decreasing term policy would pay around £7 per month.

Note that these estimates don’t take into account the Co-ops Serious Illness Cover, which costs extra.

Is Co-op Life Insurance Right For You?

The Co-op offers a fantastic Over 50s insurance policy, as evidenced by its Defaqto rating. If you fall into that category, you should seriously consider the company’s life policies. However, the lack of whole of life insurance or joint-life policies might be a deal-breaker for some.

If you feel you may need flexibility with your payments, the Co-op’s Payment Holiday feature is a great option, which many insurance companies don’t offer. For most people, the company’s max payout of £500,000 will be enough. However, if you need a higher coverage level, the Co-op is probably not for you.

Defaqto ratings

Type Plan name Rating
Critical illness (decreasing) Co-Op Life Insurance With Optional Serious Illness 2
Critical illness (level term) Co-Op Life Insurance With Optional Serious Illness 1
Life assurance (decreasing) Co-Op Life Insurance With Optional Serious Illness 2
Life assurance (level term) Co-Op Life Insurance With Optional Serious Illness 2
Over 50s life assurance Co-Op Over 50 Life Insurance 4
Defaqto ratings were reviewed on 01/10/2023