Scottish Widows, Halifax and Clerical Medical

Unit linked life insurance plans

If you have a life insurance plan with us which is investment based or unit linked, you can learn more by selecting your product below.

These types of plans provide either life cover (sometimes with critical illness cover) for the whole of your life, or income protection cover for a fixed term, along with an investment component.

You may have taken out your plan through an independent financial adviser or a branch of TSB, Lloyds Bank, Halifax or Bank of Scotland. 

In each section below we explain:

  • More about how the product works
  • Key risks to be aware of
  • Reviewing your plan
  • Your options

Find out how unit linked insurance can work in practice - explore our case studies to see how this type of insurance can work in real life.

Select your product

Scottish Widows Income Protection Plan

(formerly Black Horse Income Protection Plan)

Income Protection Plan

Scottish Widows Lifetime Security Plan

Lifetime Security Plan

Scottish Widows Living Cover Plan

Living Cover Plan

Former TSB Options Plan

Former TSB Options Plan

Scottish Widows Flexible Protection Plan

(formerly known as Bank of Scotland Flexible Protection Plan)

Flexible Protection Plan

Halifax Critical Illness Plan

Halifax Critical Illness Plan

Halifax Flexible for Life

Halifax Flexible for Life

Halifax Flexible Protection Plan

Flexible Protection Plan

Scottish Widows Lifetime Protection Plan

Lifetime Protection Plan

Clerical Medical Versatile Protection Plan

Versatile Protection Plan

It’s important to review your protection cover from time to time, especially as costs and personal circumstances can change.

Read our case studies

Through case studies, we can see how these products appear affordable at first, but often increase in cost in later years. The case studies are for illustrative purposes and are a helpful reminder of why it’s important to review your cover regularly – helping you stay ahead of increasing premiums and check your product still meets your needs and remains affordable.  

  •  

    Sarah took out a Scottish Widows Living Cover Plan at age 35, with £100,000 cover. She opted for Maximum Cover, meaning her monthly payments increased sharply as she got older. 

    Sarah’s premiums increased over the years

    • Age 35: £30 each month - Affordable entry-level premiums 
    • Age 50 - 55: £80 each month - Noticeable jump during mid-life 
    • Age 60 - 70: £270 each month - Significant rise and peak premiums.

    Outcome

    By age 70, Sarah was paying £270 each month, a substantial increase from her initial £30 each month when she was 35.  

    This reflects that most of her initial payments went towards paying for critical illness cover, with very little invested. That meant growth in the value of the policy was much less likely, and her premiums had to rise as she got older as the cost of cover increased. 

    What this shows

    Sarah’s case study highlights how premiums can increase over time: 

    • Early years are cost-effective. 
    • Mid-life brings moderate increases. 
    • Later years are very likely to have steep rises, making long-term affordability planning important. 

    Long-term planning is essential: Premiums can become significantly more expensive later in life. It’s important to review cover regularly and plan for future cost increases. 

    Sarah chose to accept the increasing premiums, but as an alternative she could have reduced her cover or cancelled her plan.  ​

  •  

    Jamal took out a Scottish Widows Lifetime Protection Plan at age 35, with £100,000 cover. He chose Standard Cover, meaning there was a risk his monthly premiums would need to increase in later years.

    Jamal’s premiums increased significantly in later life

    • Age 35: £40 each month - Fixed and predictable premiums for 30 years 
    • Age 65–70: £120 each month - Premiums increased significantly in later life.

    Outcome

    When he reached age 65, Jamal payments jumped to £120 per month, three times as much as his original premium.  

    Unlike Maximum Cover, more of Jamal’s premiums were invested, giving his policy greater potential for growth. And although the premiums were stable for 30 years, there was a sharp rise as Jamal reached age 65 and the increase in the cost of cover couldn’t be met by the investment growth.  

    What this shows

    Jamal’s case highlights how Standard Cover premiums could jump up over the years: 

    • Stable early premiums support long-term budgeting in the early years. 
    • Increases can be later and potentially more manageable. 
    • Greater potential investment growth due to lower cost of cover in early years. 

    Long-term planning is essential: Premiums can become significantly more expensive later in life. It’s important to review cover regularly and plan for future cost increases. 

    Jamal chose to maintain his cover despite the increase in premiums. However, he could have reduced his cover to manage affordability or cancelled his plan. 

Key takeaway:

Protection costs can increase over time. Regular reviews can help you stay informed, plan ahead, and decide whether your cover still suits your needs.