Friends Life Insurance Review 2025

Life insurance offers peace of mind and financial security for your loved ones who depend on you and your income. If you’re considering life insurance, let’s explore some providers and their products to determine the right fit for you.

Who Were Friends Life Insurance?

Friends Life was acquired by Aviva Insurance in 2015. It was originally established in 2008 to introduce a fresh perspective to the British life insurance market. Friends Life no longer operates under its original name; however, Aviva continues to manage existing Friends Life policies. Although Friends Life has ceased trading, the terms and conditions of existing policies remain valid as per the policy documents.

Summary of Friends Life Insurance Products

Friends Life Insurance previously offered a range of life insurance types, often with optional add-ons for customers.

Level Term Cover

With Level Term Cover, the payout amount remains constant throughout the policy term. For example, if you selected a £20,000 lump sum at the start of a 25-year policy, the payout would still be £20,000 at the end of that 25-year period.

Decreasing Term Cover

Decreasing Term Cover provides a payout that reduces over the policy term. This option typically has lower premiums and is suitable for covering liabilities that decrease over time, such as a long-term loan. If you initially have £20,000 of cover for a 25-year policy, the potential payout will decrease to £0 by the end of the term. Friends Life also provided a Mortgage Protection Policy, a type of decreasing term cover designed to align with mortgage repayments and interest rates.

Both Level and Decreasing Term covers featured fixed premiums for the entire duration of the policy.

Renewable Term Cover

Renewable Term Cover involved premiums that were reviewed annually and could fluctuate, either increasing or decreasing. This type of policy allowed individuals focused on improving their health and lifestyle to potentially benefit from reduced premiums upon annual review.

Critical Illness Cover

Friends Life allowed policyholders to include Critical Illness Cover with their Life Insurance policies or purchase it as a separate policy. While Life Insurance pays out upon the death of the policyholder or in the event of a terminal illness, Critical Illness Cover pays out upon the diagnosis of a specified serious illness. It was designed to alleviate financial strain if you became unable to work and earn income due to serious illness, helping you and your dependents manage debts and other financial obligations.

Friends Life Life Insurance Product Offerings

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Life Insurance Features

• Provides a lump sum payout upon death or diagnosis of a terminal illness, where terminal illness is defined as an advanced, progressive condition expected to lead to death within twelve months, and diagnosed within the policy term.
• Option to choose between single or joint policyholders.
• Policy types included:
  • Level Term, Decreasing Term, and Renewable Term Cover, each with a critical illness cover option.

• Accidental Death Benefit: coverage provided for accidental death (as defined in the policy wording) between application and acceptance.
  

  Additional Benefits

  • Fracture Cover: benefit provided for medical expenses related to fractures resulting from an accident.
  • Optional Total Permanent Disability: optional add-on cover providing a benefit in the event of Total Permanent Disability.

  Minimum and Maximum Ages/Policy Term

  • Minimum age at entry: 18, maximum age at entry: 74.
  • Maximum Policy Term: 5-40 years or until age 84, whichever is sooner.

  Reasons for Potential Non-Payout

  • Inaccurate policyholder information provided at the time of application.
  • Suicide or self-inflicted injury within the first 12 months of the policy.
  • For policies with Critical Illness Cover, diagnosis must be for one of the illnesses specified in the policy document.
  • Failure to maintain policy premium payments.

  Please note: Policyholders must reside in England, Wales, Scotland, or Northern Ireland (excluding the Isle of Man and the Channel Islands).

  Advantages

  • Flexible coverage options, including Level, Decreasing, and Renewable Term Covers to suit various needs. The availability of annually reviewed premiums is beneficial for those expecting lifestyle and health improvements, potentially leading to reduced premiums.
  • High maximum coverage amounts were available, with payouts up to £10,000,000, exceeding many other Life Insurance products.
  • Option for single or joint coverage offers a cost-effective way to protect individuals and partners.
  • Fixed premiums are available, ensuring consistent monthly costs throughout the policy term, providing predictable budgeting.

  Disadvantages

  • Term limits: Maximum policy terms of up to 40 years or until the policyholder reaches 84 years of age, whichever comes first. Some insurers offer Whole Life coverage, which Friends Life did not.