If you are considering buying life insurance, our independent review takes a close look at Zurich’s life insurance policy, including the types of cover available, how much premiums typically cost, and the additional benefits provided.
Who is Zurich?
Zurich was established in 1872 and opened offices across Europe. It later changed its name to Zurich Transport and Accident Insurance Limited, and then to Zurich General Accident and Liability Insurance Limited in 1894.
In 1912, Zurich gained licences to start business in the US and 10 years later it entered the UK general insurance market. An agreement with Ford Motor Company’s UK branch was made in 1925, providing insurance at a flat rate for all Ford cars sold in the UK.
A further name change was made in 1955 to Zurich Insurance Company, and in 1961 Zurich acquired the Commonwealth General Assurance Corporation in Australia. Four years later it entered the South American market with a further acquisition. An office was opened in Hong Kong in 1979 and in China in 1993. The company became Zurich Financial Services in 1998 after combining with the financial arm of BAT Industries.
In 2018, the Finance & Technology Research Centre awarded Zurich a gold medal for its Life Protection and Critical Illness Select products, silver for its mortgage protection products, and a bronze medal for its Critical Illness cover.
Below is an overview of the types of cover you can choose from with Zurich life insurance, as well as additional benefits and the company’s claims history.
- Policy types: Choose from level term, decreasing term, increasing term and whole of life cover. Choose from joint and single policies. Terminal Illness Cover is automatically included and you can combine life insurance with Critical Illness cover.
- Claims record: 2019 - Life insurance 99%, critical illness 90%. 2018 - Life insurance 99%, critical illness 91%. 2017 - Life insurance 99%, critical illness 95%.
- Additional benefits: Free life cover is included during underwriting and between exchange and completion on a property purchase. Policyholders also have access to counselling and support services.
- Up to £100 cashback: If you apply for a policy with LifeSearch* (simply click on the link and complete the short form), you will receive up to £100 cashback. You can find out more below.
Zurich Policy Summary
The table below shows the key facts and features for Zurich’s life insurance policy:
|Type of cover||Life Insurance|
|Options||Level, decreasing and increasing term cover or whole of life cover.|
|Policy Coverage||Single or joint life first event (pays out on the first death).|
|Terminal Illness Cover included?||Terminal Illness Cover is included and will pay out if the policyholder is diagnosed with an illness that is likely to cause death within 12 months.|
|Can cover increase over time (indexation)?||If you choose increasing cover, the sum assured will increase each year by either 3% or 5%, or in line with the Retail Price Index.|
|Waiver of Premium||Waiver of Premium can be added to your policy for an additional cost. This means you won’t have to pay your premiums if you are unable to work for more than six months.|
|Minimum age at entry||16|
|Maximum age at entry||83|
|Policy Exclusions||Suicide in the first 12 months is not covered. Terminal Illness Cover will not pay out if the illness does not meet the policy definition or is not expected to cause death within 12 months.|
The table below shows the key facts and features for Zurich’s critical illness policy:
|Type of cover||Critical Illness|
|Can it be combined with life cover?||Yes - must be combined.|
|Number of critical illnesses covered||42|
|Children’s critical illness cover included||Not included - but can be added for an additional cost. The cover will pay the lower of £25,000 or 50% of the lump sum.|
|Minimum age at entry||16|
|Maximum age at entry||69|
|Policy exclusions||No payout will be received if you are diagnosed with an illness that is not covered by the policy or does not meet the policy definition.|
Additional free benefits provided by Zurich
- Life insurance includes Terminal Illness Cover that pays out if you are diagnosed with an illness that is likely to cause death within 12 months.
- Access to Zurich Support Service which offers short-term counselling and professional consultation.
- Free life cover of up to £250,000 and critical illness cover of up to £150,000 during underwriting.
- Free life cover of up to £500,000 and critical illness cover of up to £350,000 between exchange and completion on a property purchase.
- If you have a joint life insurance policy but separate or divorce, separation benefit allows you to cancel the policy and start individual policies without providing medical information.
- Milestone benefit is usually included which allows you to increase the amount of cover on your policy within 90 days of a significant life event - such as moving house or getting married - without answering any health questions. Note that premiums will change.
- Critical illness cover can pay out as soon as you are put on an NHS waiting list for one of seven major operations.
Optional benefits provided by Zurich
- Multi-fracture cover can be added for a fixed cost per month. This will pay a lump sum of up to £6,000 if you break a bone or dislocate a joint.
- Waiver of premium is available for an additional cost and means you won’t have to pay your premiums if you are unable to work for more than six months.
- Option to add children’s critical illness cover when you take out a critical illness policy. This covers children up to the age of 22 and will pay out the lower of £25,000 or 50% of the lump sum if they are diagnosed with a critical illness during the term of the policy. If your child dies, £5,000 will be paid out. Children will also be able to start a new life and critical illness policy between their 16th and 22nd birthday without needing to provide personal details.
- Total disability cover can be added which will pay out if you can no longer do your current job.
- Option to convert an increasing or level term policy to a whole of life policy without answering any questions about your personal circumstances.
How much does Zurich insurance cost?
The tables below give you an idea of how much £250,000 of level term life insurance could cost you each month with Zurich over a 20-year term. Figures have been broken down for both a non-smoker and a smoker in different age groups and monthly premiums have been compared to the cheapest and most expensive premiums in the market.
Zurich life insurance comparison - £250,000 over 20 years (Non-Smoker)
|Zurich premium||Cheapest premium||Most expensive premium|
Zurich life insurance comparison - £250,000 over 20 years (Smoker)
|Zurich premium||Cheapest premium||Most expensive premium|
Keep in mind that the above figures should only be used as a guideline. The amount you, as an individual, pay for life insurance premiums will depend on a number of factors such as your age, health, whether you smoke, your occupation, how much cover you choose, and how long you want the cover to last.
To get a clearer idea of how much you could pay each month, it can be worth speaking to an independent insurance specialist who can help you choose the right policy. Below we explain how you can also qualify for up to £100 cashback if you take out a life insurance policy.
Best way to buy Zurich life insurance?
Before buying life insurance, it’s a good idea to speak with an independent life insurance specialist such as LifeSearch, as they will be able to access quotes from all major insurance companies and ensure you are choosing the right policy.
Independent specialists can advise on a range of topics, including:
- which type of life insurance and/or critical illness cover is best for you
- how much cover you need
- how to complete your application forms
- how to put your policy into trust
- how to make a claim in the future
If you’d like to get a quote, simply fill in this short form*. There is no obligation to take out a policy but if you do, you will qualify for up to £100 cashback.
Zurich life insurance summary
- Established in 1872.
- In 2019, Zurich paid out 99% of life insurance claims and 90% of critical illness claims.
- Life insurance automatically includes Terminal Illness Cover and can also be combined with Critical Illness cover.
- Children’s critical illness cover can be added for an extra cost if you take out your own policy.
- Free life cover is included during underwriting and between exchange and completion on a property purchase.
- Policyholders have access to Zurich Support Service which offers short-term counselling and other support services.
- Separation benefit is also included, allowing you to cancel a joint life insurance policy if you separate or divorce, and start individual policies.
- Zurich’s life insurance premiums won’t necessarily be the cheapest for you. The amount you pay will depend on a number of factors so it is best to shop around and compare deals carefully to ensure you get the right policy at the right price.
- If you buy a life insurance policy through LifeSearch*, you will receive up to £100 cashback. Simply click on the link and complete the form to be called back at a time to suit you.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses and do not wish to qualify for the cashback referred to in the article - LifeSearch
Looking for a financial adviser near you?
Do you need financial advice? An independent financial adviser can show you how to make the most
of your money. Find your nearest qualified and regulated adviser using this VouchedFor search tool.
Alternatively, Hargreaves Lansdown, one of the UK’s largest firms providing restricted financial advice, is offering a £200 John Lewis voucher* to new clients.