Protect their future with first direct Life Insurance
We know it's not the cheeriest thing to think about. But it's important and if anything happens to you, you'll want to know your family are taken care of. We insure our cars, homes, pets and even mobile phones as a matter of course, so it's worth thinking about insuring yourself too.
first direct Life Insurance is provided by HSBC Life (UK) Limited.
online application with only three medical questions
cover up to £2 million
lump sum pay-out after death or terminal illness diagnosis
choose either level or decreasing cover
you must be a named first direct1st Account holder or, hold or be in the process of arranging a first directmortgage to take out a policy.
Important things you should know
We won't pay a claim if you die as a result of intentionally taking your own life within the first 12 months of your policy
The policy has no cash-in value and you don't get anything back when it ends
If you stop paying your premiums, your cover will end
After your policy has been issued, you can decrease the amount of cover but you can't increase it.
level cover pays out a fixed amount no matter when you die during the term. For example, if you take out £250,000 worth of level cover, your loved ones will receive £250,000 whether you pass away in year one or year nineteen
decreasing cover is usually taken to make sure your mortgage can be paid off if you die during a set period. As the amount you owe on your mortgage decreases over the years, the amount a decreasing cover policy pays out also goes down. Because of this, decreasing cover normally costs less each month.
The right type of cover for you depends on the level of financial commitments you have and the kind of lifestyle you'd like to provide for your family when you're gone - it's up to you.
How much cover can I get?
no minimum (subject to a minimum premium)
maximum £2 million
accidental death benefit cover up to £250,000.
How long will my policy last?
Our policies last between 5 and 62 years, but must end before you're 80. Lots of people base their cover on how long is left on their mortgage or when they expect their children to be financially independent. Once the term is completed, the cover stops.
What age can I apply?
You must be between 17 and 69 to take out a policy.
What are the benefits of putting my policy into trust?
Reduces the amount of Inheritance Tax your estate has to pay as any Life Insurance pay-out held in trust is paid directly to your trustees and won't be part of your estate.
Quicker pay-out as the money will be passed directly to the trustees not your estate - they'll only need to send us a death certificate rather than go through lengthy legal processes e.g. getting a Grant of Probate.
You can make your trustees aware of to whom you would like the policy proceeds paid. If you need more information about putting your policy in trust see our Flexible Trust Guide opens a new window.
Are there any disadvantages of putting my policy into trust?
Yes the potential disadvantage of putting a policy in trust is that once a policy is in trust it has to stay in trust, so the decision cannot be reversed, however you can change who you want the benefits paid to.
How do I work out the amount of life insurance I should have?
As with many things, you'll probably need to balance the level of protection you want with what you can afford each month. Here are some things to think about:
how much is left on your mortgage, and whether your family would be able to afford repayments without you
any other debts that would need repaying
whether your family's day-to-day finances or costs would change (for example, the loss of the main breadwinner, or the need to hire childcare)
helping your children with the costs of their education, buying their first home etc.
The cover we provide is 'non-advised', which means that we can't tell you what's best for you but we can give you all the information you need to help you decide.
What's not covered?
As with all insurance policies, terms and conditions, exclusions and limitations will apply. Please see the Policy Booklet opens a new window for full details.
The policy won't pay out in full and some, or all, benefits under the policy may be cancelled if:
you don't disclose relevant information we ask for when you take out the policy - it's your responsibility to complete the application properly
you don't tell us about any changes to your health, family history and lifestyle (including smoking habits) that happen between you completing the application and when the policy starts
suicide within the first 12 months of the policy is not covered.
Sorry - we don't provide joint life polices just single ones. If you are taking out a joint mortgage and you feel you require a joint life policy, please contact a financial adviser or moneyadviceservice.org.uk opens an overlay.
What if I'm arranging a mortgage with you?
Your mortgage adviser will offer you a quote and take you through an application. Our life insurance product is provided on a non-advised basis and we will only quote on the basis of the type of mortgage requested, for the amount and term of your mortgage. For a repayment mortgage, we will quote on a Decreasing Term basis, where the amount of cover decreases in line with your mortgage. For an Offset mortgage, we will quote on a Level Term basis, where the cover remains the same for the term of your mortgage.
For more information about mortgages with first direct, click Mortgages.
Get a quote in less than a minute
Not covered yet?
Anyone can get a quote, but to apply, you must be a named first direct1st Account holder or, hold or be in the process of arranging a first directmortgage to take out a policy.
Dealing with the financial affairs of a loved one when you're grieving is never easy, but we hope our information and the help of our Bereavement Support Team will make things a little easier.
