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.
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.
There are various benefits and features to RBS’ life insurance policies that are useful to know when making a decision.
|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.|
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.
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:
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.
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:
Note that this quote doesn’t take into account the extra cost of Critical 3.
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.