Lloyds Tsb Life Insurance Review 2025

Lloyds Bank is a retail bank in the UK, which was established when Lloyds Bank merged with TSB Group in 1995. The bank was renamed Lloyds Bank in 2013.

This banking group has more than 45,000 employees and its main businesses are banking and insurance services. Lloyds Bank provides its clients with a lot of different insurance options: car, travel, home, pet or caravan insurance services. As for life insurance, TSB offers few options that can be chosen: life cover, lifetime cover, critical illness cover, income and mortgage protections. None of these policies have cash in value. This means that if a person terminates the policy, they gain nothing from the premiums they have paid.

Lloyds Bank Life cover

Lloyds provides its clients with a life cover plan, which pays out a lump sum of money if the person dies or is diagnosed with a terminal illness. The person can also choose for the assured amount to be paid monthly instead of one payment. Moreover, Lloyds provides examples of how much its life insurance can cost its clients.

Let’s assume that a person wants £100,000 of cover for twenty years. For an average 35-year-old non-smoking male, the premiums could be around £7.50 a month. For a female with the same conditions, the premiums could be expected to be around £6.40 a month for life and critical illness cover together. Thus, a key advantage of Lloyds’ insurance is that these services are relatively inexpensive and accessible to many people.

Lloyds Bank lifetime cover

Lifetime cover provided by Lloyds is set to last for the person’s entire life. It pays out if the person dies. It is also possible to choose joint lifetime cover. In this case, Lloyds uses the last death rule: the sum assured pays out when both partners die. As this policy pays out only after the second partner dies, it is usually used for covering funeral and other expenses associated with death, in order for dependents not to have financial difficulties.

Lloyds Bank critical illness cover

Usually, the five main reasons for claims when individuals have critical illness cover are: cancer, stroke, heart-related problems, multiple sclerosis, and children’s claims. Critical illness cover is designed to pay out if a person is diagnosed with one of the critical illnesses from the list provided by Lloyds Bank. It is always important to review this list to know which illnesses the person is insured against. Moreover, the policy includes children’s critical illness insurance at no additional cost.

Lloyds Bank mortgage protection

Lloyds Bank also offers various mortgage protection plans for its clients: a) accident, sickness, and unemployment cover, b) mortgage payment protection, c) loan protection cover, and d) mortgage protection/decreasing term assurance services. The first three cover options guarantee that if a person is unable to work because of a covered illness or injury, their loan or mortgage payments are covered by Lloyds Bank.

As for mortgage protection cover, also known as decreasing term assurance, this plan is designed to pay out a lump sum of money if the person dies or becomes terminally ill. This sum of money is usually set to be equal to the value of the mortgage or loan. As with any other decreasing term insurance policies, the amount of cover decreases over time. Moreover, it is important to remember that if a person has a higher interest rate than assumed in the policy, or if the person changes the conditions of the mortgage, the amount of cover may not be high enough to cover the entire sum of the mortgage.

Lloyds Bank income protection

The person is insured that if they cannot work for an indicated amount of time because of sickness or injury covered by the plan, they will be paid a regular monthly income until they are able to work again. For a small additional cost, premium protection/waiver of premiums benefit can be used if the person is unable to continue working because of illness or injury protected by this plan.

Questions that will be asked

Lloyds provides a list of information that will be asked before giving an insurance quote to a client. First of all, the person will need to provide information on whether they have any other protection covers. Moreover, medical history (including treatments and dates) should be provided alongside personal information such as height, weight, and whether the person drinks or smokes.

Furthermore, Lloyds wants information on the family’s medical history, whether the person currently takes any medicines, and the name and contact details of their doctor. The person will also be asked whether they have lived abroad and practices any hazardous and dangerous activities that can increase the risk of death.

Defaqto Ratings for Lloyds Bank Life Insurance (Updated March 2025)

Defaqto ratings are an independent assessment system that helps consumers understand insurance product quality. They rate policies from 1 to 5 Stars, with 5 Stars indicating the highest quality and comprehensiveness. These ratings are designed to simplify comparing insurance offerings.

The Defaqto ratings for Lloyds Bank life insurance products, current as of March 7, 2025, show a mixed performance compared to competitors.

• Critical Illness (standalone): 3 out of 5 stars
• Critical Illness (level term & decreasing): 2 out of 5 stars
• Life Assurance (level term): 2 out of 5 stars
• Life Assurance (decreasing): 1 out of 5 stars

When compared to major competitors, Lloyds Bank’s ratings are generally lower. For instance, Aviva, Legal & General, and Zurich frequently achieve 5-star ratings across various life insurance and critical illness products. This difference suggests that while Lloyds Bank provides essential cover, their policies may offer fewer features or benefits than higher-rated providers. For consumers, this means carefully weighing the balance between cost and comprehensiveness when considering Lloyds Bank life insurance. While potentially more budget-friendly, it’s crucial to ensure the policy adequately meets individual protection needs compared to more highly-rated, albeit potentially pricier, alternatives.

Defaqto ratings