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ScotEq ends guarantees on stand-alone cover

Scottish Equitable Protect has stopped offering guaranteed premiums on stand-alone term and critical-illness policies.

The move follows the introduction of reviewable rates across its range of policies in January.

Guarantees will still be available on combined term and critical-illness policies but they will face an average increase of 20 per cent, with further gradual increases predicted.

Unlike other product providers which are raising critical-illness cover premiums across the board, ScotEq says it is taking more of a circumspect approach, with increases depending on the length of the policy and age of the applicant.

Instead, it is promoting its five-year reviewable rates, saying consumers could save money by taking this route.

Even though premiums will be reviewed, policies will not require further underwriting after the initial term expires.

ScotEq says a male aged 35 next birthday will now pay a guaranteed premium of £34.79 for combined term and critical-illness cover of £100,000 over a 20-year term. By opting for a five-year reviewable rate, the cost falls to £26.85 – a saving of 22 per cent.

Spokeswoman Lesley McPherson says: “We are still offering guarantees on life with critical-illness cover.

“We are no longer offering guarantees for stand-alone products. Five-year reviewable rates are the way forward for the medium to long term for critical illness.”

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