- Home
- UK insurers
- Scottish Widows key person insurance
Scottish Widows key person insurance, how cover is capped
Scottish Widows key person insurance is capped by a clear rule: cover is set at a maximum based on either the person's remuneration or the loss of profits attributable to them (Scottish Widows ↗).
Here is what Scottish Widows publishes about sizing, loan cover and claims.
Every claim here is our summary of a named external source, linked beside it. Sources change: check the wording at the link before you rely on it.
Scottish Widows
Life, critical illness, loan cover
- Life cover
- Up to 10× earnings (Scottish Widows ↗)
- Critical illness
- Typically up to 5× earnings (Scottish Widows ↗)
- Loan cover
- Full cover for up to 3 people (Scottish Widows ↗)
- Claims paid, 2024
- 98% of protection claims (Scottish Widows ↗)
Summarised from Scottish Widows's own documents. Check each at its link.
About Scottish Widows key person insurance
Scottish Widows was founded in Edinburgh in 1815 and is part of Lloyds Banking Group, following its demutualisation in 2000 (Scottish Widows ↗).
For key person cover, its underwriting FAQs set the rule that matters most: cover is set at a maximum based directly on either the person's remuneration or the loss of profits attributable to them (Scottish Widows ↗).
1815
Founded in Edinburgh
Scottish Widows is founded in Edinburgh.
2000
Demutualised
Scottish Widows demutualises.
Today
Part of Lloyds Banking Group
Following its demutualisation in 2000.
Scottish Widows key person cover options
Scottish Widows' key person calculator describes a commonly used formula: a multiple of the key person's earnings, lower for critical illness than for life cover (Scottish Widows ↗).
For business loan cover, Scottish Widows allows full cover for up to 3 directors, owners or key persons (Scottish Widows ↗).
Scottish Widows key person insurance cost
Scottish Widows does not publish key person premiums on the pages we checked, and this site publishes no prices.
What it does publish is what counts as remuneration, listed here (Scottish Widows ↗).
What Scottish Widows counts as remuneration
- Basic salary (Scottish Widows ↗)
- Regular bonuses (Scottish Widows ↗)
- Dividends (Scottish Widows ↗)
- Any other regular taxable income (Scottish Widows ↗)
- Averaged over two to three years where it varies (Scottish Widows ↗)
How to get Scottish Widows key person insurance
Scottish Widows publishes its key person underwriting rules on its adviser site (Scottish Widows ↗) and its business protection calculators on its protection tools site (Scottish Widows ↗).
Scottish Widows key person insurance is arranged through a financial adviser, who works out the amount against those rules.
Amount
Work out the cover
Remuneration, including dividends, or the profit the person brings in.
Adviser
Speak to an FCA-authorised adviser
Check the firm on the FCA Firm Checker first.
Evidence
Justify the amount
Cover is capped by remuneration or attributable lost profit.
Scottish Widows claims record
Scottish Widows reported paying 98% of protection claims in 2024, including 99.1% of life insurance and 91.8% of critical illness claims (Scottish Widows ↗).
The figures are for all its protection claims, not key person cover alone.
Before you buy, with any insurer
- Answer the application questions fully: the ABI names not disclosing existing medical conditions, and not meeting the policy definitions, as common reasons claims are declined (ABI ↗)
- Check the firm first: the FCA says to use its Firm Checker before you buy insurance (FCA ↗)
- The Firm Checker cannot confirm whether FSCS or Financial Ombudsman Service protection will apply (FCA ↗)
Compare your key person insurance options
Each page below sets out what one insurer publishes about its own key person cover, with a source beside every figure.
We do not rate or rank insurers.
The comparison puts the published terms side by side.
- Life, or life and critical illness
Aviva
Aviva key person insurance → - Life, critical illness, income protection
Legal & General
Legal & General key person insurance → - Life, critical illness, income protection
Royal London
Royal London key person insurance → - Life, critical illness, or both
Zurich
Zurich key person insurance → - Life, optional critical illness
LV=
LV= key person insurance → - Through financial advisers
Vitality
Vitality key person insurance → - Now with Aviva
AIG Life
AIG Life key person insurance → - Closed to new individual cover
Canada Life
Canada Life key person insurance → - A personal accident variant
Hiscox
Hiscox key person insurance →
Check it for yourself
Every claim on this page is our summary of one of the documents listed here.
We last checked them against the live sources on 28 September 2026.
The documents are the authority, not this page.
Insurers and HMRC update them, so validate any figure or condition at its link before you rely on it.
- Scottish Widows: who we are ↗Founded 1815; part of Lloyds Banking Group
- Scottish Widows key person calculator ↗Earnings multiples for life and critical illness
- Scottish Widows underwriting FAQs ↗How cover is capped, remuneration, loan cover
- Scottish Widows: 2024 protection claims ↗Share of claims paid
- ABI: protection claims in 2024 ↗Common reasons claims are declined
- FCA Firm Checker ↗Check a firm before you buy
- FCA Firm Checker guidance ↗What the Firm Checker cannot confirm
Scottish Widows key person insurance, answered
Not financial advice. This page is general information. Before buying insurance, the FCA tells consumers to check the firm on its Firm Checker (FCA ↗). For free guidance, see MoneyHelper.