Scottish Widows Life Insurance Review

  • A very familiar British insurer with a long history in Scotland and the UK which also benefits from a strong brand image
  • A strong corporate commitment to a social dimension of life insurance and a commitment to service
  • 5-Star Defaqto ratings and some of the highest pay-out ratings noted 

About Scottish Widows  

The company has its origins in the Edinburgh of 1812. Its original objective was to set up a general fund for “securing provisions to widows, sisters and other females”.

It officially opened for business in 1815. It was well-known for providing financial support to the survivors and families of the Titanic disaster (1912) well into the late 1950s.

In 2009, Scottish Widows became part of the Lloyds Banking Group. Today it has around 6 million customers and employs around 3,000 people in the UK.

For your peace of mind, Scottish Widows is regulated by the Financial Conduct Authority (FCA).

Scottish Widows’ life insurance options

Scottish Widow’s product portfolio includes the following.

Life Cover

The company offers:

  • level cover

the benefit amount and the premiums remain the same throughout the benefit term. The benefit can be used, for example, to help you protect an interest-only mortgage or to provide those you leave behind with a lump sum to cover for any loss of income as a result of your death;

  • decreasing cover

although your payments will remain the same during the term of the policy, the amount that is paid out in the event of your death will decrease over the term. This is often aligned to a standard repayment mortgage where the debt also reduces over time. This form of cover is typically lower cost than level-term cover;

  • increasing cover

here the benefit amount automatically increases each year in line with the RPI (Retail Price Index). The increases will typically be a minimum of 2% up to a maximum of 10%. At the same time, your premium will increase at a higher rate than the increase in benefit amount. This is often selected by those wishing to hedge against the potential effects of future inflation on the amount their beneficiaries will receive;

  • premium protection

this will cover you for your premiums meaning you wouldn’t have to pay them should you suffer a disability or accident which leaves you unable to work. This will start to pay the premiums for you after 13 weeks have elapsed. This option can only be added as an optional extra and at an additional cost, at the time you take out the policy.

Critical Illness Cover

Options include:

  • critical illness cover provisions which would pay out a cash sum should you be diagnosed with a covered critical illness during the term of the policy;
  • critical illness cover can be taken out with life cover. That means you would also be covered should you die or be diagnosed with a terminal illness during the term of the policy;
  • children’s critical illness cover and children's life cover is also included at no extra cost;
  • access to the “Best Doctors” service is included at no extra cost, providing you with access to top medical specialists for a second opinion.

Lifetime Cover

  • pays out a lump sum on death;
  • the lump sum can be level or increasing;
  • can be available on a single life basis or with two lives covered;
  • access to the “Best Doctors” service;
  • conditions apply, including - you must reside in England, Wales, Scotland or Northern Ireland but not the Isle of Man or the Channel Islands. You must have a UK bank account. You have a minimum age at start or 18 and a maximum of 74.

Important Information

Important – Please remember that Scottish Widows’ life insurance products are not savings or investment plans of any kind. These policies have no cash-in value and should not be considered as any form of investment.

Your premium provides you with life cover. If you stop paying your premiums, your cover will cease, unless you have stopped paying for approved reasons under any “waiver of premiums” options the provider may offer. If you cease paying for other reasons, there would be no money due back to you from previously paid premiums.

Reasons why you may want to consider Scottish Widows’ life insurance plans

The main attractions of these plans and ones which might make Scottish Widows life insurance quotes interesting include:

  • they are a very well-known and exceptionally long established British provider with an extensive history in Scotland and the UK;
  • although no longer a mutual, they retain a strong social dimension and a commitment to public service;
  • Scottish Widows openly publish their life insurance pay-out rates which are amongst some of the highest. For example, in 2016 they paid out in 99.4% of all life insurance claims.
  • automatic critical illness cover for children. Scottish Widows will also pay out a one-off benefit of £5,000 in the event of the death of a child with a critical illness;
  • terminal illness cover and total permanent disability cover is automatically included on Scottish Widows life policies;
  • life cover and critical illness cover is offered as a family income benefit if required;
  • you can select to choose the interest rate for your decreasing life insurance cover. You can opt for anything between 0% and 18%.
  • Defaqto 5-star ratings for 2018;

As with all life insurance reviews, qualifying conditions and terms may apply for all Scottish Widows products. These should always be noted carefully and complied with to ensure that cover remains fully in place.

See how Scottish Widows Life Insurance Compares

Company Monthly Premium  Cover Amount

 Scottish Widows
 
 
£17.85

 £100,000

 

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Aviva
 
 
£19.11

 £100,000
 
 

Get a Quote
 
Royal London

 
 
£21.74

 £100,000

 

Get a Quote
 
Vitality
 
 
£15.00

 £100,000
 
 

Get a Quote

 LV
 
 
£16.24

 £100,000

 

Get a Quote

Zurich

£22.00 £100,000
Get a Quote

 Aegon
 
 
£17.35

 £100,000

 

Get a Quote
 
AIG
 
 
£15.93

 £100,000
 
 

Get a Quote
Based on male non smoker aged 50 yrs of age for 20 years - no health questions answered. This is for illustration purposes only & you should obtain a personal health quotation as policies do vary. Correct as at 18/01/2018

How to get a Scottish Widows’ life insurance plan quote

To compare life insurance quotes, you can use our comparison service through our partner  Reassured. They are regulated by the FCA and will, on your behalf, look at the whole of the market for similar plans being offered at the same price, ensuring that you get advice on all providers’ plans that suit your circumstances and budget.

You could start by getting an online life insurance plan quote here and then if you wish, call them on 0808 301 2291 to discuss your options and how they can keep the monthly costs as attractive as possible for you.

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Scottish Widows

Life Insurance

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