Scottish Widows Protect
Scottish Widows’ has returned to the intermediary protection insurance space with its Protect range, which offers life cover, with or without critical illness insurance. Term insurance (with a family income benefit option), relevant life cover (not with CI) and whole life cover are available.
The insurer has a well set out purpose-built digital platform, giving advisers access to a good range of tools to help them write protection business. Those tools include calculators for each product, and also protection needs, risk analyser and underwriting tools. The latter enables the adviser to get an indicative underwriting decision for some of the commonly disclosed illnesses and conditions. There is also a good section on trusts, including a useful 12 page trust overview document.
Our review of the term life with critical illness cover product shows a plan which offers level, increasing (in line with RPI between 2% and 10% a year) and decreasing (to protect a repayment mortgage with a selected interest rate between 0% and 18%) cover options. The minimum policy term is one year (or three years if decreasing term is chosen) and cover must stop by age 69.
Available from age 18 to 64 at outset (higher maximum ages apply for life cover only) the plan offers minimum and maximum sums insured of £100,000 up to £3 million (or £1.5 million with total and permanent disability cover, or up to £25 million for life cover only).The maximum family income benefit is £150,000 a year (with level or increasing cover only). Children are covered free for both life and CI cover.
Forty two critical illnesses are covered (including total and permanent disability - TPD) and there are also 12 additional conditions, which pay the lower of £25,000 and 25% of the sum insured. Terminal illness cover is included at no extra cost. The independent CI Expert reports that of the conditions covered, anoxia/hypoxia causing death of brain tissue due to inadequate blood supply and also carcinoma in situ of the endometrium treated by hysterectomy are unique to Scottish Widows.
A life cover buyback option is available and there is also a five year renewable cover option. Personal and business plans are available and premiums are guaranteed throughout the policy term.
The plan can include free accidental death cover up to 90 days pre-offer, together with mortgage cover (again up to 90 days), so giving greater peace of mind and protection during the underwriting process.
Support to customers is provided though RedArc, and this applies when a claim is made and also beyond too.
Comment: Many advisers have been waiting a long time for Scottish Widows to re-enter the IFA space. It has now done so, albeit much later than many had expected, and its new plans are not particularly innovative. That said, Scottish Widows is one of the strongest brands in the UK and the plans themselves look to offer a competitive range of benefits.
Interestingly, there appear to be minor differences between the IFA plans and those available through Lloyds bank branches.
The bottom line is a strong proposition and a welcome increase in choice for advisers too.
Plus points: A comprehensive range of new protection products for advisers to recommend: Good brand image; Digital platform is comprehensive and of practical value; Good support including for writing policies in trust.
Not so plus points: Some variations between IFA and in-branch plans; Not that innovative; Much delayed re-entry into the sector.
Website: http://www.scottishwidowsprotect.co.uk
Rating (max 10): Innovation: 7. Overall: 8. Gold
Tags: CI; Scottish Widows