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It's your life. Compare now and get the right insurance cover

The type of life insurance you need will depend on a few things. Like what you need the cover for, how much you'll need and over what period.

This will help you decide whether you need a type of cover that stays the same, decreases or increases over time. It’s important to understand how different cover works, so you get the right type in place for your needs.

Graph illustration breaking down the cover of life insurance over time versus the value of the policy

Compare the difference

One easy way to understand the difference in what these types of cover would pay out over time is to see it. So here's an example showing how a pay-out amount worth £100,000 today would change.

Types of life insurance

Post Office offers three types of life insurance. Discover the right cover for you:

  • Level Cover option
  • Decreasing Cover option
  • Increasing Cover option

Level Cover option

What is it for?

Providing for your loved ones and/or paying off an interest-only mortgage if you die

Why might you need it?

If you want a life insurance policy that pays out a fixed amount if you die, choose our Level Cover option. As long as you have your policy in place it will pay a fixed sum that could help your loved ones pay off an interest-only mortgage, clear other debts and maintain their lifestyle

How does it work?

  • You pay a fixed premium each month
  • If you die during the life of your policy your loved ones could receive a cash sum pay-out
  • Both your lump sum and monthly payment will remain fixed during the term of your policy
  • You can choose to add optional Critical Illness Cover at additional cost
  • Option to add Children's Cover to your policy, at additional cost

The amount you pay tends to be more than for Decreasing Cover because the pay-out doesn’t reduce. Make sure you consider the effect of inflation when making your calculations

Decreasing Cover option

What is it for?

Typically used to pay off a repayment mortgage if you die

Why might you need it?

Get the cover you need now and protect your loved ones from debts that reduce over time, such as a repayment mortgage, credit cards and loans. Decreasing cover's often called mortgage life insurance for that reason

How does it work?

  • You pay the same fixed premium amount each month (but lower than for Level Cover)
  • The payout amount decreases each month in line with a capital and interest repayment mortgage with a fixed interest rate of 8%
  • Your loved ones could get a cash sum if you die during the term of the policy's life
  • You can choose to add optional Critical Illness Cover at an additional cost
  • Option to add Children's Cover to your policy, for an additional cost

The policy value decreases over time broadly in line with the reducing amount owed on a capital and interest repayment mortgage, although that does depend on your mortgage interest rate so you do need to check that you would be covered.

If your mortgage rate is higher than 8% or if your borrowing changes this amount may not be enough.

The Decreasing Cover option also comes with the Mortgage Guarantee which means that if at the time of making a successful claim, the benefit amount is less than the amount of the life insured’s outstanding mortgage, Scottish Friendly will pay the amount outstanding on the mortgage. Please refer to the Terms and Conditions for further information

Increasing Cover option

What is it for?

Providing for your loved ones and reducing the impact of inflation on the money you leave if you die

Why might you need it?

As time goes by inflation can make the cost of living go up. Increasing Cover is a way to reduce the impact of inflation on the money you leave behind for your loved ones. The cash sum paid out if you die increases each year you have the policy in place

How does it work?

  • Your sum insured will increase automatically each year in line with the Retail Price Index (RPI) up to a maximum annual increase of 10%
  • As a result, your monthly payments will increase annually, but stay fixed for each 12 month period
  • If you die during the policy term, the later this happens, the higher the payout will be
  • You can choose to add optional Critical Illness Cover at an additional cost
  • Option to add Children's Cover to your policy, for an additional cost

You can reject each annual increase before it takes effect, in which case neither the cash sum nor the monthly premium will increase at the next policy anniversary. But if you do this for three consecutive years, we'll change your policy to a Level Cover option and there will be no further automatic increases applied to your cash sum and your monthly premium will remain fixed

Compare Post Office Life Insurance types

We've compared our three Life Insurance cover types side by side so you can easily see which suits you. We've included Post Office Over 50s Life Cover too, in case it's of interest

Key cover features

Level Cover

What's it for?

Providing for your loved ones and/or paying off an interest-only mortgage if you die

Fixed cash sum

Yes

What's the maximum 
pay-out?

Up to £750,000 (depending on your age)

Age limits

Ages 18-70

Is Terminal Illness Cover included?

Yes

Are health-related question asked?

Yes

Can I add Critical Illness Cover to my policy?

Yes

Can I add Children's Cover to my policy?

Yes

Can I apply for joint cover?

Yes

More information

Decreasing Cover

What's it for?

Typically used to pay off a repayment mortgage if you die

Fixed cash sum

No, the pay-out amount reduces over time

What's the maximum 
pay-out?

Up to £750,000 (depending on your age)

Age limits

Ages 18-70

Is Terminal Illness Cover included?

Yes

Are health-related question asked?

Yes

Can I add Critical Illness Cover to my policy?

Yes

Can I add Children's Cover to my policy?

Yes

Can I apply for joint cover?

Yes

More information

Increasing Cover

What's it for?

Providing for your loved ones and reducing the impact of inflation on the money you leave if you die

Fixed cash sum

No, the pay-out amount grows each year

What's the maximum 
pay-out?

Up to £750,000 (depending on your age)

Age limits

Ages 18-70

Is Terminal Illness Cover included?

Yes

Are health-related question asked?

Yes

Can I add Critical Illness Cover to my policy?

Yes

Can I add Children's Cover to my policy?

Yes

Can I apply for joint cover?

Yes

More information

Over 50s Life Cover

What's it for?

Leaving a cash sum to help pay for your funeral, settle loans or as a gift

Fixed cash sum

Yes, or can also opt for increasing cover option

What's the maximum 
pay-out?

Up to £10,000 (depending on your age)

Age limits

Ages 50-80

Is Terminal Illness Cover included?

No

Are health-related question asked?

No

Can I add Critical Illness Cover to my policy?

No

Can I add Children's Cover to my policy?

No

Can I apply for joint cover?

Yes (excluding in-branch)

More information

What's it for?

What's it for?

Providing for your loved ones and/or paying off an interest-only mortgage if you die

What's it for?

Typically used to pay off a repayment mortgage if you die

What's it for?

Providing for your loved ones and reducing the impact of inflation on the money you leave if you die

What's it for?

Leaving a cash sum to help pay for your funeral, settle loans or as a gift

Fixed cash sum

Fixed cash sum

Yes

Fixed cash sum

No, the pay-out amount reduces over time

Fixed cash sum

No, the pay-out amount grows each year

Fixed cash sum

Yes, or can also opt for increasing cover option

What's the maximum 
pay-out?

What's the maximum 
pay-out?

Up to £750,000 (depending on your age)

What's the maximum 
pay-out?

Up to £750,000 (depending on your age)

What's the maximum 
pay-out?

Up to £750,000 (depending on your age)

What's the maximum 
pay-out?

Up to £10,000 (depending on your age)

Age limits

Age limits

Ages 18-70

Age limits

Ages 18-70

Age limits

Ages 18-70

Age limits

Ages 50-80

Is Terminal Illness Cover included?

Is Terminal Illness Cover included?

Yes

Is Terminal Illness Cover included?

Yes

Is Terminal Illness Cover included?

Yes

Is Terminal Illness Cover included?

No

Are health-related question asked?

Are health-related question asked?

Yes

Are health-related question asked?

Yes

Are health-related question asked?

Yes

Are health-related question asked?

No

Can I add Critical Illness Cover to my policy?

Can I add Critical Illness Cover to my policy?

Yes

Can I add Critical Illness Cover to my policy?

Yes

Can I add Critical Illness Cover to my policy?

Yes

Can I add Critical Illness Cover to my policy?

No

Can I add Children's Cover to my policy?

Can I add Children's Cover to my policy?

Yes

Can I add Children's Cover to my policy?

Yes

Can I add Children's Cover to my policy?

Yes

Can I add Children's Cover to my policy?

No

Can I apply for joint cover?

Can I apply for joint cover?

Yes

Can I apply for joint cover?

Yes

Can I apply for joint cover?

Yes

Can I apply for joint cover?

Yes (excluding in-branch)

More information

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Get a quote online

It’s quick and easy to get a quote for Post Office Life Insurance online.

Get a quote by phone

Monday to Friday: 9am - 8pm

Saturday: 9am - 5pm

Closed on Sundays and bank holidays

Need some help?

Life Cover help and support

To make a claim, find answers to common questions, access bereavement and wellbeing support or contact us for something else:

Visit our Life Cover support page 

Things you need to know

*0330 & 0345: Calls to 03 numbers will cost no more than calling a standard UK number starting with 01 or 02 from your fixed line or mobile and may be included in your call package. Calls may be monitored or recorded for training and compliance purposes.

Post office Life Insurance is underwritten and administered by Scottish Friendly Assurance Society Limited. Neilson Financial Services Limited assist in the administration.

Premiums depend on your age, smoker status, length and type of cover and your personal circumstances at the time you apply.

Post Office Life Insurance offers up to £750,000 cover, depending on your age, for customers who are UK residents aged 18-70 at the start of the policy. The minimum term is 5 years and cover must end before your 90th birthday.

We won't pay a claim on death if it was as a result of suicide or intentional self-inflicted injury within 12 months of the start date of your policy. We won't pay a claim on terminal illness if you don't meet our definitions of terminal illness; or terminal illness is caused by intentional self-inflicted injury within 12 months of the start date of your policy. We won’t pay a claim if you don’t keep your payments up to date as you will no longer be covered under the policy. Or if you don’t tell us something or give us incorrect answers to our application questions which affects your cover. If you’re a UK resident aged between 18 and 70, you can apply.

Post Office Limited is an appointed representative of Post Office Management Services Limited which is authorised and regulated by the Financial Conduct Authority, FRN 630318. Registered in England and Wales. Registered numbers 2154540 and 08459718 respectively. Registered office: 100 Wood Street, London, EC2V 7ER.