Natwest Life Insurance Review 2025
The National Provincial Bank was formed in 1833.
Yes, NatWest allows you to reduce your insurance amount at any time, provided it does not fall below the minimum allowed.
The National Provincial Bank was formed in 1833.
Yes, NatWest allows you to reduce your insurance amount at any time, provided it does not fall below the minimum allowed.
Fill in the form below for a FREE, no obligation quote now.
The National Provincial Bank was formed in 1833. In 1968, it merged with Westminster Bank, creating National Westminster Bank.
By the 1980s, the bank was commonly known as NatWest and offered home loans.
In 2000, NatWest was acquired by the Royal Bank of Scotland Group and currently offers banking, credit card, loan, mortgage, investment, insurance, and other financial services.
Contents
NatWest Life Insurance, provided by AIG, offers three main types of policies:
| NatWest will pay out your insurance if you: | Die or are diagnosed with a terminal illness. |
| Options: | Level term/Decreasing term/Increasing term/Family benefit/Instant |
| Policy Coverage: | Single Cover/Joint Life |
| Terminal Illness Cover: | Yes |
| Critical Illness Cover: | Yes |
| Minimum Entry Age: | 17 |
| Maximum Entry Age: | Standard Life Insurance: 86, Waiver of Premium: 54 |
| Guaranteed Insurability: | Available if the policyholder:
|
We compare plans from the leading life insurance providers
With Sixty-Plus Life Insurance, if death occurs within the first two years, one and a half times the payments made will be refunded, unless death is accidental, in which case three times the insurance amount will be paid out.
A claim for terminal illness can only be made when the person covered has been diagnosed with 12 months or less to live.
If a medical consultant cannot confirm this prognosis or expects death to occur more than one year after diagnosis, NatWest will not pay a benefit.
NatWest has a specific definition of “terminal illness” for their policies, and payouts are contingent upon meeting this definition.
Waiver of Premium – The person covered must reside in an eligible country when they become incapacitated.
To receive the Waiver of Premium benefit, they must return to and remain in the UK, Channel Islands, Isle of Man, or Gibraltar within 26 weeks of becoming incapacitated.
Yes, NatWest allows you to reduce your insurance amount at any time, provided it does not fall below the minimum allowed.
For increasing insurance policies, NatWest will notify you annually of the new insurance amount and premium. You can request to stop the annual increases at any time, freezing the insurance amount at its current level.
While you can request to restart the increases, NatWest cannot accommodate this if the insurance amount has been frozen for three consecutive years.
For sixty-plus insurance, you can stop annual increases at any time, freezing your insurance amount at its current level.
Yes, you can reduce the length of your insurance policy at any time, as long as the new policy length is not less than NatWest’s minimum and the reduced payments do not fall below the minimum level.
If you have a joint life insurance policy, you can request to convert it into one single life insurance policy or two separate single life insurance policies.
However, the total amount of the new single life insurance, or the combined amount of two new single life insurances, cannot exceed 100% of your original insurance amount.
This change is only permissible within six months of separation and taking out new mortgages, and no later than three years before your insurance policy is due to end.
Both policyholders must agree to this change, and NatWest will require evidence of the separation and new mortgages.
There is a limit to the increase in your monthly benefit.
The increase cannot exceed the lower of 50% of the original monthly benefit or £625. Additionally, you have the option to:
Defaqto ratings are an independent assessment of financial products, designed to help consumers make informed decisions. They use a star rating system from 1 to 5, with 5 stars indicating the highest quality products. These ratings are based on a detailed analysis of policy features and benefits.
As of March 7, 2025, NatWest’s Defaqto ratings show a mixed performance across their life insurance offerings. While some policies achieve high ratings, others are more moderate. Here’s a summary:
Compared to competitors, NatWest’s direct life assurance stands out with a 5-star rating, matching providers like Aviva and Legal & General in this category. However, for critical illness cover, particularly level term and decreasing options, NatWest’s 3-star rating is less competitive against companies like Zurich and Scottish Widows, who frequently achieve 5-star ratings in critical illness categories. Legal & General also secures 5 stars for their Over 50s life assurance, outperforming NatWest in this specific area.
For consumers, these ratings suggest that NatWest offers strong direct life assurance options. However, for those seeking critical illness cover, especially level term or decreasing policies, or Over 50s plans, exploring alternatives with higher Defaqto ratings might be beneficial to ensure more comprehensive coverage and features.
NatWest aims to provide simplicity and ease of access for customers seeking life insurance quotes and benefits.
Defaqto ratings, updated as of March 7, 2025, show NatWest achieving 5 out of 5 stars for direct life assurance, 4 out of 5 stars for critical illness (direct with life cover) and Over 50s life assurance, and 3 out of 5 stars for level term and decreasing life assurance and critical illness policies.
NatWest offers a broad age range for life insurance applicants across their policies and provides three times the payout for accidental death within the 24-month waiting period, a benefit not always offered by competitors.
However, compared to some leading insurance providers, NatWest Life Insurance may not cover as many types of critical illnesses.
For instance, certain types of cancer, including some prostate cancers, are not covered, despite the fact that approximately one in nine men will be diagnosed with prostate cancer in their lifetime.
Coverage for certain types of heart attack and stroke may also be limited. NatWest’s insurance options appear relatively basic and may offer less flexibility compared to other companies.
For example, it is not clear whether you can choose different levels of cover for each person under a joint life insurance policy.
The sixty-plus life cover offers limited flexibility, as reducing monthly payments may not be possible.
Additionally, customers may face a 24-month waiting period before receiving full benefits, whereas some competitors offer shorter waiting periods, such as 12 months.
Furthermore, similar to their other policies, the options for the sixty-plus life cover are somewhat basic and may lack extra features like optional funeral benefits that some competitors provide.
NatWest life insurance could be a suitable option if you are insuring only yourself and are primarily interested in direct life assurance. However, if you are seeking coverage for critical illness, family members, or Over 50s plans, exploring other companies that offer more extensive extras and benefits, and potentially higher Defaqto ratings in those areas, may be beneficial.
| Type | Plan name | Rating |
|---|---|---|
| Critical illness (decreasing) | AIG Critical 3 With Life Insurance | 3 |
| Critical illness (level term) | AIG Critical 3 With Life Assurance | 3 |
| Critical illness (direct with life cover) | AIG Critical 3 With Life Assurance | 4 |
| Life assurance (direct) | AIG Critical 3 With Life Assurance | 5 |
| Life assurance (direct) | AIG Life Insurance | 5 |
| Life assurance (decreasing) | AIG Life Insurance | 3 |
| Life assurance (level term) | AIG Life Insurance | 3 |
| Over 50s life assurance | Guaranteed Sixty-Plus Life Insurance (Fixed) | 4 |
| Over 50s life assurance | Guaranteed Sixty-Plus Life Insurance (Increasing) | 4 |
