Scottish Widows Life Insurance Review

Although it is now part of Lloyds Banking Group, Scottish Widows traces its history back to the Napoleonic wars. At the 2021 Financial Services Adviser Awards, the company was awarded 5 stars for its life insurance and pension products.

Find out whether Scottish Widows was independently rated as one of the UK's top life insurance companies this year.

In this in-depth review article, we look at:

1. The history of Scottish Widows
2. What life insurance policies does Scottish Widows offer?
3. How much does life insurance from Scottish Widows cost at different ages?
4. What do you need to know about taking out life insurance with Scottish Widows?
5. What do customers say about Scottish Widows life insurance?
6. The pros and cons of Scottish Widows life insurance
7. Claiming from Scottish Widows

We have also reviewed Scottish Widows Critical Illness Cover.

The history of Scottish Widows

Scottish Widows was founded in 1815 to protect the assets of widows and other female relatives of soldiers in the Napoleonic wars. It demutualised in 2000 and joined the Lloyds Banking Group in 2009. Today, Scottish Widows has approximately 6 million customers.

What life insurance policies does Scottish Widows offer?

Scottish Widows offers two types of life insurance policy – term life insurance and whole of life insurance.

• Term life insurance is designed to pay out a lump sum if you die during the term of the policy. The policy term can be from 5 to 40 years.
• Whole of life insurance is a type of life insurance that covers you for your entire life. The policy pays out a lump sum when you die, no matter when that is.

How much does life insurance from Scottish Widows cost at different ages?

The cost of Scottish Widows life insurance depends on a number of factors, including your age, health, lifestyle, and the amount of cover you need.

To give you an idea of how much life insurance from Scottish Widows might cost, we’ve put together some sample quotes for a 35-year-old non-smoker with a level of cover of £500,000 over a term of 20 years.

Here’s how much Scottish Widows life insurance would cost at different ages:

• 35 years old – £13.46 per month
• 45 years old – £20.24 per month
• 55 years old – £33.60 per month

(Quotes are correct at the time of rating, but don't forget to get your own.)

What do you need to know about taking out life insurance with Scottish Widows?

When you take out life insurance with Scottish Widows, you’ll need to answer some questions about your health, lifestyle, and employment.

You’ll also need to decide how much cover you need and how long you need the policy for.

What do customers say about Scottish Widows life insurance?

The latest independent customer satisfaction survey from Defaqto gives Scottish Widows 5 stars for both its term life insurance and whole of life insurance policies.

The pros and cons of Scottish Widows life insurance

Pros:

• Scottish Widows is a well-established life insurance provider with a long history
• Offers both term life insurance and whole of life insurance
• Has a 5-star rating from independent financial research company Defaqto

Cons:

• The cost of life insurance from Scottish Widows increases with age

Claiming from Scottish Widows

Between 2019 and 2021, Scottish Widows consistently paid out on more than 99% of life insurance claims.

That means it is above-average for the UK life insurance industry, in terms of the proportion of claims that are paid out.