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What is life insurance?

Life insurance will help protect your loved ones financially should you die or are diagnosed with a terminal illness during the length of the policy. You can take out a single or joint policy with Direct Line, provided by AIG, with fixed payments if you don’t make any changes.

Your beneficiary will receive a lump sum to help pay off things such as a mortgage, debts, bills and expenses. You can apply for life insurance up to the age of 75.

Many people take out life insurance at key moments in their lives, such as getting married, buying a house, having a baby or over 50s life insurance when approaching retirement.

Get a gift card worth up to £180, depending on your monthly premium, with a new life policy

Tell me more about this offer.
Only choose a premium you can afford and only apply for the cover you need. The gift card will be sent once your policy has been in force for six months.

Why choose life insurance from Direct Line?

Direct Line insurance is provided by AIG Life UK, an award-winning specialist. AIG has 1.2 million customers and recently received the 2019 Organisation of the Year award from Protection Review

Unlimited, 24/7 access to a GP

Get Smart Health services at no extra cost, giving you and your family unlimited, 24/7 access to health and wellbeing experts. This includes GP appointments over the phone or video call.
Find out more

Smart Health is provided to AIG customers by Teladoc Health. These services do not form part of your insurance contract and can be withdrawn at any time without notice.

Up to £10,000 advance payment

To bring some early financial relief once a claim has been agreed.

Once your claim has been assessed and validated, an advance payment could be released where the full amount is delayed due to legal requirements or other checks. Advance payments can take up to five working days to receive.

  • 98% of life insurance claims paid out
    Based on AIG data, 98% of life insurance claims were paid out in 2019.
  • Your life insurance monthly cost stays fixed
    If you don't change your policy, the monthly cost stays the same, helping you to budget.
  • Save 7% on your life insurance if you're already a Direct Line customer
    The discount is available for the duration of your policy when you pay a minimum of £5 a month.

What type of life insurance do you need?

How is our Over 50s Insurance different from our Life Insurance?

With Over 50s Life Insurance, you'll be insured for the rest of your life without having to go through any medical assessments. You're guaranteed to be accepted if you're aged up to 85 (81 if you smoke), and the insurance payout can go towards things such as funeral costs.

We offer two levels of life insurance:

Level term life insurance

With level insurance, you choose the amount you want paid out. This stays the same throughout the length of your policy, as do your monthly payments, unless you decide to make changes.

This may be suitable if you want to choose a specific amount of life insurance or if you have an interest only mortgage, as the cover amount remains the same.

Decreasing term life insurance

This is designed to cover a repayment mortgage. Your amount of cover will reduce each month, to reach zero when your insurance ends. This works in the same way as the outstanding amount on a repayment mortgage with an annual interest rate of 8%.

Unless you change your policy, your monthly payments stay the same throughout the length of the policy.

Mortgage guarantee for decreasing policies

With our mortgage guarantee, we'll make sure your mortgage is paid off in full if a valid claim pays out less than the outstanding mortgage debt. Terms and conditions apply.

Learn more about level and decreasing term life insurance

Placing a policy in a trust

Do you need a single or joint life insurance policy?

A single policy only covers one person.

A tax-free lump sum is paid out when the policyholder dies or is diagnosed with a terminal illness during the policy.

Learn more

A joint policy covers two people in a relationship.

A tax-free lump sum is paid to the surviving partner when the other dies, or is diagnosed with a terminal illness, during the policy.

The surviving partner will no longer have a life insurance policy, but will have the option to take out a new single life policy.

If both partners die at the same time, there will only be one payment.

Learn more

Calculate how much life insurance you may need

Think about the age of any children who depend on you financially, or the time left on unprotected loan payments, or the number of years left on your mortgage.

It's easy. Let's get started

Critical illness cover for cancer, heart attack and stroke

According to the British Heart foundation someone is admitted to a UK hospital with a heart attack every five minutes. And in the UK, at least 70% of people survive.

Serious health scares can be life-changing, even when you do survive them. That's why adding Critical 3 to your life insurance can offer that extra level of cover you may need. It means you'll be paid a sum of money if you survive 14 days after a heart attack, stroke or cancer diagnosis during your policy.

Critical 3 is an optional extra that can be added to your policy for an additional cost. You just need to buy it at the same time as you take out your life insurance with us.

Learn more

Terms and conditions apply

Important information

Things you need to know

  • If you cancel your policy or miss a payment, your cover will end after 30 days.
  • If you choose to add Critical 3 as an optional extra to your Life Insurance policy, you must purchase both at the same time.
  • This isn’t a savings or investment product and has no cash value unless a valid claim is made. Inflation may reduce the value of your cover.
  • As premiums are calculated on risk, we consider your age, health and lifestyle, including whether you smoke.

Need more help?

If you'd rather talk to us, just give us a call. We can help you choose the right kind of cover.


0800 077 8297

Opening hours:

  • Mon - Fri 8am – 8pm
  • Sat 9am – 5pm

Contact us

Download life insurance policy documents

Remember, if you already have life insurance with us, the wording of your policy may differ from the one you'll find here.

Direct Line customers are introduced to AIG Life Limited (AIG) by UKIBS


AIG policies taken out after 22 July 2019

L&G policies taken out between 1 January 2013 and 20 July 2019

Life insurance frequently asked questions

Critical illness cover is designed to pay out if you’re diagnosed with a specific illness which could have a severe impact on your life. Direct Line’s critical illness cover, provided by AIG is called Critical 3 and can be added for an extra cost when buying Life Insurance. Critical 3 gives you an extra level of cover for specific types of cancer, heart attack and stroke. Please refer to the policy documents for more information.

Yes, you can have more than one life insurance policy, and they don’t need to all be with the same provider. When you apply for a new life insurance policy, you may be asked whether you already have life insurance, as certain restrictions may apply.

You can choose how much life insurance you buy, subject to terms and conditions. You might want your policy to pay out the value of your mortgage, a specific lump sum for your dependants or provide enough to cover both. To help you get an idea of how much insurance you might need, take a look at our cover calculator.

AIG hopes and encourages its policyholders to stay healthy at this time, claims related to Coronavirus would be reviewed and handled like any other life insurance claim.

This will depend on how you set up the policy. In the event of your death, the payment will normally go to:

  • Your spouse/partner if you have a joint policy with them.
  • Your estate, unless the policy is in a trust or is owned by someone else.
  • A trust, if that’s what you’ve specified. Trustees will distribute the money in accordance with your wishes.

In the event of a terminal illness or critical illness claim the money usually goes to the person covered.

Guides and articles

How Much Does A Funeral Cost?

Dying without a will

The cost of delaying life insurance

Page updated: 11th June, 2020