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Life insurance is used to provide a lump sum if you die. The money can be used for anything but is normally used to pay off a mortgage, to provide child care or to ease the financial pressures should the worst happen.

There are two main types of policy:

Term Life
This type of policy runs for a specific period of time which you can choose. After this period of time the policy ends and the cover stops. If a claim has not been made by the end of the specified time period there is no payout.

Whole of Life
This type of policy runs until you die so there is always a payout as long as you keep up the payments.

It is important you choose the right policy, the costs, benefits and risks of each and how the money will be used.

Our life cover is provided by Cignpost Life and is a Term Life policy.

This depends on the type of policy you take out. People with a repayment mortgage often choose a decreasing term life policy because the amount of cover decreases as the outstanding balance on your mortgage decreases. This means the cost is lower than a level term policy where the amount of cover remains the same throughout the term.

Cignpost Life cover stars from £5 a month but will depend on your health, your age and whether you smoke or not. Other factors include how long you want your insurance to run, and the amount of cover you choose.

Cignpost Life is one of the fastest ways to obtain life insurance available. We ask just 5 simple questions which mean you could be covered instantly without the need to talk to anyone.

The amount of cover you need will depend on your own personal circumstance, there is no one-size-fits-all answer. The factors you may need to consider include covering;

  • Mortgage or rent payments
  • Any other loan or debt repayments
  • Household bills
  • Education and childcare expenses
  • Loss of income

If you are using the policy to cove a mortgage then you may want the policy term to be the same as the remaining length of you mortgage

If you are using the policy for family protection people often choose a term that provides cover until your children reach independence. The choice is yours.

Premiums for level or decreasing term policies won’t change throughout the length of your policy, unless you make changes to your cover amount or choose to take out the increasing cover option. If You have chosen increasing cover, your premiums will increase by 3.75% on each Plan Anniversary. To find out more please view our product terms and conditions and key features document.

The only time our partner Cignpost will cancel your plan is if you act fraudulently, or deliberately provide untrue, inaccurate or misleading information when taking out the policy, or when making a claim.

If you stop paying your premiums, your cover will stop and you won’t get anything back. However, we will give you 60 days from the due date for you to pay a premium before this happens.

There’s different types of life insurance; they all aim to offer financial protection for when the policy holder dies and offer slightly different types of cover.

  • Level term life policies – The payout and cover stays the same throughout the amount of time you are insured for. Put simply, you decide the amount of cover to take out and that’s what the policy pays. This is often taken out for families, who want to cover for costs such as protecting their families lifestyle or child care costs as well as monthly outgoings such as a mortgage.
  • Increasing term life policies – as the name suggests, this increases the payout the longer the policy runs. The cover amount increases each year by 3% and your premiums increase by 3.75% each year to pay for the increased cover and age. The increasing option helps to provide some degree of protection against the risk of inflation.
  • Decreasing term life policies – the cover amount decreases each year to pay off an outstanding mortgage or loan by the end of the term based on an interest rate of 8%. This is because your debt should be decreasing as you repay it over time. If you claim, the cover amount should pay off your outstanding repayment mortgage (or loan), provided that:
    1. The cover amount at the start of the plan is at least the amount of your repayment mortgage or loan
    2. You keep your mortgage (or loan) payments up to date
    3. Your mortgage (or loan) interest rate does not go above 8% a year. If interest rates are less than 8%, the cover amount could be more than required to settle your mortgage (or loan).
    Your premiums will remain the same throughout.

We give you 60 days from the due date for you to pay a premium. If you do not make a payment within this time, your cover will stop and your policy will be cancelled.

Access to the Primas Life Rewards package may be suspended during this time.

When the policy term has ended, the cover ends and you won’t get anything back.Cignpost won’t pay a claim if the policy term has ended or has been cancelled.

The payout won’t be liable for Income or Capital Gains tax. However, if your estate is large enough, there may be an inheritance tax liability.

Some employers provide death in service benefits. This means employees receive a tax free lump sum if they die while they are employed by the firm. Often, the benefit is linked to being part of the company pension scheme. You would need to check the scheme rules to see if this benefit applies to you and if so, how much the lump sum would be. It is possible the amount will be lower than the cover needed to provide for your family and it cannot be assigned to repay a mortgage.

If you change employer the benefit is lost so to maintain cover you would need to set up a separate policy. As you get older the cost of life insurance increases and if your health deteriorates then the cost will increase further.

Death in service benefits often don’t give you the flexibility needed to fit your personal circumstances so it is important to check the scheme rules if you think you may have this benefit.

If you want to change the amount of cover, or change the end date of your policy, or change the type of cover you have, you’ll need to apply for a new policy.

If you want to reduce the amount of cover or shorten the term then please contact Cignpost here. If you reduce the amount of cover, or shorten the term, and then want to increase them again in the future, you’ll have to apply for a new policy.

You can cancel your policy at any time.

If you change your mind within 30 days of your plan starting, we’ll refund your premiums. If you cancel at any other time, your cover will end and you won’t get anything back. Your policy has no cash-in value at any time.

To cancel your plan, simply call Cignpost Life on 0330 123 3747. Or you can write to us at Cignpost Life, Freepost Cignpost Life Customer Service.

Cancelling your plan will also cancel your access to Primas Life Rewards.

A claim can be made by telephoning Cignpost Life on 0330 123 3747

Or by writing to them at:
Claims Department,
Cignpost Life
Freepost Cignpost Life Customer Service

For more information visit https://www.cignpostlife.co.uk/claims


We will normally ask to see an original death certificate. If the death certificate hasn’t been issued, we may need to see the Coroner’s fact of death certificate. We will return original documents to you immediately.

We may need other information or documents depending on the circumstances. So please contact us.

For more information  please visit https://www.cignpostlife.co.uk/claims

We aim to transfer money within two days of receiving all the paperwork. From the first contact to the money being transferred would normally take no more than 2 weeks.

Part of the claims process will include a check to ensure the application was completed truthfully and accurately. The claim may not be paid if the person insured did not fully answer the questions about their health or lifestyle. A copy of the application form is available on request. In the vast majority of cases there are no problems.

For more information visit https://www.cignpostlife.co.uk/claims

State benefits might not be enough to replace your income if something goes wrong. Critical illness cover provides peace of mind providing cover for a range of serious illnesses. You should consider getting critical illness cover if:

You don’t have enough savings to tide you over if you become seriously ill
You don’t have an employee benefits package or it isn’t enough to support you financially following a serious illness.
Cignpost Critical Illness cover is an optional addition to the Term Life cover. You can choose a cover amount of up to £100,000 for Cignpost Critical Illness cover. You can increase or reduce your level of cover amount up to the maximum limits at a later date, although increases depend on you still being in good health.

Your Cignpost Critical Illness cover amount doesn’t have to be the same as your Cignpost Term Life cover amount. The people covered, type of cover and premium type will be the same between Term Life and Critical Illness.

A smaller additional lump sum may also be payable on diagnosis of certain critical illnesses or for other events which aren’t covered by the main list of critical illnesses. This is called Cignpost Life Additional Critical Illness Cover.

For full details on what is and isn’t covered please read our product terms and conditions and key features document.

A summary of the conditions covered by Cignpost Critical Illness cover include;

  • Aorta graft surgery – for disease
  • Aplastic anaemia – resulting in permanent symptoms
  • Bacterial meningitis – resulting in permanent symptoms
  • Benign brain tumour – resulting in permanent symptoms
  • Benign spinal cord tumour
  • 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
  • Deafness – permanent and irreversible
  • Dementia including Alzheimer’s Disease – resulting in permanent symptoms
  • Devic’s disease (Neuromyelitis Optica) – with persisting symptoms
  • Heart attack – of specified severity
  • Heart valve replacement or repair
  • HIV infection – caught from a blood transfusion, by physical assault or at work
  • Kidney failure – requiring permanent dialysis
  • Liver failure – of advanced stage
  • Loss of hands or feet – permanent physical severance
  • Loss of speech – total permanent and irreversible
  • Loss of the physical ability to look after yourself
  • Major organ transplant – from another person
  • Motor neurone disease – resulting in permanent symptoms
  • Multiple sclerosis – with persisting symptoms
  • Open (structural) heart surgery – with surgery to divide the breastbone
  • Paralysis of limb – total and irreversible
  • Parkinson’s disease – resulting in permanent symptoms
  • Respiratory failure – of advanced stage
  • Stroke – resulting in permanent symptoms
  • Third degree burns – covering 20% of the body’s surface area
  • Traumatic head injury – resulting in permanent symptoms

Full details on the conditions covered can be found in our product terms and conditions.

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