NFU Mutual has a long history, having been formed in 1910 as the Midlands Farmers Mutual Insurance Society by a group of farmers to support the National Farmers Union.
Term life insurance covers you for a specific period and will payout if you are diagnosed with a terminal illness or die during the policy term.
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NFU Mutual has a long history, having been formed in 1910 as the Midlands Farmers Mutual Insurance Society by a group of farmers to support the National Farmers Union.
While the Society first offered life insurance cover in the 1920s, it wasn’t until the 1980s that it began to serve the wider community, rather than solely the farming industry. Today, policies are provided by agents based mainly in rural areas, and over 50% of people taking out life insurance policies are from outside the farming community.
Contents
There are a variety of products available from NFU Mutual. You can choose between Whole of Life, Term Life Insurance, Term Life Insurance with Critical Illness, and the Family Benefit policy. These options cover a range of needs, but you will need to assess your circumstances before deciding on a policy and choosing what best suits your needs.
As with all insurance products, the exact terms offered and the monthly premium payable depend on your personal circumstances. The Term policy is particularly flexible, allowing you to choose level cover or decreasing cover, depending on whether you expect your financial responsibilities to remain constant or decrease over time. If you have access to a local branch, you can discuss your needs in person, or you can get a quote from the call centre.
For instance, if you need a policy with a guaranteed payout, the Whole of Life option is suitable, but it comes with correspondingly higher premiums. If you only need cover for a limited period, such as the duration of a mortgage, then the Term policy could be considered.
The Whole of Life policy guarantees a payout upon your death, and the policy lasts as long as you pay the premiums. This cover can be arranged as level or increasing cover. With level cover, the lump sum is fixed, but with increasing cover, the payout will rise with the Retail Prices Index, up to a maximum of 10%. This policy is available for UK residents aged 17-84, and as with other NFU Mutual Policies, joint and single options are available.
We compare plans from the leading life insurance providers
Term life insurance covers you for a specific period and will payout if you are diagnosed with a terminal illness or die during the policy term. NFU is very flexible with the term length, and you can opt for insurance for any period between 3 and 70 years.
Again, the specifics of the policy are easily tailored to fit your needs. You can choose level, increasing, or decreasing cover depending on your future plans. With level and decreasing term policies, your premiums will remain the same throughout the term. The difference is that with the decreasing term policy, the lump sum payout reduces over time, rather than remaining fixed as with the level term option.
With increasing term policies, the payout figure rises by 5% each year, and your premiums increase accordingly.
Key points to remember with this cover are that the policy must end before your 90th birthday. This policy will pay out if a terminal illness is diagnosed during the term and can be taken out on a joint or single basis.
NFU Mutual’s Term with Critical Illness policy is an expanded version of the Term cover, which includes critical illness cover. The main difference is that premiums for the dual-purpose policy are much higher than the stand-alone Term cover.
With the Term with Critical illness policy, the time frame can be anywhere between 3 and 50 years, and the cover must end by the age of 86.
The critical illness component pays a lump sum in full for certain illnesses and a percentage for others deemed less severe, depending on the policy terms and conditions. This policy is also available with a range of options of level, decreasing, and increasing cover.
The Family Benefit policy allows you to set up a monthly income for your family for a fixed period. Again, the policy can be taken out with level, decreasing, or increasing cover.
Flexible options include the term, and you can choose any period between 3 and 70 years. It is available to anyone between 17 and 86 years old. This policy also has a terminal illness lump sum payout if you are diagnosed with an illness that gives you less than 12 months to live.
This policy is unique in that it pays out in monthly installments to your family rather than one lump sum; the idea is to provide a future ‘income’.
Defaqto ratings are an independent assessment of financial products, helping consumers understand the quality of different insurance policies. They use a star rating system, from 1 to 5 stars, with 5 stars indicating the highest quality. These ratings are based on a detailed analysis of policy features and benefits.
As of March 7, 2025, NFU Mutual has received strong Defaqto ratings across its life insurance products. Notably, they achieved 5-star ratings for:
Their Level Term and Decreasing Life Assurance policies received 4 stars, while their Protection Menu Plan is rated at 3 stars.
Compared to major competitors, NFU Mutual’s ratings are generally competitive. Aviva and Legal & General also boast numerous 5-star ratings across similar product ranges. Zurich, another key player, mirrors NFU Mutual’s 5-star achievement in Whole of Life assurance. However, approaches to Protection Menu Plans vary, with some competitors achieving 4 stars while NFU Mutual’s plan is rated at 3 stars.
For consumers, these strong Defaqto ratings suggest that NFU Mutual offers high-quality life insurance products. The 5-star ratings in key areas like critical illness and income protection indicate comprehensive and well-regarded cover. While the Protection Menu Plan rating is lower, the core life insurance offerings from NFU Mutual are highly recognized by Defaqto for their quality.
The benefits of NFU Mutual are that they offer a good range of flexible products that are easy to organise via phone or in person. The ability to take out level, decreasing, or increasing term cover provides a wide range of options. However, bear in mind that with the increasing cover option, your premiums will generally rise at a higher rate than your eventual payout.
Customer feedback rates the company as reliable and easy to deal with. Claims are dealt with efficiently, and policyholders felt it was easy to contact NFU Mutual agents. The products available from NFU Mutual are comparable to others on the market in terms of options and flexibility, and the Family Benefit plan is proving increasingly popular.
| Type | Plan name | Rating |
|---|---|---|
| Critical illness (decreasing) | YourLife Plan Term With CI Choices - Core | 5 |
| Critical illness (decreasing) | YourLife Plan Term With Cl Choices - Enhanced | 5 |
| Critical illness (level term) | AIG YourLife Plan Term With Cl Choices - Core | 5 |
| Critical illness (level term) | AIG YourLife Plan Term With Cl Choices - Enhanced | 5 |
| Income protection | AIG YourLife Plan Income Protection | 5 |
| Life assurance (decreasing) | AIG YourLife Plan Term Assurance | 4 |
| Life assurance (level term) | AIG YourLife Plan Term Assurance | 4 |
| Whole of life assurance | AIG Whole Of Life Insurance | 5 |
