Post Office Life Insurance Review 2023

Post Office Money is a financial services brand offered by Post Office Ltd.

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Post Office Money is a financial services brand offered by Post Office Ltd. Launched in 2015, it seels credit cards, current accounts, mortgages, personal loans and insurance products.

Voted Best Direct Life Insurance Provider in 2018 by, its life insurance is sold and provided by The Royal London Mutual Insurance Society Limited, otherwise known as Royal London.

What is Post Office life cover?

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Post Office Life Insurance is a way of putting financial arrangements in place that take care of your debts and provide for your family in the event of your death. In return for paying a monthly premium, you receive peace of mind in knowing that, should the unthinkable happen, your loved ones will be able to maintain their current lifestyle without any financial problems.

Post Office life cover is available to all UK residents between the ages of 18-70, who aren’t members of armed forces, Territorial Army or Reservists.

Policies offering a lump sum pay-out of up to £500,000 can be taken out for a term of 5-50 years, but must end on the policy-holder’s 81st birthday.

Terminal illness cover comes as part of any Post Office life cover policy, and guarantees an earlier pay-out of your lump sum if you are diagnosed by a consultant as having fewer than 18 months left to live.

How much does Post Office life cover cost?

Monthly payments can start from just £7 a month, but all quotes are based on the individual circumstances of the individual (age, medical status and smoking history) and the type and duration of the required cover.

If you’re not sure how much cover you need, Post Office Money offers a handy online Life Insurance Calculator to give you a better idea of your costs.

It’s worth remembering that the sooner you start your life insurance policy, the cheaper it’s likely to be.  Giving up smoking is also something that’s likely to save you money – although, as with all life cover, you’ll need to have been nicotine-free for a minimum of 12 months.

Types of cover available

We compare plans from the leading life insurance providers

Although the Post Office plans to offer joint policies in the future, they are not available at the present time.

There is, however, a range of cover available to suit all requirements.

Level cover policies leave behind a cash lump sum for your loved ones in return for fixed monthly payments. It’s important to bear in mind that this kind of cover doesn’t take inflation into account, and the value of the pay-out can be considerably lower than anticipated, especially if taken out over the long-term.

To get a better idea of the effect that inflation can have on your lump sum pay-out, try using the Bank of England’s free inflation calculator.

Increasing cover policies take inflation into account, but your monthly premium will increase by 3% each year to provide the inflation-linked pay-out.

Decreasing cover can be useful for long-term repayment debts, such as mortgages. With this type of policy you pay lower monthly rate for cover that decreases over the term of your policy, in line with your debt.

Post Office Critical illness cover

Post Office

Critical illness cover doesn’t come as standard, but can be purchased for extra protection and peace of mind. It offers a pay-out of 25% of your life cover cash sum (up to a maximum of £200,000) if you suffer a heart-attack or a stroke (depending on its severity)during the term of the policy, or are diagnosed with any of the types of cancer listed in the terms and conditions.

This is something you’ll need to consider when applying for Post Office life cover, as it can’t be added once your policy has begun.

Post Office Over 50s Life Cover

Post Office Over 50 Life Insurance is available to UK residents between the ages of 50-80, and enables you to leave up to £10,000 to your loved ones when you die. This can be used to settle debts, pay funeral costs, or provide your family with a cash gift upon your passing.

Payments are made for a maximum of 30 years, or until the policy anniversary date after you turn 90, or until you die – whichever comes first.

No medical is required, and you won’t be asked for details of your medical history.

One useful feature of Post Office Over 50 Life Insurance is that it offers you the flexibility of reducing your cover in order to lower monthly premiums. If you aren’t sure how much cover you need, it can be worked out using the Post Office’s handy Over 50s Life Insurance Calculator.

A Funeral Benefit Option is available, which will see an extra £300 donated towards your funeral costs by Dignity Funerals.

With the average cost of a UK funeral standing at £3757, it’s certainly an opportunity worth investigating.

Post Office Free Parent Life Cover

Post Office Money’s Free Parent Life Cover is something that all parents should know about. As its name suggests, it’s absolutely free and requires no monthly premiums. Available to UK residents between the ages of 18-66, it offers free cover of £15,000 for a year if you have children under the age of 4.

Policies can be taken out for up to 8 children under the age of 4, with £15,000 of cover per child.

Applicants must be able to declare that they are not HIV positive, and that they’ve received no cancer treatments in the past 12 months.

As with most life cover policies, no pay-out will be made if your death is from suicide or self-inflicted injury; HIV-related; or caused by being under the influence of alcohol and drugs.

The Here to Help service

The Post Office’s Here to Help service is provided in partnership with RedArc, an independent nursing service that provides one-to-one long-term support if you lose someone, or are diagnosed with a serious illness – and also to your family if you pass away.

There is no extra cost to this service, and it’s possible to use it without ever having to claim on your policy.

Defaqto ratings

Type Plan name Rating
Critical illness (decreasing) Post Office Life Insurance 2
Critical illness (level term) Life Insurance With Opt CI And Children's Cover 2
Life assurance (decreasing) Post Office Life Insurance 3
Life assurance (level term) Life Insurance With Opt CI And Children's Cover 3
Over 50s life assurance Over 50s Life 4
Defaqto ratings were reviewed on 01/10/2023