Halifax is a well-established British insurer, with roots going back to 1853 and
now operating as part of the Bank of Scotland. Halifax offers a range of
financial services including banking products, insurance, and mortgages.
Halifax Life Insurance gives the policyholder and their loved ones financial
peace of mind, so that should the worst happen, any following financial
obligations or burdens will be met.
We’ll go into more detail below, but the life insurance products Halifax offers
include: level term policies, decreasing term life policies, increasing term
life policies and whole of life policies.
The level term policies that are provided offer a fixed amount of coverage
payout and guaranteed premium across the policy period. In this way you know
exactly what your premium outlay for the duration of the policy, and can be
fixed into your budget.
This product is suitable for those with long-term loans or mortgages, and those
looking to protect their dependents from any outstanding monies owed in the
event of their passing. The payouts decrease over time, and will eventually end
up at zero. This runs in tandem with your mortgage for instance, which will also
decrease as you pay it back.
One thing to note is that most other life providers have a predetermined
decrease rate for this kind of product. Halifax lets you choose the rate at
which your policy decreases, allowing you to decide how and when your cover
Halifax’s increasing term life coverage is a good option for those concerned
about the long term impact of the financial markets on their life payout. With
Halifax’s Increasing Term cover, your payout will annually increase in line with
inflation. You might typically see anything from the minimum of 2% up to a
maximum of 10%. Of course, there’s no rainbow without the rain, and your premium
will also increase too.
It’s important to note here that if this coverage is opted for, premiums
increase at a rate of 1.4 times the percentage increase of your benefit. Other
insurers will match the increase of your benefits and premiums rather than
applying a premium increase in excess of your benefit increase.
The policies mentioned above will come with a maximum age limit, upon which the
policy will expire and coverage will cease. There will be no cash in value and
so no premiums will be returned. If you are looking for a more guaranteed life
insurance cover, then you can opt for the Whole of Life cover which does exactly
that, lasting until the event of your death.
Whilst Halifax offers a dependable and stable life insurance policy (it has been
around for over a hundred years) there are some drawbacks. Its increasing term
cover gives a disproportionate increase for a policyholder’s monthly premium
that is 1.4 times the increased payout. As mentioned, most insurers offer
premium increases that match their payout increases. Furthermore, Defaqto, the
independent consumer review service, has given Halifax’s life policies a rating
in 2020 of two Stars out of five. This deems the product to be below average
offering in the market and that being the case, it might be pertinent to compare
this with other alternatives.