Compare First Direct Life Insurance Quotes Against The Market

Founded in 1989, First Direct is a division of HSBC UK Bank plc. While First Direct is famous for its award-winning customer service and "human-centric" banking, its life insurance products are provided and underwritten by HSBC Life (UK) Limited.

In 2026, First Direct serves as a streamlined portal for HSBC’s protection suite. Currently, the bank primarily offers life insurance as part of its mortgage application process, rather than as a standalone online product for all customers.

At a Glance: First Direct Life Insurance

• Underwriter: HSBC Life (UK) Limited

• Monthly Premium: Competitive rates starting from as low as £5 per month

• Claims Record: Backed by HSBC Life, which has a strong claims payout rate of 97.5%

• Unique Selling Point: Integrated health support services and NHS Waiting List triggers for critical illness

• Best For: Existing First Direct mortgage customers and those who prioritize high-quality, phone-based customer support

Types of Life Insurance Offered

First Direct’s life insurance, delivered via HSBC, focuses on two main term products designed for family and debt protection.

1. Level Term Life Insurance

This policy pays a fixed lump sum if you die during the policy term.

• Fixed Support: Your premiums and the potential payout amount stay the same throughout the years

• Purpose: Often used for family protection or to cover interest-only mortgages

2. Decreasing Term Life Insurance

Often referred to as mortgage life insurance, the payout reduces over time.

• Debt Matching: The cover amount decreases roughly in line with the remaining balance of a repayment mortgage

• Affordability: This is typically the most cost-effective way to ensure a mortgage is cleared if you pass away

3. Critical Illness Cover (Optional Extra)

You can add critical illness protection to your life policy for an additional cost.

• Broad Protection: Covers a range of serious conditions, including cancer, heart attack, and stroke.

• Advanced Triggers: Includes payouts for certain major surgeries if you are placed on an NHS waiting list, rather than waiting for the procedure itself.

Pros and Cons

The Pros

• Superior Customer Service: First Direct consistently receives "Excellent" ratings for customer service, with reviewers praising their helpful and professional staff

• High Claims Reliability: Access to HSBC’s robust claims payout record of 97.5%

• Health Support Services: Policies often include 24/7 access to UK-registered GPs online or by phone, as well as mental health and bereavement support

• Day One Terminal Illness Cover: Includes terminal illness cover as standard, paying 100% of your lump sum in advance if you have a life expectancy of less than 12 months

The Cons

• Limited Online Availability: Currently, First Direct primarily offers life insurance to customers applying for a First Direct mortgage

• Not a Specialist Insurer: While robust, they lack the highly specialised niche products found with boutique providers

• Standard Underwriting: Not specifically tailored for high-risk medical conditions compared to specialist brokers

Customer Consensus

First Direct currently holds an "Excellent" 4.7/5 rating on Trustpilot and Smart Money People.

• The Positives: Customers frequently highlight the speed and ease of connecting with real staff who are "professional, friendly, and knowledgeable". The app is also praised for its simplicity and ease of use

• The Negatives: Some long-term customers have noticed a slight drop in customer service over the last 12 months, and others find the app's functionality limited compared to newer challenger banks

How Their Products Compare to the Rest of the Market

First Direct (via HSBC) is positioned as a reliable, high-service provider with a focus on modern healthcare benefits.

• Rates: Starting at £5 per month, their premiums are highly competitive with other value-led providers like Legal & General or Aviva

• Product Range: While their core term insurance is excellent, they lack the Whole of Life or Guaranteed Acceptance Over 50s plans offered by specialists like SunLife or Royal London

• Claims Performance: Their 97.5% payout rate is above the industry average, though slightly behind industry leaders like Scottish Widows or Royal London

How Our Life Insurance Advisers Can Help

First Direct is a premier choice for banking service, but their life insurance is largely restricted to mortgage applicants. Our team of independent life insurance advisers can help you determine if an HSBC-underwritten policy is your best fit. We provide:

• Whole-of-Market Comparison: We stack First Direct’s rates against the entire UK market to ensure you aren't missing out on lower premiums elsewhere

• Alternative Options: If you are not a mortgage customer or have a complex medical history, we can find specialists more suited to your specific health profile

• Trust & Inheritance Guidance: We can help you place your policy in a Trust, ensuring your loved ones receive a faster payout that avoids Inheritance Tax

To get started with an independent financial adviser with expertise in life insurance, simply get started here