Scottish Provident reduces life insurance rates

Scottish Provident has today (June 7th) cut rates on its Self Assurance annual insurance policy.

Scottish Provident has today (June 7th) announced a restructuring of its life policy insurance rates.

Most single insurance packages with the lender have been reduced in price as of today as it seeks to offer its customers more financially appealing deals in the wake of the recession.

Meanwhile, Scottish Provident also revealed that it paid out in 97 per cent of all life cover claims last year at a total cost of around £34 million.

The lender provides annual insurance cover under its Self Assurance plan, which also offers critical illness, income protection and unemployment insurance. The package then pays out on claims either as a lump sum or in monthly instalments in order to provide the best possible support for the holder or their family.

For example, under the new rate reductions, a 25-year-old female smoker in a 25-year policy of a lump sum of £500,000 would now pay 17.7 per cent less per month than she would have previously.

Susan Barclay, head of marketing at the lender, said: "Today's re-price announcement shows Scottish Provident is committed to providing our customers with the best possible deals in the market."

By Joe Letts