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Scot Prov launches simplified whole-of-life plan

Scottish Provident has today launched a new simplified whole-of-life product that offers life cover only and has no investment element.

The new Pegasus plan, which replaces its predecessor, provides a choice of guaranteed and reviewable premiums and can be used for family or business protection. It will be priced on gender neutral rates.

The old unit-linked Pegasus plan offered customers a choice of three funds in which to invest part of the monthly premium. The idea behind the investment element was to keep the premiums consistent when it was time for them to be reviewed. Whether the premiums changed or not depended on how the chosen fund performed.

Scottish Provident senior product development manager Jennifer Gilchrist says: “Our new Pegasus plan complies with unisex pricing as we approach the changes to the EU Gender Directive. We have also removed the investment element which will allow ICOB-registered advisers, as well as investment advisers, to recommend it.

“As the emphasis on providing holistic financial planning continues to gain momentum, the focus on multi-usage whole-of-life will grow. Customers also have the reassurance of our strong claims history that paid out over £15m last year.”

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Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Whilst having another provider offer non-investment based Whole of life plans would generally be a good thing for us ICOB advisors I don’t see how this proposition adds much to the market.

    Until a company decides to take on PruProtect in regards to their pricing strategy then they have market pretty much sown up in my eyes, unless there are other factors involved such as underwriting issues.

    I also fail to see the logic behind Scottish Provident’s reviewable premium being priced so cheaply that it is obviously not sustainable in the long term. Much of the disdain towards unit linked plans is due to the substantial premium increases which can be experienced at review points. Based on Scot Prov’s own Product Guide stating “You should expect your premium to increase significantly on review” this plan is doing little to alter that when taken out on a reviewable basis.

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