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 These services do not form part of your insurance contract and could be changed or withdrawn in the future.
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.
99% of life insurance claims paid out
Based on AIG data, 99% of life insurance claims were paid out in 2020.
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?
You have three choices to make before you take out a life insurance policy.
Would our Over 50s Life Insurance suit you better?
How our Over 50s Insurance is different from our Life Insurance
With Over 50s Life Insurance, you'll be covered 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.
Or, with Life Insurance, if you die during the term of the policy, the beneficiary will receive a lump sum to help pay off things such as mortgage, debts, bills and expenses. You'll be asked to answer some lifestyle and health questions in your application.
Do you need Level or Decreasing term 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
Also known as decreasing insurance, this is usually a cheaper option, and it’s ideal if you want to take care of 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.
Do you need a single or joint life insurance policy?
A single policy is for one person, and you pay a set amount each month. This amount is fixed throughout the policy, so it doesn't increase with your age. If you die during the length of the policy, it usually pays out a tax-free lump sum.
A joint policy can be taken out by a couple – this means you're both covered with life insurance under the same terms. There will be one payment to make each month, which can often be cheaper than taking out two individual policies. Once a payout has been made for one partner, the policy will come to an end.
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.
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 U K Insurance Business Solutions Limited.
AIG policies taken out after 22 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.
A life insurance policy that lasts for a fixed amount of time is called a term policy. How long you want your insurance to last for will depend on what you want to cover. If you have a mortgage, you may want to make sure the policy lasts as long as your repayments.
If you have children, you might want the payment from the policy to provide financial support for them until they've finished school, turned 18, finished university or can support themselves financially.
Your own age will probably have an impact on your decision too.
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.
Writing a will is the best way of making sure your assets end up with who you want. Have you made one?
Life insurance costs are calculated on risk. As a younger, healthier customer, you would pay less. As you get older, insurance premiums become more expensive. What's more, prices are fixed for the term of your policy unless you change it.