LIFE COVER OPTIONS
There are a number of things you’ll need to consider when you’re taking out life cover. Here are some of the options available to you. Your adviser will be able to help you decide what is most suitable to meet your protection needs.
| COVER OPTION | WHAT THIS MEANS | WHY YOU MIGHT NEED IT |
|---|---|---|
| Level cover | The amount of cover you choose and your premium will remain the same through the term of your policy. | The amount of cover won’t change over time so you and your family know how much will be received in the event of a claim. |
| Decreasing cover | The amount of cover you choose reduces each month, but your premium remains the same. | This is normally chosen to cover a repayment mortgage. |
| Increasing cover | The amount of cover you choose increases each year in line with the Retail Prices Index (RPI). Your premium will also increase for this type of cover. This means that your cover amount stays in line with inflation. | As this type of cover stays in line with inflation, it is designed to combat price rises, maintaining its real value throughout the term. |
| Premium Protection | This cover means you won’t have to pay your premiums if you’re unable to work because of an accident or disability. | This means that you won’t lose your cover if you can’t pay your premiums if you’re unable to work. |
| Trusts | A trust is a legal arrangement that lets the owner of something ‘gift’ ownership to someone else, this could include cash, property, shares or a life insurance policy. | This means that you can make sure that the money from your policy goes to the people that you choose. |
You can find out more about life cover from Scottish Widows in our policy summary. (PDF, 2MB)
