Egg Life Insurance

Updated: Periodically. Details correct at the time of publication – October, 2007.

Egg is an online financial services provider launched in 1998 with more than 3.6m customers to its online bank. Egg has also become a leading UK life insurance company, with a number of different life insurance policies on offer, including general life insurance (also known as 'Egg life assurance' or 'Egg term assurance'), and critical illness cover.

According to Egg's official website, its life insurance cover starts at just £5/month. Additionally, by buying online you will receive 25% off your premium. You can also receive 25% off when you take out Egg life insurance alongside an Egg mortgage. As additional benefits, you can choose to pay monthly by direct debit, there is free cover for up to three months when home buying (from the time your application is accepted) and with critical illness insurance you are protected if you become disabled and children's cover is included.

Egg's life insurance (decreasing cover) policy is a plan designed to repay the outstanding balance on a standard repayment mortgage if you die. The policy can also be taken with critical illness cover to receive a benefit whenever you want if you are not expected to live longer than 12 months. You can also choose between single and joint cover - with a benefit paid out only once.

The general life insurance policy with critical illness cover offered by Egg pays out a lump sum in the event of your death or if you become terminally ill during the cover period. For flexibility you can choose separate amounts for life and critical illness cover and even if you receive a critical illness payout, your life insurance remains in force.