Scottish Widows life insurance review

Automatic critical illness cover for children.

Other insurers’ critical illness policies will cover you for more conditions than Scottish Widows

Scottish Widows was set up over 200 years ago to help keep families from being plunged into poverty. And in essence, that’s what it’s still doing. The brand came top for life insurance in our Finder Customer Satisfaction Awards 2023, with 82% of customers saying they’d recommend it, and a satisfaction score of 4.5 stars out of 5.

Life insurance is still a vital form of protection today and is designed to give your loved ones financial help should you pass away. It means they can focus on grieving rather than stressing about mortgage payments or living expenses.

In this review we analyse the different life insurance policies Scottish Widows offers – so you can work out if it’s the right provider for you and your family.

Who is Scottish Widows?

Scottish Widows was founded in the early 1800s by a group of Scotsmen to financially protect their wives, sisters and other female relatives.

These days it is part of the Lloyds Banking Group and has nearly 6 million customers, which it sells a wide range of pension and insurance products to.

What types of life insurance does Scottish Widows offer?

Scottish Widows’ life insurance products pay out a lump sum if you die or are diagnosed with a terminal illness. Should you die, this injection of cash could really help your family out financially in their time of distress.

Scottish Widows offers 3 broad types of policies to protect your family in the event you die or develop a serious illness. We explore them below.

• Life Cover (term life insurance)
• Lifetime Cover (whole life insurance)
• Critical Illness with Life Cover

Compare Scottish Widows policies?

Sort by:

Name	Product	Age range at application	Cover range	Term	Pays out	Joint cover	Link
Scottish Widows Life Cover (term insurance)		18-79	£2,000 to £5m	Minimum 1 year	If you die or get a terminal illness and aren’t expected to live longer than 12 months	Yes – only pays out for the first member of a couple to become terminally ill or die		Compare	loading Fetching your data...
Scottish Widows Lifetime Cover (whole life insurance)		18-79	Level term and increasing/decreasing options available		If a policyholder dies or is diagnosed with a terminal illness, sum will be paid	Optional		Compare	loading Fetching your data...
Scottish Widows Critical Illness with Life Cover		18-64	£2,000 to £2m	Minimum 5 years	If you become critically ill, terminally ill or die	Yes	Go to site	Compare	loading Fetching your data...

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Pros

• Automatic critical illness cover for children. With other insurers you often have to pay extra for this
• 5-star Defaqto ratings for its critical illness and term life policies in 2019

Cons

• Other insurers’ critical illness policies will cover you for more conditions than Scottish Widows
• As with most life insurance policies, if you stop paying your premiums, you won’t get any money back and your cover is likely to stop
• Lifetime Cover policy was only rated 3-stars by Defaqto in 2019

Scottish Widows life insurance exclusions

Like all insurers, Scottish Widows will have a set of reasons it won’t pay out for. Check your policy document to confirm your potential exclusions, but here are some key ones:

• Failing to answer questions honestly and accurately when signing up could invalidate your cover
• Terminal illnesses where you’re expected to live longer than 12 months
• If you stop paying your premiums

What’s the claims process for Scottish Widows’ life insurance?

You can claim by calling 0800 849 6089. You will need relevant information such as the policy number, the name of the person who died and the cause of death.

Frequently asked questions

• How much does Scottish Widows life insurance cost?

  There’s no easy answer here. It depends. The type of policy you choose and the level of cover will play a big part. A term life deal may well be cheaper than a whole life one, for instance.

  Your personal situation will also affect your premiums. Your age, your health, your family’s medical history and your lifestyle choices (whether you smoke) will impact your costs.

  One easy way to keep costs down is by getting quotes from several providers. This way you can compare and contrast, seeing which offers you the cover you need for the cheapest price.

• Can I make changes to my Scottish Widows policy?

  Yes, this should be fine to do. Simply call Scottish Widows and ask if you can add protection, or increase or reduce your cover – if you move into a new home or your children move out, for example. You should also tell it about any lifestyle changes, such as quitting smoking. This might lower your premiums.

• Is the lump sum payment taxable?

  Life insurance payments are currently free from income and capital gains tax for UK residents, but may be subject to inheritance tax, depending on the value of your estate. It’s also worth noting that tax rules could change in the future, which might affect the tax implications of your pay out.

• What if I can't afford to pay my premiums?

  If you stop paying your premiums Scottish Widows will suspend or even cancel your cover. So it’s a good idea to only take out a policy you can afford.