Co-op Life Insurance Review 2025

The Co-operative Group, known as Co-op, traces its origins to the Rochdale Society of Equitable Pioneers, established in 1844. In 1863, this cooperative merged with other co-op groups to form The Co-operative Wholesale Society (CWS). A century later, it evolved into the Co-operative Group.

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

Life Insurance Offered by Co-op

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

Co-op provides a variety of life insurance options, including supplementary add-ons to enhance your primary policy. The two main types are:

• Level Term Insurance: This policy maintains a consistent payout value throughout the policy term. It is commonly used to cover interest-only mortgages or to provide a lump sum for beneficiaries upon death. The premium remains constant for the duration of the coverage.
• Decreasing Term Insurance: This policy’s payout value reduces over time, making it suitable for covering repayment mortgages or other debts that decrease. As the payout value diminishes, the policy premiums are also lower during the coverage period.

Additionally, you can choose supplementary insurance options to complement your main policy:

• Serious Illness Cover: This provides extra financial security by offering a lump sum payment if you are diagnosed with or experience conditions such as cancer, heart attack, multiple sclerosis, benign brain tumour, dementia, or stroke. This cover is supplementary and cannot be purchased as a standalone policy.
• Co-op Funeral Plan: Designed to help cover funeral costs and provide peace of mind for your loved ones, with various packages available.

Features and Benefits of Co-op Life Insurance

Co-op life insurance policies come with several features and benefits that may influence your decision. Key advantages include:

• Payment Holiday: After your policy has been active for at least 12 months, you are eligible for up to two payment holidays during your coverage term. Each holiday can last for a maximum of six months, offering financial flexibility during challenging months.
• Fixed monthly payments: Your premium remains consistent throughout the policy term unless you make changes to your coverage.
• Payment Within 10 Days: Co-op aims to process and pay out claims within ten days of receiving all necessary information.
• Free Terminal Illness Cover: Co-op provides early payment if you are diagnosed with a terminal illness.
• Co-op members receive a 5% discount on their life insurance. Membership requires using another Co-op product or service.
• Maximum coverage of £500,000.

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

We compare plans from the leading life insurance providers Compare quotes now

Co-op provides a life insurance policy specifically for individuals over 50, guaranteeing acceptance for all applicants without a medical examination. Policy benefits include:

• Full cover after two years.
• Welcome Gifts: Co-op sometimes offers promotions for new customers. Please check their website for current offers.

Important considerations for the Co-op’s over 50s policy:

• If you miss a monthly payment and are less than halfway through your coverage term, your policy will be cancelled without any refund.
• You are obligated to pay for the policy until age 95 or until death, whichever occurs first.

Overview of Co-op Life Insurance Key Policy Details

Can You Make Changes To Your Policy?

You can contact Co-op to modify your coverage level and policy length. Note that while you can decrease your coverage, increasing it is not permitted.

Co-op Life Insurance Ratings

Independent rating agencies assess the value and effectiveness of insurance services, providing reviews of insurance policies. These ratings are useful for comparing policies from different companies.

Fairer Finance awarded Co-op its Bronze Ribbon and provided the following ratings:

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

Defaqto, a UK rating company, awarded 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 is determined by several factors, including your age, medical history, occupation, health status, and smoking habits. However, to give you a general idea, consider this example:

• A non-smoking 30-year-old seeking £150,000 of mortgage cover over 25 years could expect to pay around £9 per month for a level term policy.
• The same applicant opting for a decreasing term policy might pay approximately £7 per month.

These estimates do not include the cost of Co-op Serious Illness Cover, which is an additional expense.

Is Co-op Life Insurance Right For You?

Co-op offers an excellent Over 50s insurance policy, as highlighted by its Defaqto rating. If you are in this age group, their life policies are worth considering. However, the absence of whole of life insurance or joint-life policies may be a disadvantage for some.

If payment flexibility is important to you, Co-op’s Payment Holiday feature is a significant benefit not commonly offered by other insurers. For most individuals, the maximum payout of £500,000 will be sufficient. However, if you require higher coverage, Co-op may not be the ideal choice.

Defaqto ratings