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Virgin Money Life Insurance Review 2024

Life insurance can make a world of difference in supporting your family financially after you’re gone. There are a lot of options on the market for UK life insurance which can make things confusing, and Virgin Money may not be a name that immediately comes to mind.

Our experts have written this simple Virgin Money life insurance review to explain a bit more about how their policies work and help you figure out if they feel like a good fit for your life cover.

We’re constantly assessing which providers offer the best prices and policies in the UK and Virgin Money often appear as a low-cost option with simple policies and some appealing extra benefits like free terminal illness cover and help with legal advice.

They won’t be the right choice for everyone though, which is why it’s important to consider if Virgin Money can offer the right level of protection for the cover that you need. If you’re not sure about Virgin Money, a discount life insurance expert can help you to assess which life insurance providers will work best for your situation and how much you want to spend.

A picture of a stopwatch

60-Second Summary – Virgin Money life insurance

Virgin Money life insurance is a cost-effective policy option that can work well for customers who want to spend less and have the same peace of mind that their family and home are protected. They may not be the right choice for every customer though, which is why it is key to do your research and get some extra advice if you’re if they are the right choice for you.

  • Virgin Money specialises in term life insurance policies (policies that cover you for a set number of years). You can buy either level term life insurance (family protection) or decreasing life insurance (mortgage protection).
  • You also have the option of adding on critical illness cover for added financial protection. These policies pay out a cash lump sum if you are diagnosed with one of 21 specified serious medical conditions.
  • Virgin Money is one of the lowest priced options for life cover in the UK and they still add on attractive extra benefits like terminal illness cover and FREE legal advice services and support.
  • Virgin Money policies may not be the best choice for people who have high risk jobs/hobbies or medical conditions. If this applies to you, it’s worth speaking to a life insurance expert who can explain which providers will be best and most affordable for you.

Virgin Money is a financial services company which operates in the UK and Australia to provide banking and insurance services. This a part of the larger Virgin Group which was founded in February 1970 by Richard Branson. This group owns various brands including Virgin Money, Virgin Atlantic, Virgin Rail Group and Virgin Media.

The Virgin Money UK side of the business was established in March 1995 in partnership with Norwich Union (now known as Aviva). The business began under the name Virgin Direct before rebranding to Virgin Money in 2000. Virgin Money provides various financial services including:

  • Mortgages
  • Credit cards
  • Current accounts
  • Insurance
  • Pensions

Who has taken over Virgin Money?

Virgin Money was officially bought by CYBG plc and merged with Clydesdale Bank in 2018. This change didn’t affect how Virgin Money operates or mean significant changes for any of their customers.

The business still operates under the Virgin Money name but using Clydesdale Bank’s banking licence.

Which bank does Virgin Money use?

There are 3 banks that are now part of the Virgin Money group which are the Virgin Money, Clydesdale Bank and Yorkshire Bank.

It is believed that over time Virgin Money will become the main brand within this group, phasing out both Clydesdale Bank and Yorkshire Bank.

Virgin Money sells life insurance policies to help support your family financially in the event of your death. These policies are referred to as Virgin Money Family & Lifestyle Life Insurance to highlight what these policies are designed to protect.

Virgin Money only sells term life insurance, with two policy options available:

  • Level term life insurance: These policies are designed as financial protection for your family. They pay out a set cash lump sum to your loved ones in the event of your death to help with expenses like funeral costs.
  • Decreasing term life insurance: These policies are known as Virgin Money Mortgage Life Insurance and your cover amount will decrease over time as you repay your mortgage

You have the choice of buying either single or joint life insurance depending on what you would prefer. Virgin Money joint life insurance policies are what is referred to as Joint Life First Death policies. This means that they pay out on the death of the first partner and the cover will then end, so the remaining partner would need to get a new policy.

If you’re not sure which type of policy will be right for you, it can be helpful to compare quotes from a few providers to see what features are available and what works best for your own situation.

Who is the provider of Virgin Money life insurance?

Over the years, Virgin Money has partnered with various companies to provide life insurance including popular insurers Aviva and Scottish Widows.

Until August 2023, Virgin Money Family & Lifestyle life insurance was provided in partnership with and was underwritten by Scottish Friendly Assurance Society. Scottish Friendly are a mutual society and they have over 150 years experience with UK investments and insurance policies.

As well as Virgin Money, they have also underwritten and provided policies for insurers like:

Virgin Money Family & Lifestyle life insurance is now provided and underwritten by Family Assurance Friendly Society Limited (better known as One Family). One Family operate primarily as an over 50s life insurance provider, who also deal with investments and pensions.

Virgin Money’s mortgage life insurance policies are provided by Legal & General, who are one of the UK’s largest general insurance companies.

It is common for companies like Virgin Money to partner with other insurance businesses or underwriters to provide their life insurance policies. This isn’t something to worry about and is usually done to help improve the quality of policies available and the claims process.

Note: Though One Family specialises in over 50s cover, over 50s life insurance is not available through Virgin Money. This is because this is a form of whole life insurance and Virgin Money only sells term life insurance policies.

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Virgin Money might not be the UK’s biggest insurance provider, but they do provide good quality policies and at a price that would work for most budgets.

They are a defaqto 5 star rated provider who are consistently among the lowest priced life insurance providers when searching for life insurance quotes. On top of this, they also provide some appealing extra features and benefits for their customers such as:

  • FREE terminal illness benefit is automatically included with all policies
  • Access to 1 hour of FREE legal advice through Minister Law
  • Ability to add on critical illness cover for a higher level of protection – and you can add your children on too
  • Extra services such as notifying your loved ones of policy details via email, so they know all the important details if they ever need to claim
  • Affordable and simple options for life insurance cover to protect your home and family

Virgin Money won’t be the perfect choice for every customer, but they are certainly worth considering if you’re looking for a low-cost, high-quality life insurance policy.

How your Virgin Money life insurance policy works will depend on which type of Virgin Money life insurance you choose. Though the process of applying and owning your policy will be similar, there are different features for each type of cover.

Virgin Money Family & Lifestyle life insurance have various features and benefits that can work well for life insurance customers:

  • Option for level term or decreasing cover based on what works best for you
  • Choice of single or joint policies so you can pick what works best for you
  • Increased financial support to give you peace of mind that your family will be looked after in the event of your death

Virgin Money Your Life Insurance Terms & Conditions – CLICK HERE

Virgin Money mortgage life insurance policies are actually Legal & General policies and have these main policy features:

  • Choice of a decreasing or fixed pay out, so you can choose the one that works best for the mortgage you have. A fixed pay out can be a good option if you have an interest only mortgage, so your pay out should always cover your full mortgage balance
  • Option to add critical illness cover for an extra cost (covers 38 illnesses) with free cover for children (this can’t be added later with mortgage life insurance and needs to be bought during the original application)
  • Cover from as little as £6 per month to suit people with a lower budget (prices will vary based on individual circumstances)
  • Flexible and easy to update policies

Legal & General Life Insurance with Optional Critical Illness Cover Policy Summary – CLICK HERE

Virgin Money will direct you to Legal & General from their website and you buy your cover through Legal & General directly. You can then receive some of Legal & General’s most popular customer benefits including:

  • 24/7 virtual GP services
  • Accidental death cover while your application is being processed (for 90 days)
  • FREE terminal illness cover
  • Guaranteed insurability option so you can increase your cover easily after important life events (e.g. marriage, birth of a child or adoption)
Policy typeVirgin Money life insurance
What are the premium options with Virgin Money life insurance?Guaranteed (fixed) premiums – the amount you pay will not change during your policy term
What type of life insurance policies are available?Virgin Money Family & Lifestyle life insurance (level term and decreasing options) Virgin Money Mortgage Life Insurance (in partnership with Legal & General)
Can I get a joint life insurance policy?YES – Virgin Money sells joint life insurance policies which pay out on the death of the first partner (Joint Life First Death)
Is terminal illness benefit included with my policy?YES – Terminal illness benefit is automatically included and will pay out if you are diagnosed as having 12 months or less left to live
Can I have waiver of premium benefit?Waiver of premium benefit is not available with Virgin Money Family & Lifestyle Life Insurance but may be available with Virgin Money Mortgage Life Insurance (Legal & General policy)
Is increasing cover available?NO – Increasing cover is not currently available through Virgin Money
Are there age limits for cover?Minimum age 18 at start of policy Maximum age 64 at start of policy   You can have a minimum policy term of 5 years and a maximum policy term of 40 years, but your cover must end before your 80th birthday
Are there exclusions with Virgin Money life insurance?YES – Your life insurance policy will not pay out within the first 12 months if your death was a result of suicide or self inflicted injury

Virgin Money Life Insurance Policy Summary – CLICK HERE

What isn’t covered by Virgin Money life insurance?

While standard life insurance will cover you in most situations, there are a few things that you should be aware of. Virgin Money has several circumstances in which your policy will no longer be valid and won’t pay out.

  • Your policy won’t pay out for suicide within the first 12 months which is standard across UK insurance providers
  • Your policy will no longer cover you if you don’t pay your policy premiums (cover ends if you do not pay for 29 days or longer past the last payment due)
  • Your policy won’t cover you or pay out after your policy term has ended and you would need to reapply for a new policy
  • Your policy may be made invalid if you didn’t supply relevant information during the application process (e.g. information about your health or family medical history)
  • Virgin Money won’t pay out for terminal illness benefit if your claim is submitted within the last 12 months of your policy term

YES – Critical illness insurance is an optional add on for all types of Virgin Money life insurance. You can add this policy onto your life cover as an added level of protection against serious illness.

Critical illness cover will pay out a tax-free cash lump sum in the event you are diagnosed with a serious medical condition that is covered by your policy. Though you can add this cover to both Family & Lifestyle policies and Mortgage Life Insurance policies, in this review I am focusing on their Family & Lifestyle cover.

This is because Virgin Money Mortgage Life Insurance is provided by Legal & General, and the critical illness cover available with these policies will be the same as for Legal & General customers. Full details of which conditions are covered and how these policies work can be found in our Legal & General life insurance guide.

There are 3 types of critical illness cover that can be bought with Virgin Money Family & Lifestyle life cover which are:

  • Life and critical illness cover: This is a combined policy and will only pay out for either death/terminal illness or a critical illness diagnosis (not both) and then the cover will end. The critical illness cover amount will match the sum assured for your life insurance policy.
  • Additional critical illness cover: This is similar to the combined cover but your life cover would continue even after claiming for a critical illness (up to £300,000 worth of cover for critical illness).
  • Children’s critical illness cover: This can be added on as an extra benefit and this will pay out as financial support if your child is diagnosed with a serious medical condition.

Which critical illnesses do Virgin Money cover?

In the UK, the number of conditions covered by critical illness insurance will vary depending on the insurance provider you choose. Virgin Money will pay out for the diagnosis of one of 21 specified medical conditions.

The condition you claim for must meet the exact definitions found in your policy documents for your claim to be approved. This is a full list of all conditions covered and their definitions as covered in the Virgin Money policy summary:

  • Alzheimer’s disease (before age 65 and with permanent symptoms)
  • Aorta graft surgery (for disease or trauma)
  • Benign brain tumour (permanent symptoms)
  • Blindness (permanent and irreversible)
  • Cancer (excludes less advanced cases)
  • Coma (with permanent symptoms)
  • Coronary artery by-pass grafts (with surgery)
  • Deafness (permanent and irreversible)
  • Heart attack (of a specified severity)
  • Heart valve replacement or repair (with surgery)
  • Kidney failure (requiring regular dialysis)
  • Loss of hands or feet (permanent physical severance)
  • Loss of speech (permanent and irreversible)
  • Major organ transplant
  • Motor neurone disease (with permanent symptoms)
  • Multiple sclerosis (with current symptoms)
  • Paralysis of limbs (total and irreversible)
  • Parkinson’s disease (with permanent symptoms)
  • Stroke (of a specified severity)
  • Third degree burns (covering 20% of the surface area of either the face or body)
  • Traumatic head injury (with permanent symptoms)

Note: Policies can change and be updated over time and these conditions, and their definitions are accurate as of December 2023. It is possible that more conditions could be added in the future or that definitions may be adjusted.

ProCon
Cheap and easy to understand life insurance policiesNo waiver of premium options or increasing life insurance available with Virgin Money
FREE extra benefits added to your cover including terminal illness benefitMay not be able to cover people with pre-existing medical conditions
Can add on critical illness cover for you and your children as additional financial protectionYou can only buy term life insurance (no options for other types of cover like whole life insurance or family income benefit)

Every Virgin Money life insurance quote you see here is pulled directly from our live systems in December 2023. We make it a point to consistently verify and update pricing information from UK providers, ensuring that our guides feature precise and current figures.

Based on our most recent research of our discount quotes system, we have found the average cost of Virgin Money life insurance for non-smokers, smokers and couples (joint life insurance) if bought with iam|INSURED:

Average cost of Virgin money life insurance (non-smoker) – £9.17 per month

Average cost of Virgin money life insurance (smoker) – £19.47 per month

Average cost of Virgin money joint life insurance – £17.14 per month

In the tables below, you’ll find comparisons illustrating how Virgin Money life insurance pricing varies based on age, whether for individuals or couples. It’s important to note that factors like medical conditions and the chosen level of cover can influence life insurance costs significantly, so consider these figures as examples.

Quote criteria: These quotes were generated based on an example customer with no medical conditions who wants £150,000 worth of cover with a policy term of 20 years.

How much does Virgin Money life insurance cost?

Cost of Virgin Money life insurance for a non-smoker

Age of applicantPolicy price (premium per month) – directly from Virgin MoneyPolicy price (premium per month) – applied through iam|INSURED
20£3.11£2.75
25£3.90£3.45
30£5.23£4.62
35£7.20£6.20
40£10.24£8.90
45£17.11£15.02
50£26.65£23.31

Cost of Virgin Money life insurance for a smoker

Age of applicantPolicy price (premium per month) – directly from Virgin MoneyPolicy price (premium per month) – applied through iam|INSURED
20£4.98£4.33
25£6.45£5.47
30£8.89£7.51
35£13.35£11.38
40£22.83£19.42
45£40.06£34.58
50£62.07£53.64

How much does Virgin Money joint life insurance cost?

Age of applicantPolicy price (premium per month) – directly from Virgin MoneyPolicy price (premium per month) – applied through iam|INSURED
20£5.68£5.06
25£7.28£6.28
30£9.52£8.18
35£13.10£11.36
40£19.20£16.78
45£32.70£28.78
50£49.48£43.58

Note: The quotes for joint policies are based on both applicants being the same age and non-smokers with no medical conditions.

Like many other low-cost life insurance providers, Virgin Money may not be the best choice for applicants who have medical conditions. Virgin Money has a simple application process, which means that they usually won’t request the extra medical information needed to approve people with serious pre-existing conditions.

There are however several brilliant specialist providers that can provide cover in this situation. Certain mainstream provider may even offer cover, depending on the condition and its severity. Some of the UK’s best providers for people with medical conditions include:

It’s a good idea to really consider what you’re looking for in a life insurance provider and whether they can provide the level of cover you need. If you have any medical conditions, speaking with a life insurance expert can be helpful in finding the right policies for you.

Five Stars

Rated "Excellent" 5 out of 5

"This company went above & beyond to get me cover even though I have MS, I am very happy I managed to get cover, Amazing staff, Dean went above & beyond, I highly rate this company."

by Elizabeth Turner-Long - 9th August 2023

There are a lot of different contact numbers for Virgin Money which can make it hard to know which one is the right one to call if you have questions about your policy. This is why we have put together the list below to make things clearer and simpler for you.

Virgin Money life insurance contact details (Existing Customers)

Telephone – 0800 294 7575 (Virgin Money policies started on 23/05/17 onwards)

Opening hours – 8.00am – 8.00pm Monday to Friday / 9.00am – 5.00pm Saturday

Telephone – 0345 600 3122 (Aviva policies started between 23/02/2016 – 01/12/2016)

Telephone – 0345 602 9199 (Aviva policies started between 01/09/2009 – 23/02/2016)

Telephone – 0345 601 9645 (Scottish Widows policies started between December 2005 – August 2009)

Telephone – 0800 073 1777 (Reassure policies started before December 2005)

Opening hours – 9.00am – 5.00pm Monday to Friday

The process for claiming on a Virgin Money life insurance policy will vary slightly depending on which policy you have bought. If you have bought a Virgin Money Family & Lifestyle policy, your loved ones will need to contact Virgin Money to begin the claims process.

If you have bought a Virgin Money Mortgage Life Insurance policy, your loved ones would need to contact Legal & General to start their claim, as they are the ones who supply the cover.

The contact details for both companies can be found below to make things a little easier for you. The actual claims process should be similar, and the insurer will want to know basic details like the policy number, date of death and may request a copy of the death certificate.

Virgin Money life insurance claims contact details

For Virgin Money Family & Lifestyle Life Insurance

Telephone – 0800 294 7576

Post:

Virgin Money Life Insurance,
16 – 17 West Street,
Brighton,
BN1 2RL

For Virgin Money Mortgage Life Insurance (Legal & General policy)

Telephone – 0800 137 101

Emaillife.claims@landg.com

Post:

Claims or Cancellations Department,
Legal & General Assurance Society Limited,
City Park,
The Droveway,
Hove,
East Sussex,
BN3 7PY

Does Virgin Money life insurance pay out?

Many consumers are wary of insurance companies and think they won’t pay claims, but life insurance policies generally pay out around 98% of the time.

Until August 2023, Virgin Money policies were underwritten by Scottish Friendly Assurance Society who paid out 99.4% of all life insurance claims in 2022.

How do I cancel Virgin Money life insurance?

You are always allowed to cancel your life insurance policy if it no longer works for you. You will need to contact Virgin Money to let them know that you would like to cancel. They should then stop your cover and you will just need to cancel your direct debit with your Bank or Building Society.

You can get in touch with Virgin Money’s customer service team using the contact details found in the ‘How do I contact Virgin Money life insurance?’ section of this guide.

If you have bought a Virgin Money Mortgage Life Insurance policy provided through Legal & General, you will need to contact Legal & General directly to cancel your cover.

Legal & General cancellations contact details

Telephone – 0370 010 4080

Post:

Claims or Cancellations Department,
Legal & General Assurance Society Limited,
City Park,
The Droveway,
Hove,
East Sussex,
BN3 7PY

Note: You can get a full refund for any money paid if you cancel within the first 30 days of your policy. This is known as the policy ‘cooling off period’ and if you cancel after this period, you will not be refunded.

Insurance providers don’t always get everything right and you are entitled to complain if you’re not happy with your Virgin Money policy or the service you received. The best thing to do first would be to contact Virgin Money directly to see if they can solve the problem for you.

Generally, they will try their best to resolve complaints quickly (within 3 business days) and will inform you if this isn’t possible. You will receive a letter within 5 working days that will explain why your complaint will take longer to resolve and how they aim to make things right.

If your complaint is taking much longer than expected or you’re not happy with the outcome, you can contact the Financial Ombudsman Service (FOS) for advice and support.

Virgin Money life insurance complaints contact details

Telephone – 0800 291 7575

Opening hours – 8.00am – 9.00pm Monday to Friday / 9.00am – 5.00pm Saturdays

Post:

Customer Relations Department,
Virgin Money Life Insurance,
16 – 17 West Street,
Brighton,
BN1 2RL

Financial Ombudsman Service Logo

Making a complaint to the Financial Ombudsman Service

The Financial Ombudsman Service (FOS) is an impartial and free service for financial services customers in the UK. This service can be used to settle any disputes between life insurance companies and their customers in the United Kingdom. If they feel that you have suffered any financial loss as a result of your life insurance policy, then they may rule for compensation to be awarded.

Telephone – 0800 023 4567 (or 0300 123 9123)

Telephone (outside the UK) – 0207 964 0500

Emailcomplaint.info@financial-ombudsman.org.uk

FREE Will writing service – Virgin Money offers a completely free service to help you with writing a Will to plan your estate and how your family will be taken care of when you are gone

Children’s critical illness cover – You have the option to add children’s critical illness cover to your policy, which pays out to support you if your child is diagnosed with a serious medical condition

Accidental hospitalisation benefit – This is included with Legal & General mortgage life insurance (bought through Virgin Money) and pays out £5,000 if you are hospitalised due to accidental injuries for 28 or more consecutive days

Terminal illness cover – Terminal illness benefit is included free for all Virgin Money policies and will pay out to support you if you are diagnosed with a terminal illness (life expectancy 12 months or less)

Loved ones email service – This is feature of Virgin Money Family & Lifestyle Life Insurance and gives you the option to email a summary of your policy details to the family or friends that you would want to claim in the event of your death

Option to place your policy into Trust – You can place your life insurance policy into Trust which allows you to specify exactly who benefits from your policy when you die and how the money is used

FREE legal advice – You can receive 1 hour of free legal advice from Virgin Money’s partner Minister Law to help with end of life decisions or any other legal advice you may need

Death records searches so claims always pay out – This is feature of Virgin Money Family & Lifestyle Life Insurance and Virgin Money will periodically check UK death records to ensure no eligible policy claims remain unpaid

Note: The terms and conditions for any benefits provided by Virgin Money life insurance can be found on the Virgin Money website. Benefits also may change over time and this list is accurate as of December 2023.

Many people find it helpful to look at customer reviews online before buying a new life insurance policy. While you can look at all the policy features, it’s useful to get an idea of what real customers think about a provider before you make any decisions.

Virgin Money collects customer reviews on the UK’s most popular independent review site TrustPilot. You may also want to look at the industry awards and ratings received by Virgin Money, to work out if the policies really do offer decent benefits and good value for money.

Virgin Money life insurance TrustPilot rating

Virgin Money (TrustPilot score) – 1.3 out of 5.0 stars (with 6,535 reviews)

Though this score is fairly low, it’s important to note that the rating applies to all Virgin Money products and services and isn’t specific to their life insurance policies. In fact, when looking at the reviews, very few mention having a life insurance policy with Virgin Money and are complaining about other products.

Virgin Money life insurance Defaqto rating

Defaqto ratings are a useful way to assess the quality of a life insurance product as rated by industry experts. Virgin Money policies have the highest possible rating for their life cover based on excellent products and a comprehensive range of features and benefits.

Virgin Money Defaqto score – 5 Star (Life Assurance)

You can look on the defato website to find out the rating for any insurance product on the UK market and can even search the insurer by name to make this easier for you.

Virgin Money also sells various other types of insurance policy including:

How safe is Virgin Money?

Virgin Money is a highly regulated financial business who are thoroughly checked by organisations like the Financial Conduct Authority.

Your insurance policy would also be covered under the Financial Services Compensation Scheme (FSCS). This means if Virgin Money ever went under and could not pay out on your life insurance policy, you would still be protected and receive the money you are entitled to.


Is Virgin Money closing down?

Virgin Money has closed several in person branches in the UK over the last few years. This is the same as many other banks in the UK including Barclays and NatWest.

While you might be concerned about branch closures, these wouldn’t affect any bank accounts or insurance policies held with Virgin Money. Your insurance is still in place even if your local Virgin Money branch has closed down.


Is Virgin Money a real bank?

YES – Virgin Money has been providing financial services in the UK since 1995 and got their official banking licence in 2000.

While they were taken over and merged with Clydesdale Bank in 2018, they still work as a bank in their own right.

Virgin Money life insurance is becoming more popular in the UK, mainly due to the lower cost of cover and extra features added.

Most of the cheaper life insurance providers (e.g. Beagle Street and Budget Insurance) provide the same low prices but offer less additional features than Virgin Money does.

If Virgin Money life insurance feels like a good fit for you, you can get a quick discount quote for cover on our online quotes tool.

Virgin Money will accept direct applications but their team won’t be able to advise on which type of policy will work best for you. They will only be able to explain how the features and benefits of the policy work and can’t compare them with other policies on the market.

This is why it can be better to apply through a discount life insurance expert like us, who can show you all your available quotes and let you make your own choice. Our online system is also quick and easy, so you don’t have the hassle of a long drawn out application process.

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