"Integration of this product into the digitised Scottish Widows Protect platform should enhance the overall client experience."
- Jo Miller, Co-Chair of the IPTF
Analysed by YouGov, Scottish Widows’ latest research found that 42% of adults worry that their household wouldn’t cope if they were unable to work due to ill-health or injury. 29% of surveyed women said they couldn’t afford protection compared to 23% of men; over a quarter (29%) of women said they would expect to rely on a partner’s income if they couldn't work.
In response, Scottish Widows has today launched its new flexible Income Protection (IP) product to help bridge the IP gap. This product has been designed to be simple for both new & experienced advisers.
Scottish Widows’ IP policy includes fracture & hospitalisation benefits as standard with no extra charge, rehabilitation/proportionate benefit as a top-up payment to help customers return to the workplace, and partnership benefits such as ‘Clinic in a Pocket’ (included in cover) to access GP services 24/7 and receive GP sick notes, as well as dedicated personal nurse services via RedArc.
Customers will receive immediate income payment whilst their claim is being assessed, provided a GP note is supplied and once the deferred period has passed and Scottish Widows won’t decline an IP application for mental health without an underwriting review conducted by a real person, rather than AI; the provider will also ask the customer if they’re doing anything to improve their health so it can provide better underwriting rates.
Furthermore, Scottish Widows is offering a price lock promise which guarantees the quote for up to twelve months, subject to underwriting terms being imposed. If a customer’s earnings have reduced, as long as their monthly claim payment is more than £1.5k, Scottish Widows won’t pay them less than this.
Scottish Widows’ IP launch adds to the suite of products available via its recently digitised Protect platform (and via UnderwriteMe’s Protection Platform); the product will be available on other protection portals in the coming weeks.
To align with customers’ changing needs, they will be able to amend conditions through the life of their policy - including the policy term, deferred period, and sum assured. Scottish Widows’ offering also offers a risk review if health improves.
“Life doesn’t always go in a straight line and an unexpected adverse health event can have a significant impact on our ability to remain financially stable. This is where products like IP can come to the rescue and have a meaningful impact in reducing income ‘troughs’ if you’re unable to work due to illness or disability. Launching IP is part of our effort to help customers feel prepared, no matter what life throws at them,” explained Rose St Louis, Protection Director at Scottish Widows.
She said: “Our research shows women are less likely to have protection, and we want to be part of the solution towards closing the gender protection gap whilst also making it easy for established protection writers, as well as those new to protection, to write this type of business.”
As part of this launch, Scottish Widows has joined the Income Protection Taskforce (IPTF), formalising its long-term commitment to open dialogue on the importance of IP. Jo Miller, Co-Chair of the IPTF, said it welcomes Scottish Widows’ timely launch, “addressing a critical issue highlighted by its recent research: a significant gender protection gap.
“This will support the pressing need for accessible & affordable IP solutions. This product, designed for simplicity and flexibility, looks well-positioned to help address these disparities and support a broader demographic. Scottish Widows’ membership signifies its long-term commitment to collaborative efforts aimed at expanding IP coverage across the UK. We look forward to continued dialogue and initiatives that will drive greater awareness and adoption of IP solutions.”
