If you have dependents or financial commitments like a mortgage, life insurance is an important consideration as it will pay out a cash lump sum of money when you die.
This independent Scottish Widows review takes a closer look at Scottish Widows’ life insurance policy, including the types of cover available, typical costs and additional benefits. We work out if Scottish Widows life insurance is any good by sharing customer reviews and rankings while explaining how to compare the price and quality of life insurance policies from across the market - you can get up to £100 cashback* when you buy life insurance this way.
About Scottish Widows
Scottish Widows was established in 1815 to take care of women and children who had lost their fathers, brothers and husbands in the Napoleonic Wars. The Scottish Widows’ Fund and Life Assurance Society opened for business on 2 January that year, and in 1821 it bought its first property for its sole use in Edinburgh.
In 1995, Scottish Widows Bank launched, offering customers a range of savings, loans and mortgage products. Five years later it was demutualised and became part of the Lloyds TSB Marketing Group. In January 2009, Scottish Widows became part of the Lloyds Banking Group, and it now has almost six million customers.
Scottish Widows won Moneyfacts Best Personal Pension Provider in 2022 as well as a 5-star Financial Adviser award for Pensions and Protection in the same year. Also, Scottish Widows' level and decreasing life and critical illness insurance products and its recently launched income protection insurance have received a 5-star Defaqto rating. This means that they are considered to be "an excellent product with a comprehensive range of features and benefits".
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Scottish Widows Overview
Below is an overview of Scottish Widows’ life insurance policy, including cover types, the company’s claims record and additional benefits.
- Policy types: Choose from level term, decreasing term and increasing term cover, as well as single and joint policies. Terminal Illness Cover is automatically included and you can combine life insurance with Critical Illness cover. You can also add income protection insurance to your life insurance under a menu plan or buy it as a standalone policy.
- Claims record: 2023 - Life insurance 99.4%, critical illness 92.3%. 2022 - Life insurance 99%, critical illness 93%. 2021 - Life insurance 98%, critical illness 93%. 2020 - Life insurance 99.5%, critical illness 94.2%. 2019 - Life insurance 99%, critical illness 93%.
- Additional benefits: Free accidental death cover and free mortgage cover are included from when your application is received for up to 90 days. Policyholders have access to Scottish Widows Care which provides counselling services and other support from qualified nurses.
- Up to £100 cashback: If you apply for a policy through LifeSearch* (simply click on the link and fill out the short form), you will receive up to £100 cashback. You can find out more below.
Scottish Widows Policy Summary
Key facts and features for Scottish Widows' life insurance policy can be found in the table below:
Scottish Widows life insurance summary
| Type of cover | Life Insurance |
| Options | Level, decreasing and increasing term cover. |
| Policy Coverage | Single or joint life first event (pays out on first death). |
| Terminal Illness Cover included? | Terminal Illness Cover is included which pays out if the policyholder is diagnosed with an illness that is likely to cause death within 12 months. |
| Can cover increase over time (indexation)? | If you choose increasing cover, the sum assured will increase each year in line with the Retail Price Index. The increase will be at least 2%, up to a maximum of 10%. |
| Waiver of Premium | You can choose to add waiver of premium (Premium Protection) for an additional cost. This means you won’t have to pay your premiums after 26 weeks if you cannot work. |
| Minimum age at entry | 18 |
| Maximum age at entry | 79 |
| Policy Exclusions | No life insurance payout will be made in the circumstances of suicide in the first 12 months. Terminal Illness Cover will not pay out if the illness is not expected to cause death within 12 months. |
How much does Scottish Widows insurance cost?
The tables below show monthly premiums for £250,000 of level term life insurance with Scottish Widows over a 20-year term.
We have looked at figures for both a non-smoker and a smoker in various age groups and compared the costs to the cheapest and most expensive premiums in the market.
Scottish Widows life insurance price comparison - £250,000 of cover over 20 years (Non-Smoker)
| Scottish Widows premium | Cheapest premium | Most expensive premium | |
| 25-year-old non-smoker | £7.07 | £5.85 | £7.94 |
| 35-year-old non-smoker | £11.54 | £10.26 | £12.22 |
| 45-year-old non-smoker | £24.42 | £23.50 | £28.55 |
These prices are based on a person in good health and are correct as of 23rd September 2024
Scottish Widows life insurance price comparison - £250,000 of cover over 20 years (Smoker)
| Scottish Widows premium | Cheapest premium | Most expensive premium | |
| 25-year-old smoker | £10.19 | £9.40 | £11.58 |
| 35-year-old smoker | £20.84 | £19.16 | £23.48 |
| 45-year-old smoker | £53.98 | £51.33 | £70.55 |
These prices are based on a person in good health and are correct as of 23rd September 2024
It’s important to use the above figures as a guideline only. The amount you, as an individual, will pay for your life insurance premiums will depend on a number of factors, including:
- Your age
- Your health
- Whether you smoke
- Your occupation (some roles are deemed as higher risk so premiums will be higher)
- The amount of cover you choose
- The term of your policy
To ensure you choose the right policy at the best price, it is worth speaking to an independent insurance specialist first. Below we explain how you can also qualify for up to £100 cashback if you decide to take out a life insurance cover policy.
Key facts and features for Scottish Widows’ critical illness policy can be found in the table below:
Scottish Widows critical illness insurance summary
| Type of cover | Critical Illness |
| Can it be combined with life cover | Yes |
| Premium type | Guaranteed |
| Number of critical illnesses covered | 30 full payment conditions,10 partial payment (50% of sum assured up to £30,000) conditions and 5 child-specific conditions are covered |
| Children's critical illness cover included | Yes - automatically included. Your child will be covered for 50% of the adult cover amount up to £30,000 |
| Minimum age at entry | 18 |
| Maximum age at entry | 64 |
| Policy exclusions | No payout will be given if you are diagnosed with an illness that is not covered by the policy. Children’s critical illness will not pay out if the illness symptoms started before the policy began. |
Scottish Widows income protection insurance summary
| Type of cover | Income protection insurance |
| Can it be combined with life cover | It can be bought under the same plan as life insurance and critical illness insurance but is a standalone policy |
| Premium type | Guaranteed |
| Sum assured | Up to £20,000 per month based on income (£12,000 if index-linked) |
| Index-linking | If chosen index-linking will increase the benefit by retail price index (RPI) each year and the |
| Minimum term | 5 years |
| Maximum age when cover finishes | 70 years old (may vary depending on your occupation) |
| Benefit term | Choice of full-term benefits or limited 2-year benefits policy |
| Additional benefits |
|
| Minimum age at entry | 18 |
| Maximum age at entry | 59 |
Additional free benefits provided by Scottish Widows
- Terminal Illness Cover is automatically included with life cover and will pay out if you are diagnosed with an illness that is likely to cause death within 12 months.
- Accidental death benefit provides cover from when your application is received for up to 90 days or until your application is accepted, declined or postponed.
- Free mortgage cover for new mortgages starts from the date your application is received and lasts for up to 90 days.
- Access to Scottish Widows Care which is provided in partnership with RedArc and offers long-term practical advice and emotional support.
- Replacement cover is included if you have a joint policy. This means that after a claim is made, the person who hasn’t claimed can take out a new policy on the terms and conditions of the previous policy.
- Children’s critical illness cover is automatically included if you take out your own policy. This will cover your children from birth to the age of 22 and will pay out 50% of the amount of your cover, up to a maximum of £30,000.
- Children’s life cover is also included if you take out critical illness cover. This will pay out £10,000 in the event of the death of a child.
- Policies are portable so where two people have policies within the same plan, they can split the plan and move policies into a new plan if they choose to.
Optional benefits provided by Scottish Widows
- Option to include Critical illness cover which pays if you are diagnosed with a critical illness that is listed within the policy terms.
- Option to add Premium Protection (sometimes called Waiver of Premium) which means you won’t have to pay your premiums if you are unable to work due to an accident or illness. Scottish Widows will start to pay your premiums after 26 weeks.
- Option to add Life Cover Buyback to a life and critical illness policy. This allows you to buy back your life cover if a critical illness claim has been paid.
Is Scottish Widows life insurance any good?
Although life insurance can seem straightforward, insurance companies vary in the quality of service and benefits that you receive as a customer. One of the key measures is claims and Scottish Widows paid out an average of 98.9% of its claims for life insurance over four years. The time that claims take to be paid and the care that an insurer shows will impact your customer experience and some insurers are better than others when it comes to making changes to your policy during your life or requesting other types of administrative assistance. The reviews that we have detailed below reflect customers' ratings based on their experience of Scottish Widows as well as how Scottish Widows performs against the criteria set out by financial performance organisations such as Defaqto and Fairer Finance.
Scottish Widows life insurance reviews
- Scottish Widows' life insurance and critical illness products are rated 5 stars by Defaqto which means the products are deemed to provide a comprehensive range of features and benefits. Similar insurance products under the Protection Menu Plan are rated 4 stars meaning they may offer fewer features and benefits than those bought individually.
- Defaqto also rates Scottish Widows' Protection service, 'Gold'.
- Trustpilot customer reviews rank Scottish Widows at 4.3 out of 5 stars based on over 5,000 customer experiences but this covers all of Scottish Widow's financial products and not only life insurance.
- Scottish Widows life insurance received a 72% Fairer Finance score and was ranked 18th out of 24 providers.
- Fairer Finance scored Scottish Widows life insurance 72% overall - while it scored well for claims at 90.4%, the transparency score was relatively low at 57.96%.
Is Scottish Widows critical illness cover any good?
Scottish Widows critical illness cover is rated 5-star by Defaqto, which means it offers comprehensive features and benefits. When comparing critical illness cover, you should consider the cost, claims history and the range of conditions the policy will cover. It is important to note that a higher price doesn't always denote a better quality of cover when it comes to critical illness insurance. Scottish Widows has paid out an average of 93.3% of the critical illness claims it received over 4 years. Although this is a high statistic, many insurers have paid over 95% or even 98% of the critical illness claims against similar policies.
Scottish Widows critical illness insurance provides cover for children within the adult policy so it is automatically included. The number of conditions covered under Scottish Widows critical illness insurance is relatively low - 30 conditions are covered for a full payout and a further 10 for a partial payout.
Some insurers provide cover for over twice as many medical conditions. If you wish to compare critical illness policies and what they cost across a wide range of insurers, you should speak to a specialist personal insurance adviser* who will recommend the best life and critical illness cover that suits your budget. You will also find more information in our article, "Best and cheapest critical illness cover in the UK".
Is Scottish Widows income protection insurance any good?
The income protection insurance product is one that is new to Scottish Widows portfolio of personal insurance products. It allows customers of Scottish Widows to buy all of their personal insurance products under one one menu plan which can be advantageous when it comes to administration and claims. The income protection insurance is in line with a number of good income protection policies provided by other providers and includes a variety of additional benefits that can help if you were to make a claim and some that you may use even if you do not claim the benefits. The proportionate and rehabilitation benefits can give you financial security while you transition back to work after time off due to incapacity. The access to Scottish Widows care also gives policyholders 24/7 access to GP services as well as wellbeing support services. Scottish Widows also states that it will provide, "an immediate income payment which a customer will receive whilst a claim is still being assessed, provided a GP note is supplied and once the deferred period has passed".
Best way to buy Scottish Widows life insurance?
If you’re planning to buy a life insurance policy with Scottish Widows, it’s a good idea to speak to an independent insurance specialist first. They will be able to advise you on the best life insurance or critical illness policy for your circumstances and help you assess how much cover you need for full financial protection and peace of mind.
Independent specialists will be able to access quotes from all major insurance companies, and they can also match you with an insurance provider who will view your application more favourably. In addition, they will be on hand to help you complete your application forms, put your policy into trust and help you claim in the future.
Simply complete this short form* to receive a callback at a time that suits you. There is no obligation to take things further but if you do, you will qualify for up to £100 cashback.
How to cancel Scottish Widows life insurance
Life insurance, which is term life insurance and does not have a cash-in value, is quite simple to cancel but you should take steps to ensure that you do so without incurring any extra charges or leaving yourself uninsured. If you are not sure what type of policy you have you can call Scottish Widows using the link below which will direct you to the correct phone number based on your policy details.
If you arrange your life insurance through an adviser then it is usually best to get in touch with them so that they can review the advice you were given and make the necessary cancellations for you. This is especially helpful if you are struggling to make payments or if your circumstances have changed - a review will provide you with peace of mind that your actions are considered and don't leave you or your family vulnerable.
Depending on when and how you arranged your life insurance policy, you will need to contact Scottish Widows to inform them that you wish to cancel your life insurance. You should be able to do this with immediate effect so that your next payment is not collected, although pending payments may still be collected. Once you have cancelled your Scottish Widows life insurance, you should check that your payment method is stopped.
Scottish Widows life insurance summary
- Established in 1815.
- In 2023, Scottish Widows paid out 99.4% of all life insurance claims and 92.3% of critical illness insurance claims.
- Life insurance automatically includes Terminal Illness Cover and can also be combined with Critical Illness cover.
- Children’s critical illness cover and life cover are automatically included if you take out your own critical illness policy.
- Free accidental death and mortgage cover are included from when your application is received for up to 90 days.
- Policyholders have access to Scottish Widows Care which provides counselling and other support services.
- Scottish Widows life insurance may not necessarily be the cheapest option for you as the amount you pay will depend on a number of factors. It’s therefore best to shop around and compare deals carefully.
- If you buy a life insurance policy through LifeSearch*, you will receive up to £100 cashback. Simply click on the link and fill in the short form to be called back at a time that suits you.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses and do not wish to qualify for the cashback referred to in the article - LifeSearch
