Scottish Widows is one of a number of insurance companies to increase the cost of life insurance and critical illness cover by around 4.5%.
Until the start of September, Scottish Widows minimum premium was £4.50. It has now increased to £6.00. However, the maximum cover has now increased from £1m to £5m.
In defence of the price rises, Scottish Widows said, "This is our first increase in critical illness rates since 1998 and the first increase in life cover since 2000".
Our View
Whilst Scottish Widows have cited the reason for the increases as not being able to get the re-insurance rates to maintain premiums, there could be other reasons.
Scottish Widows is generally quite expensive when it comes to comparisons on life and critical illness cover. However, due to their vast presence on the High Street and elsewhere, business still keeps flooding in from the unsuspecting public.
We believe this could be an 'increasing profits' move as many people buy from them without comparing the costs.
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