About Scottish Widows Life Insurance

Don't let the name fool you, the Scottish Widows Life Insurance Company insures all people from all walks of life and all nationalities. Their life insurance policy is designed to insure that the policy holders dependents are financially provided for if the insured passes away or is diagnosed with a life-threatening illness. Depending on a persons individual circumstances, a policy could be written to have the benefits be level, decrease or increase as time goes by.

The Scottish Widows Life Insurance Company believes that everyone should be insured, no matter if they are married and have a family of children or a single individual, because everyone's life matters to someone and what they leave behind is important. With the money left behind from an insurance policy, an individual's loved ones or friends could pay off the mortgage and then have some spending money as a way of remembering the deceased person.

Life insurance coverage from the Scottish Widows Life Insurance Company is called Life Cover and works when a policy holder pays their premium every month for the period of time the insured has chosen, this is known as a term life insurance policy. The benefit amount is also known as the cash sum or pay out amount and this is what an individuals beneficiaries will receive when a policy holder passes away.

Typically, these regular policies have no cash-in values which means the policy holder can not turn in the policy for cash, the only way to receive the cash is for a death to occur and then there will be a pay out to the insurers beneficiary.

The Scottish Widows Life Insurance Company also offers their policy holders a mortgage free cover that many people could qualify depending on their circumstances and the coverage would help pay for a mortgage if death or a terminal illness was diagnosed.

With decreasing benefit life insurance coverage, a policy holder typically sets the benefit amount to match their mortgage so they can repay the mortgage loan. The life insurance company then decreases the benefit amount each month to be in line with the amount outstanding under a standard repayment mortgage plan.

An increasing benefits life insurance policy works a little differently. A policy holder could choose to increase their yearly benefits amount with the Retail Price Index – RPI which could be a minimum of 2 percent and up to a maximum of 10 percent. If a policy holder chooses this type of life insurance coverage, their premiums will automatically increase if the insured choose a benefit amount to be paid as a single lump sum cash amount or if they choose monthly benefit amount, their premiums will increase automatically with the RPI.

Terminal illness policies pay out at the most 12 months before a person's life is expected to end. This will give them ample time to put their affairs in order and spend time with their loved ones without worry of a financial hardship on those left behind.

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