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RBS life insurance review 2022

The Royal Bank of Scotland (RBS), a subsidiary of the NatWest Group, is one of the largest retail and commercial banks in Scotland. Founded in 1727, the bank is one of the oldest financial establishments in the country.

It’s worth noting that all RBS life insurance products are offered via the bank by US finance and insurance group AIG. Your coverage and application will be handled entirely by the latter.

Life Insurance Options Offered by Royal Bank of Scotland

RBS life insurance

RBS has an array of life insurance policies to suit various needs.

RBS has an array of life insurance policies to suit various needs. Below, we take a look at the primary options:

Level Term: This is a life insurance option where your payout remains the same throughout the coverage period. As a result, it makes an excellent product for covering interest-only mortgages and leaving a large lump sum inheritance for loved ones. The premium in this policy also stays the same throughout.

Decreasing Term: Unlike the latter, the payout in a decreasing term policy reduces over time. This makes it an excellent option for covering payment mortgages or other types of debt that decrease over time. A benefit of this product is that the premium also lowers over time.

Increasing Insurance: This is an insurance option not offered by many companies. Your insurance amount rises in line with the Retail Prices Index, with a max cap of 10% per year.

Life Insurance with Critical 3: This option offers the bank’s regular life insurance cover in addition to the Critical 3 serious illness cover. This cover will ensure that you get a payout if you pass away, are diagnosed with a terminal illness and given less than 12 months to live, or if you’re diagnosed with one of the three critical illnesses – cancer, heart attack, or stroke.

Guaranteed Sixty-Plus Life Insurance: This is a guaranteed life insurance option for applicants between 60 and 80 years of age.

Features and Benefits of Royal Bank of Scotland Life Insurance.

There are various benefits and features to RBS’ life insurance policies that are useful to know when making a decision.

  • AIG Smart Health: All applicants taking out a life insurance policy through RBS will get access to AIG’s Smart Health app. It offers 24/7 access to a GP and a platform to manage your wellbeing.
  • Fixed monthly payments: Your premium remains the same unless you make changes or opt for the increasing insurance option.
  • Full coverage after two years for Guaranteed Sixty-Plus Life Insurance customers.
  • Mortgage Guarantee: This option comes with a decreasing term insurance policy. If the payout doesn’t fully cover your remaining mortgage cost at the point of making a claim, RBS will cover the outstanding amount.
  • Welcome Gifts: AIG and RBS often run various welcome gifts for taking out a new life insurance policy, such as a smartwatch or retail gift card.

Overview of Royal Bank of Scotland Key Policy Details.

Cover Options Level Term. Decreasing Term. Increasing Term.
Cover Period Between 3 to 70 years.
Critical Illness Cover Available through AIG’s Critical 3 add-on.
Maximum Applicant Age Life insurance: 86. Life Insurance with Critical 3: 75. Sixty-Plus: 80.
Minimum Entry Age 17.
Whole of Life Policy Not available.
Joint Life Policy Both single and joint life policies are available.

Can You Make Changes To Your Policy?

Once you’ve entered into your insurance contract, you can cancel it, reduce the amount of insurance and the length of the contract. You can’t, however, increase the amount or length. You can also change a joint life policy into a single policy or two separate policies.

Does Royal Bank of Scotland Offer Life Insurance for Over 50s?

RBS offers AIG’s Guaranteed Sixty-Plus Life Insurance policy for applicants between the ages of 60 and 80. The benefits of this policy include:

  • Guaranteed acceptance
  • Full coverage after two years
  • No medical examination required
  • Low cost, with premiums starting from as little as £5 per month

Royal Bank of Scotland Life Insurance Ratings.

Like many other insurance providers, RBS has been reviewed by independent rating companies that measure the value and quality of its products.

Fairer Finance: Awarded RBS a 2 star rating for its Guaranteed Sixty-Plus Life Insurance policy.

Defaqto: Awarded RBS a 3 star rating for its Life Insurance policy, a 3 star rating for its Life Insurance with Critical 3 policy, and a 4 star rating for its Guaranteed Sixty-Plus Life Insurance policy.

How Much Does Royal Bank of Scotland Life Insurance Cost?

Life insurance premiums vary and depend on your age, occupation, medical history, health condition, smoking status, and level of coverage. To get a better idea, here’s a quote from RBS:

  • A non-smoking 50-year old applicant looking for £150,000 coverage over 25 years will pay around £35 per month through a level term policy.
  • The same applicant looking for a decreasing term policy will pay around £22 per month.

Note that this quote doesn’t take into account the extra cost of Critical 3.

Is Royal Bank of Scotland Life Insurance Right for You?

Royal Bank of Scotland’s life insurance products come with an array of benefits and perks. Access to AIG’s Smart Health tool is a great way to keep on top of your health and wellbeing, whilst having 24/7 access to a GP is also helpful.

The bank offers some great flexibility on the maximum entry age, which at 86 is much higher than other insurance providers. Many set the cut-off point at between 64 and 70-years old. Perhaps the bank’s best policy is the Guaranteed Sixty-Plus Life Insurance policy, which is rated highly. The full coverage after two years certainly makes it a good value proposition, whilst choosing a joint life policy can also be helpful for couples.

One downside is that Critical 3 insurance doesn’t automatically offer child cover, which might be a deal-breaker if you need your children covered. Other companies offer this free of charge with their critical illness cover add-ons.