Barclays Life Insurance Review 2025

Barclays is a well-known and trusted UK-based investment bank and financial services provider. One of their key offerings is life insurance, which they have split into two distinct products: a simple, basic product that almost anyone can apply for, and a more comprehensive package aimed at mortgage holders. With Barclays being such a large company in the UK, and one of the largest personal banking service providers, many people are likely considering their life insurance options, making it a good time to explore their products.

What Exactly is Life Insurance?

Life insurance is simply a policy or contract between the insurance provider and the beneficiary (the policy holder). It triggers a cash payout upon the death of the policy holder. However, some policies, including Barclays policies, may also pay out upon the diagnosis of a specified terminal or critical illness. Premiums are typically paid monthly, and for Barclays products, premiums start from just £6 per month. Let’s examine the Barclays policies in more detail.

Barclays Simple Life Insurance Policy

To be eligible for this policy, you must be aged between 18 and 74 and be a UK resident at the time of application. It is important to understand that this is not a savings plan or investment product. If you miss a premium payment, the policy will be cancelled, your cover will end 30 days after the first missed premium, and you will not receive any money back. The minimum policy length is five years, and as with all insurers, the policy includes several exclusions and limitations.

You will be covered for death from illness, injury, or accident, except in cases of suicide within the first year. Payouts for terminal illness diagnoses must meet Barclays’ payout criteria, which includes a list of covered illnesses, a common practice in the insurance industry. It should also be noted that accidental death is not covered in the following circumstances:

• Resulting from participation in a dangerous sport or activity.
• Occurring while aboard an aeroplane, except as a fare-paying passenger on a licensed aeroplane.
• While committing or attempting to commit assault or another criminal offence.
• Death from war, riot, or civil unrest.
• Death resulting from alcohol or drug use (unless prescribed by a UK doctor).
• Death resulting from an accident that occurred before your application.

Obtaining a life insurance policy from Barclays is quick and easy and can be done on their website. It’s a very simple product – the premiums and cover remain the same for the policy’s duration. It can also be good value. If you have a mortgage, you should consider their mortgage holder policy. Let’s look at the details of that policy below.

Barclays Mortgage Holder Life Insurance Policy

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As the name suggests, this policy is designed for individuals who have purchased their own home and still have an outstanding mortgage balance. In the event of death or terminal illness, a lump sum will be paid out to cover the mortgage. Critical illness is also covered, but it must meet Barclays’ definition to qualify for a payout. With this type of policy, you can opt for “decreasing cover,” where premiums decrease over the policy’s term as your mortgage is paid off, reducing the required coverage amount.

A joint life insurance policy is also available with a mortgage-holder policy. This policy covers two individuals, and upon the death of the first insured person while the policy is active, the lump sum is paid out, and the policy terminates.

Key Points

• All information provided to the insurer must be completely honest and truthful, or your policy will be void.
• If you miss a payment, your coverage will cease 30 days after the missed payment.
• You are covered for death, except in cases of suicide within the first year or accidents resulting from easily avoidable situations (see above).
• You are covered for terminal illness, provided it meets Barclays’ definition.
• The mortgage-holder policy also covers critical illness, subject to Barclays’ criteria.
• You are not covered for death caused by any pre-existing terminal illness or disease.
• You can cancel the policy within 30 days of inception without penalty.

Is Barclays Life Insurance Right For You?

Barclays is a highly respected company that offers excellent products and customer service. Indeed, their life insurance policies have received Defaqto ratings, indicating their standing in the market. Whether you are an existing Barclays customer or not, you can be confident that their insurance policies offer coverage.

For existing Barclays customers, these policies are simple and convenient. Application is quick online through Barclays online banking, and in many cases, you can receive an immediate insurance quotation. This is because they already hold your personal details, making it more convenient than applying through a third-party provider or website. The potential for instant coverage through this service is invaluable and offers significant peace of mind, making it a worthwhile consideration.

Overall, Barclays is a reputable insurance provider that offers support throughout the application process via phone or their online chat, providing prompt responses to your queries. In conclusion, choosing a life insurance policy with Barclays means you’ll be in capable hands, offering reassurance when dealing with these important matters.

Defaqto Ratings for Barclays Life Insurance (March 2025)

Defaqto ratings are an independent assessment of financial products, designed to help consumers understand the quality of different offerings. These ratings use a star system, from 1 to 5, with 5 stars indicating the highest quality products. For Barclays life insurance, the latest Defaqto ratings, current as of March 7, 2025, reveal a mixed performance across their different policy types.

Barclays achieves a strong 5-star rating for its direct life insurance and critical illness with life cover policies. However, their decreasing and level term life assurance and critical illness policies receive a 3-star rating. This indicates that while some Barclays policies are considered excellent, others are more standard in terms of features and comprehensiveness. Here’s a summary of Barclays’ Defaqto ratings:

• 5-star: Critical illness (direct with life cover)
• 5-star: Life assurance (direct)
• 3-star: Critical illness (decreasing)
• 3-star: Life assurance (decreasing)
• 3-star: Life assurance (level term)
• 3-star: Critical illness (level term)

When comparing Barclays to major competitors, we see varied strengths. Aviva and Legal & General, for example, boast a broader range of 5-star rated products across life assurance and critical illness. Zurich also demonstrates strength, particularly in whole of life and standalone critical illness. While Barclays excels in direct policies, competitors may offer more highly-rated options for decreasing and level term cover.

For consumers, these ratings suggest that Barclays’ direct life insurance options are among the best available. However, if you are considering decreasing or level term life insurance or critical illness cover, it’s wise to compare Barclays with other 5-star rated providers like Aviva, Legal & General, and Zurich to ensure you’re getting the most comprehensive cover for your needs. Defaqto ratings are a valuable tool in your research, helping you make informed decisions.

Defaqto ratings