The beneficiary nomination will be available on new personal single-own-life or life-with-critical-illness policies, and Scottish Widows said this would mean beneficiaries could receive a payout without waiting for probate.
Policyholders can nominate up to five beneficiaries during the application process, and each nomination can be added easily without signatures or separate trust forms. The beneficiaries must be in place before the policy goes on risk.
For applications with multiple eligible covers, advisers can choose different beneficiaries for each cover or apply the same nominations across all.
The beneficiary nomination allows the policyholder to update their chosen beneficiaries at any time without additional approval or paperwork involving trustees. Scottish Widows said this made it simple and flexible, which could suit clients whose needs change.
Paul Jenkin, head of protection change at Scottish Widows, said: “Beneficiary nomination is a practical tool that helps advisers support clients and their beneficiaries when it matters most. It helps reduce delays and makes it easier for life cover to be paid as intended.
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“Advisers can use it with confidence for straightforward needs, while trusts remain an option where more control is required. Overall, it gives advisers more flexibility to put the right protection in place at the right time.”
Ruth Gilbert, partner at Insuring Change, added: “I’m delighted to see Scottish Widows join the ranks of those insurers making it simpler for advisers to ensure life cover can be paid in the way their clients expect.”
Beneficiary nomination is available for advisers who apply directly with Scottish Widows or via the UnderwriteMe portal.
