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”. 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
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;
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;
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;
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
- 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.
- 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.