Term life insurance

Term Life Insurance

Financial protection for your loved ones; peace of mind for you - helping to ensure that those most dear to you can continue with the life you worked to provide for them.

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Saga Term Life Insurance is provided by Legal & General.

How does it work?

Saga Term Life Insurance provides cover should you die during the term of the policy.

Key Features

  • Leave a lump sum to help your family cope financially if you are no longer around to support them (Level term and Decreasing term life insurance options available).

  • Mortgage specific features included as standard to provide added protection when moving home. You can choose whether you want your cover amount to remain the same (Mortgage life insurance) or decrease over the full length of the policy (Decreasing term life insurance).

  • Re-assurance that cover is provided by Legal & General, the UK's number one term assurance provider*.

  • You have the option to pay premiums monthly or annually and you will receive a discount if you pay annually.
*Swiss Re Term & Health Watch Report 2015, based on new individual term assurance sales in 2014.

What are the benefits?

  • Premiums start from just £6 a month, the equivalent of around 20p a day (based on an average 30 day month).

  • Each policy is flexible and can adapt if your circumstances change.
  • You select the amount of cover and length of time you would like to be insured for. 

  • Your premiums are guaranteed to stay the same throughout the length of the policy (unless you alter your policy).

3 reasons to choose Saga Term Life Insurance

1. Cover for a variety of needs

Whether it’s to help make sure your family are financially protected in the event of your death (Family Term Life Insurance), to help pay off an interest only mortgage (Mortgage Level Term Life Insurance) or to help protect a repayment mortgage as the amount of cover reduces roughly in line with the way a repayment mortgage decreases (Mortgage Decreasing Term Life Insurance).

2. Accidental Death Benefit

Accidental Death Benefit covers you from application through to the acceptance decision (up to 90 days). So even if you or Legal & General decide not to go ahead with the plan, you will still have some cover during this period. 

3. Critical Illness Cover and Waiver of Premium

You have the option to add Critical Illness Cover and/or Waiver of Premium when you take out your policy for an additional cost. 

Critical Illness Cover is designed to pay out a cash sum if you are diagnosed with one of the specified critical illnesses.

Waiver of Premium is there to help pay your life insurance premiums if you are in gainful employment but are too ill to undertake your normal occupation due to incapacity caused by illness or injury.

How can it help?

Types of cover available

1. Family life insurance

With family life insurance the amount of cover always stays the same throughout the length of the policy, unless you choose to make changes to your policy. This can be used to leave your family a lump sum to help them cope financially if you die and are no longer around to support them.


2. Mortgage life insurance

With mortgage life insurance you can choose whether you want your amount of cover to remain the same (mortgage life insurance) or decrease over the full length of the policy (mortgage decreasing life insurance).

  • Mortgage life insurance is designed to help cover an interest only mortgage
  • Mortgage decreasing life insurance is designed to help cover a repayment mortgage  

One benefit of mortgage decreasing life insurance is that the premiums can be cheaper than with regular level life insurance because the amount of cover decreases throughout the policy term, roughly in line with the way a repayment mortgage reduces. With all policies your premiums will stay the same for the entire length of the policy, unless you alter your policy, so you can budget with confidence.


Please note that this is not an investment product and has no cash value except in the event of a valid claim.


Additional Benefits included automatically

When you purchase either Saga Family Life Insurance or Saga Mortgage Life Insurance, you will automatically receive:

Accidental Death Benefit

Free accidental death benefit while your application is processed, giving you some peace of mind that you’re covered in case of an accidental death. Terms and conditions apply. Please read the Key Features Document for more information.

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Terminal Illness Cover

If your policy term is over 2 years, it could pay out a lump sum if you're diagnosed with a terminal illness and have a life expectancy of 12 months or less. Please read the Key Features Document for more information.

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Additional Benefits of Mortgage Life Insurance

When you purchase Saga Mortgage Life Insurance, you will also automatically receive Free life cover.

Free life cover between exchange and completion

Free life cover between exchange of contracts and completion of your property purchase, if you are aged under 55 when taking out the policy. The amount covered will be your proposed sum insured, amount of your loan, or £300,000, whichever is the lowest.

In Scotland this cover is provided from when you complete missives for your property, until the date of entry.

Please see the Key Features Document for details of the above additional benefits.

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Optional Extras

(at an additional cost)

Waiver of Premium

If you're aged under 55 when you take out a policy, Waiver of Premium could help pay your life insurance premiums if you are in gainful employment but are too ill to undertake your normal occupation due to incapacity caused by illness or injury. If you choose this option, during the initial 26 weeks when you are not able to work the premiums are still to be paid by you and after this period your premiums will be paid for you.


Critical Illness Cover

The Critical Illness Cover is designed to pay out a cash lump sum if you are diagnosed with one of the specified conditions (see the critical illness specified conditions list below) during the period of cover and eligible to claim.

You can use the tax–free lump sum as you choose; from providing for your dependents, helping to pay off a mortgage, or to assist with medical costs. Please read the handy Guide to Critical Illness Cover for more information on the illnesses covered.


The above options can be added to applications for Saga Family Life Insurance and Saga Mortgage Life Insurance and cannot be purchased independently. Please refer to the Key Features Document for eligibility information.


Important Information about Critical Illness Cover

Saga Critical Illness Cover could pay out if you die or are diagnosed with one of the specified conditions during the period of cover and are eligible to claim. The illnesses covered by this plan are consistent with the current view of critical illness held by the medical profession and the Association of British Insurers, although advances in medicine and technology mean that traditional views of critical illness are constantly changing. See our What illnesses are covered section below for more information.

The headings for each critical illness are only a guide to what is covered. Further details of how your claim is considered, including full definitions that will be used and the evidence required, are provided in the policy documents you will receive. Some of the critical illnesses covered include heart attack, cancer and stroke. However, some types of cancer are not included and to make a claim for some illnesses, you need to have permanent symptoms.


All specified conditions covered by the plan must be verified by a medical specialist who is a consultant at a UK hospital, who is accepted by Legal & General’s Medical Officer, and whose specialism is appropriate to the cause of the claim.


This product is not suitable for everyone. If you have any doubt whether it is suitable for you, you should obtain expert advice.


Please see the Key Features Document for more details of the illnesses covered as well as the options available.


Critical Illness Cover - What illnesses are covered?

Saga Critical Illness Cover is designed to pay out a cash lump sum if you are diagnosed with one of the specified conditions during the period of cover and eligible to claim. This cover can only be added to applications for Saga Term Life Insurance, Saga Mortgage Life Insurance, and Saga Mortgage Decreasing Life Insurance .

Critical illness specified conditions

  •     Alzheimer’s Disease – resulting in permanent symptoms
  •    Aorta Graft Surgery – requiring surgical replacement
  •    Aplastic Anaemia – with permanent bone marrow failure
  •    Bacterial Meningitis – resulting in permanent symptoms
  •    Benign Brain Tumour – resulting in either surgical removal or permanent symptoms
  •    Blindness – permanent and irreversible
  •    Cancer – excluding less advanced cases
  •    Cardiac arrest - with insertion of a defibrillator
  •    Cardiomyopathy – of specified severity
  •    Coma – with associated permanent symptoms
  •    Coronary Artery Bypass Grafts – with surgery to divide the breastbone or anterolateral thoracotomy
  •    Creutzfeldt–Jakob Disease (CJD) – resulting in permanent symptoms
  •    Deafness – permanent and irreversible
  •    Dementia – resulting in permanent symptoms
  •    Encephalitis – resulting in permanent symptoms
  •    Heart Attack – of specified severity
  •    Heart Valve Replacement or Repair – with surgery
  •    HIV infection – caught from a blood transfusion, physical assault or accident at work
  •    Kidney failure – requiring permanent dialysis
  •    Liver failure – of advanced stage
  •    Loss of a hand or foot – permanent physical severance
  •    Loss of Speech – total permanent and irreversible
  •    Major Organ Transplant - from another donor
  •    Motor Neurone Disease – resulting in permanent symptoms
  •    Multiple Sclerosis – where there have been symptoms
  •    Multiple System Atrophy – resulting in permanent symptoms
  •    Open Heart Surgery – with median sternotomy
  •    Paralysis of a limb – total and irreversible
  •    Parkinson’s Disease – resulting in permanent symptoms
  •    Primary Pulmonary Hypertension – of specified severity
  •    Progressive Supranuclear Palsy – resulting in permanent symptoms
  •    Removal of an eyeball – due to injury or disease
  •    Respiratory failure – of advanced stage
  •    Spinal stroke - resulting in symptoms lasting at least 24 hours
  •    Stroke – resulting in symptoms lasting for at least 24 hours
  •    Systemic Lupus Erythematosus – with severe complications
  •    Third Degree Burns – covering 20% of surface area of the body or 20% of the face or head
  •    Total and Permanent Disability - of specified severity (see definition below)
  •    Traumatic brain injury – resulting in permanent symptoms


Terminal illness cover pays out the cash sum if you become terminally ill and you meet the definition.

Legal & General also pay out an additional lower amount separate to your main plan for the following conditions: Carcinoma in situ of the breast - treated by surgery, and Low grade prostrate cancer - requiring treatment.

For further details please see our Guide to Critical Illness Cover.

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Total and Permanent Disability

There are two definitions of total and permanent disability - Own Occupation and Specified Work Tasks.
If your total and permanent disability definition is own occupation, but you're not in paid employment at the time of a claim, your claim will be assessed under the Specified Work Tasks definition below.

Own Occupation and Specified Work Tasks definition

Own Occupation
Loss of the physical or mental ability through an illness or injury to the extent that you are unable to do the material and substantial duties of your own occupation ever again. The material and substantial duties are those that are normally required for, and/or form a significant and integral part of the performance of your own occupation that cannot reasonably be omitted or modified.


Own occupation means your trade, profession or type of work you do for profit or pay. It is not a specific job with any particular employer and is irrespective of location and availability.


The relevant specialist must reasonably expect that the disability will last throughout life with no prospect of improvement, irrespective of when the cover ends or you expect to retire.


For the above definition, disabilities for which relevant specialists cannot give a clear prognosis are not covered.

Specified Work Tasks
Loss of the physical ability through an illness or injury to do at least three of the six work tasks listed below, ever again.


The relevant specialists must reasonably expect that the disability will last throughout life with no prospect of improvement, irrespective of when the cover ends or you expect to retire. You must need the help or supervision of another person and be unable to perform the task on your own, even with the use of special equipment routinely available to help and having taken any appropriate prescribed medication.

The specified work tasks are:
• Walking - The ability to walk more than 200 metres on a level surface
• Climbing - the ability to climb up a flight of 12 stairs and down again, using the handrail if needed.
• Lifting - the ability to pick up an object weighing 2kg at table height and hold for 60 seconds before replacing the object on the table.
• Bending - the ability to bend or kneel to touch the floor and straighten up again
• Getting in and out of a car - the ability to get into a standard saloon car, and get out again.
• Writing - the manual dexterity to write legibly using a pen or pencil, or type using a desktop computer keyboard.
For the above definition, disabilities for which the relevant specialists cannot give a clear prognosis are not covered.

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Case study
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Planning your family's future

Fictional scenario

After visiting a friend who had recently lost her husband and seeing the impact this had on their friend’s family life style, Mr and Mrs Scales started thinking what would happen if the same were to happen to one of them.

Would they still be able to help their two daughters financially at university or if either decided to marry?

They hadn’t considered whether maintaining their lifestyle would be an issue and decided to take steps to make sure it wouldn't. After much research, they both took out Saga Family Term Life Insurance policies, allowing them to have cover in place for a fixed period of time until their daughters became financially independent.

Whilst applying for their policies, Mr and Mrs Scales also found out about the Saga Critical Illness Cover, which could pay out a lump sum if they became critically ill. By adding this cover, they would have the finances to adapt their home and would not have to move out if they became ill.

Case study
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Protecting your mortgage

Fictional scenario

Mr Finch (aged 57) is employed by a local company and, as he was getting older, started to worry about how he and his wife would pay the remaining five years’ worth of mortgage payments if he fell ill for a period of time. Or even worse, how his wife would pay the remaining amount alone if he died.

After calculating how much they still owed and the savings they had, it became apparent that there was a gap. Mr Finch took out a Saga Mortgage Decreasing Term Life Insurance policy to cover the remaining mortgage repayment period.

The policy was ideal as the amount of cover decreases roughly in line with the way a repayment mortgage reduces, meaning they were able to have the cover they actually required. The added benefit of being able to add Waiver of Premium meant Mr Finch could have peace of mind that the life insurance monthly premiums would be covered if he were too ill to work for a period of time.

Frequently asked questions

Life Insurance


What is life insurance and how does it work?

Saga Term Life Insurance, helps you protect your loved ones financially in the event of your death. You choose the amount of cover you need and the length of time you want to be insured for. If you die during the term of the policy, your policy could pay out the chosen amount of cover.

Saga Term Life Insurance policies automatically include Terminal Illness Cover at no extra cost (minimum 2 years), and this means your policy could pay out if you're diagnosed with a terminal illness and have less than 12 months to live. Terms and conditions apply. Please read the Key Features Document for more information.

 

How much life insurance do I need?

It depends on your individual circumstances. You may want to think about leaving a lump sum to your dependants, or to help clear an outstanding mortgage or debt on your death. Our cover calculator can be helpful when trying to work out how much cover you need. If you'd like more help you may wish to speak to your financial adviser.

How much will life insurance cost?

Saga Term Life Insurance premiums start from £6 per month, the equivalent of around 20p a day. Your individual premium will depend on the amount of cover you need and your individual needs and circumstances.

What different types of life insurance do you offer?

Level Term Insurance - designed to help make sure your family are financially protected in the event of your death.  A lump sum is paid out if you die during the policy term.

Mortgage Term Insurance - designed to help pay off an interest only mortgage. A lump sum is paid out if you die during the policy term.

Mortgage Decreasing Term Insurance  - designed to help protect a repayment mortgage as the amount of cover reduces roughly in line with the way a repayment mortgage decreases. A lump sum is paid out if you die during the policy term.

Your premiums are guaranteed to stay the same for all types of policies unless you alter your policy. Full details can be found in the Key Features Document. You can add Critical Illness Cover and Waiver of Premium when you take out a life insurance policy for an additional cost.

What is mortgage life insurance and how does it work?

Mortgage life insurance is designed to help pay off your outstanding mortgage amount in the event of your death during the policy term. You choose the amount of cover you need and the length of time you want to be insured for.

Saga Term Life Insurance policies automatically include Terminal Illness Cover at no extra cost (minimum 2 years), and this means your policy will pay out if you're diagnosed with a terminal illness and have less than 12 months to live. Terms and conditions apply. Please read the Key Features Document for more information.

What if I need to make a change to my policy?

The policies include different options that allow your cover to adapt with you, because you have the freedom to:

  • Change the length of your policy
  • Increase or decrease the amount of cover under your policy
  • Remove a life from a joint policy where cover is no longer required for that person
  • Change from monthly to annual premiums

There is also a 'Joint life separation' option. This allows a joint policy to be split into two new single policies if a couple divorce, dissolve their registered civil partnership or change a joint mortgage into one name.

Can I cancel my policy if I no longer need it?

After applying for cover you will receive a 30 day cancellation notice from Legal & General which you must send back if you decide not to continue with the policy. If you cancel within 30 days Legal & General will return any premiums paid.

If you cancel after 30 days you won't get anything back. Life insurance policies are not savings or investment products and have no cash value unless a valid claim is made. 

How long can I take a policy out for?

For Level Term Insurance with Critical Illness Cover you can choose a term between 2 and 40 years and the policy must end before your 70th birthday.

For Mortgage Decreasing Term Insurance with Critical Illness Cover the term must be between 5 and 40 years, and again it must end before your 70th birthday.

Will my premiums stay the same throughout the policy term?

Your premiums are guaranteed, so they won’t change for the length of the policy, unless you alter your policy.

Frequently asked questions

Critical Illness Cover


Can I add Critical Illness Cover?

Yes, you can apply to add Critical Illness Cover when you take out life insurance. If you're aged between 18 and 67 and a UK resident at the time of your application, then you're eligible. The policy must end before your 70th birthday. Adding this important benefit means that your policy could pay out on your death or on diagnosis of one of the specified conditions during the policy term. It also pays out if you are terminally ill and you meet Legal & General’s definition.

What critical illnesses are covered under this policy?

Saga Critical Illness Cover, provided by Legal & General, is designed to help cover critical illnesses which could have a severe impact on your lifestyle. The policy covers more conditions than the most recent guidelines published by the Association of British Insurers (ABI).

If I need to make a critical illness claim, what should I do?

You can call Legal & General’s claims team on 0800 068 0789, Monday to Friday between 9am and 5.30pm. Ideally you need to have your policy number to hand, as well as details of the illness, including the diagnosis.

Each claim is treated individually and your claims handler will explain everything to you in detail if you ever come to make a claim.

What happens to my policy if I claim for carcinoma in situ of the breast or low grade prostate cancer?

If you have a carcinoma in situ of the breast or low grade prostate cancer, and are eligible to claim, Legal & General will pay out 25% of your amount of cover up to a maximum of £25,000. If decreasing cover is chosen we'll pay 25% of the decreasing amount up to a maximum of £25,000. This benefit is in addition to your main amount of cover so your cover will not end after this benefit is paid. Your cover and monthly premium will remain the same.

Will my premiums stay the same throughout the policy term?

Your premiums are guaranteed, so they won’t change for the length of the policy, unless you alter your policy.

As my policy includes Life Insurance and Critical Illness Cover, does that mean it could pay out twice?

No, the policy pays out either on death, terminal illness or diagnosis of a critical illness. The policy ends once a valid claim has been made and the cash sum has been paid out.

However, if your claim is for carcinoma in situ of the breast or low grade prostate cancer, the policy will continue as normal after a pay out for one of these types of claim.

Helping you decide

A Saga Term Life Insurance policy may be suitable for you if:

  • You’re aged 50 or over
  • You want a fixed monthly cost
  • You want a plan which can adapt with your needs
  • You want protection to help pay off a mortgage
  • You want some peace of mind for your family
  • You require cover for a fixed period of time.

What else may be relevant?


Fixed premium levels

Your premiums are guaranteed to stay the same throughout the length of your policy (unless you alter your policy).


£40 M&S Gift Card welcome gift
As a thank you for taking out a Saga Term Life Insurance policy, we will send you a £40 Marks & Spencer Gift Card four months after your policy start date (Terms and conditions apply).

Important information

Premiums

  1. The main factors are your age, occupation, smoker status, health, the level of cover you need and type of contract that you choose. Normally, the older you are, the higher the premium. Your individual height, weight, medical history and lifestyle are all assessed.
  2. There are no hidden extras – premium payments include all expenses. Premiums are guaranteed – you pay the same throughout the term of the plan, unless you alter your policy.
  3. With these life insurance policies, you have the option to pay your premiums monthly or annually. If you decide to pay annually you will receive a discount.

To find out more information regarding Saga Term Life Insurance and associated optional extras. Please find links to all the key documents below:

Key Features Document

Guide to Critical Illness Cover


Cover for pre-existing medical conditions

Legal & General may need to charge a higher premium based on the information provided in your application. Some pre-existing medical conditions may not be covered. However, you can choose to reduce your cover and pay a lower premium.

Who is the provider and how are they regulated?

Saga Term Life Insurance is provided by Legal & General Assurance Society Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales (registered no.00166055).

Saga Personal Finance is a registered trading name of Acromas Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority. Acromas Financial Services Limited is registered in England and Wales (Company No. 3023493). Registered office: Enbrook Park, Sandgate, Kent CT20 3SE.

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