Scottish Provident Life Insurance Review 2025
Scottish Provident is part of the Royal London Group.
Pegasus is a whole-of-life insurance plan offered by Scottish Provident.
Scottish Provident is part of the Royal London Group.
Pegasus is a whole-of-life insurance plan offered by Scottish Provident.
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Scottish Provident is part of the Royal London Group. Founded in 1837, the company was acquired by Abbey Group in 2000. Abbey Group was subsequently bought by Bank Santander in 2004. Royal London Group then acquired Scottish Provident in 2008.
Scottish Provident is a leading insurance provider in the UK. Moreover, it is recognized as a market leader in critical illness policies. The company offers two insurance plans for its clients: Pegasus and Self-Assurance.
Scottish Provident is a leading provider of life, critical illness, income protection, and unemployment cover. They have received numerous awards within the protection industry.
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Pegasus is a whole-of-life insurance plan offered by Scottish Provident. It is a leading plan in the UK insurance market. The plan is structured to pay out a cash lump sum if a claim is accepted. Cover options include death, critical illness, and disability.
Furthermore, Scottish Provident allows customers to choose their desired benefits. The options are life cover or critical illness cover. Life cover functions as a standard whole-of-life insurance policy, while critical illness cover provides financial protection upon the diagnosis of a terminal illness. Customers can choose both benefits together.
Moreover, additional benefits are included. Firstly, free cover is provided while the application is being processed. Additionally, if critical illness benefit is selected, children’s critical illness benefit is included at no extra cost. Retirement cover is also available, adjusting the cover amount to be more significant in the later years of the policy. Alongside these benefits, a lifeline service (offering help with tax, legal, and medical questions) is provided to clients.
Another option offered by Scottish Provident is the Self-Assurance plan. The primary aim of this plan is to provide protection from financial hardship caused by death or critical illness. The cover amount can be paid out as a lump sum or as monthly payments (instalment options are available for business plans). Various benefits can be included in the Self-Assurance plan, with the most popular being life cover, critical illness cover, income protection, and unemployment cover.
We compare plans from the leading life insurance providers
Life cover (also known as death benefit) provides financial protection to dependents if the insured person dies or is diagnosed with a terminal illness (meeting Scottish Provident’s definition). It is a fundamental choice for Scottish Provident clients. However, as life cover only protects against death, selecting only this benefit may not be comprehensive. Critical illness cover is often chosen alongside life cover, offering broader protection by paying out in the event of critical illness, terminal illness, or disability.
Another popular choice among Scottish Provident clients is income protection benefit, also known as disability income protection. The main purpose of this option is to provide insurance if a person becomes unable to perform their work tasks due to disability, sickness, or accident. Unemployment benefit is another available option with a similar purpose to income protection, replacing part of monthly income. However, this benefit specifically insures against unemployment.
Scottish Provident also offers flexibility in choosing various contract conditions, such as the policy term or the amount of cover. Firstly, policies can be chosen to last from 5 to 40 years. However, it’s important to note that life cover and critical illness cover can only extend up to the age of 85, and income protection or disability benefits up to the age of 65.
Furthermore, customers can choose between a fixed term or a renewable term policy. With a fixed term, the insurance policy conditions remain constant throughout the contract duration. With a renewable term, the contract conditions are reviewed every 5 or 10 years. It is important to remember that premiums are likely to increase as the person ages, and deteriorating medical conditions may make renegotiating the contract under favorable conditions challenging.
Another customizable aspect is how the benefit amount changes over the policy term. Three options are available: level, increasing, or decreasing benefits. Level benefit keeps the cover amount constant throughout the policy. Increasing benefit adjusts the cover amount annually based on the retail price index change (up to a maximum of 10% per year). Decreasing benefit reduces the cover amount over time, typically used to protect family members from financial hardship related to mortgages or other financial obligations.
