Insurance is one of the last things consumers want to think about. When the time comes for it to pay its part, it’s important that customers have the right product on their side. Furthermore, they also want to make sure that they have their product with an institution they can trust. When disaster strikes or an emergency takes place, the last thing anyone who paid their insurances religiously wants is for the insurer to refute the claim. Customers who sign up with Royal Bank of Scotland Insurance have a variety of products to choose from. With this review, we have a look to see whether these products make the mark.
About Royal Bank of Scotland
Founded in the 1700s, Royal Bank of Scotland (RBS) has always had the upper hand when it comes to product innovation. Considered a bank of firsts, they were instrumental in the development of overdraft facilities and full-service online banking. Also, RBS was the first bank to offer homeowner loans to customers in the UK.
It’s this go-getter attitude that allows the bank to weather the storms it faces today. It faced tough times during the economic crash of 2008 and the tough times continued thereafter. Bad press and critique from customers and staff alike have seen the bank lose favor in the market. The bank has to endure tough reviews and faces low staff morale.
Currently, the bank is looking to increase their status in the market once again. Also, with the rocky financial outlook, part of the journey is to bump up profits without having to cut further jobs. This in an effort to once again staff morale.
We recently did a full review of Royal Bank of Scotland. Read it here.
Tips for Purchasing Good Insurance Products
There are a number of options out there, however, picking the right product is easy when customers know what o look for.
Understand the Terminology
The faster consumers stat understanding the terminology in insurances, the faster they will be able to pick a product that will suit their lifestyle. For instance, customers will know what the difference is between a comprehensive or a standard plan.
Check for Exclusions Immediately
This is always in the policy contract and will detail the events that will cause the insurance not to pay out. Furthermore, it is supposed to be discussed with the client upfront, however, very rarely gets done. This is particularly important for cover such as life cover or critical illness. Non-disclosure is one of the biggest reasons insurances companies decline claims.
Ensure that the Company has a Good Reputation
There are a number of companies that simply just pop up and offer the best rates. The best rates don’t always mean the best products and a little bit of research is required to ensure a good fit. If there is no claims history for a company, customers may wish to steer clear as there is no way to determine what their ratios are and how they assess the viability of claims.
Royal Bank of Scotland Insurance Product Offerings
With this product, customers have the opportunity to fix their home insurance products for three years.
Essentials Contents Insurance
This is a contents insurance that is specifically designed for students and tenants. Furthermore, this cover does not include building insurance at all.
- Customers receive cover of up to £14,000.
- Furthermore, they enjoy new for old replacement of their goods.
- There is an alternative accommodation cover aspect as well, which is up to 20% of contents sum insured.
- Customers benefit from interest-free monthly payments. Also, customers may apply for credit facilities which are subject to eligibility and credit agreements.
- Finally, the insurance includes the optional addition of family legal protection.
Standard Home Insurances
This is a flexible and popular product that is easily adjusted to the customer’s needs. Also, it includes a buildings insurance blanket cover of up to £1 million.
- Customers enjoy £50,000 contents cover insurance.
- The policy includes new for old replacement of their goods.
- Furthermore, there is an alternative accommodation cover as well. The amount is up to £25,000 with Buildings cover and up to £15,000 with Contents cover.
- Customers enjoy interest-free monthly payments on credit facilities. These are subject to eligibility and credit agreement.
- This policy also includes accidental damage to home entertainment equipment, including TVs.
- Also, customers enjoy family legal protection as an optional extra for up to £100,000.
- Finally, customers enjoy an optional extra for personal possessions taken outside their home, such as cameras, etc. There is a single item limit of £2,000, except bicycles.
Elite Home Insurance
This insurance policy includes all the benefits of the standard policy but with higher benefits.
- Customers enjoy unlimited building cover.
- Contents insurance increases to £100,000.
- Alternative accommodation cover increases to up to £50,000 for Buildings cover and up to £30,000 with Contents cover.
- Finally, the limit for personal possessions taken outside the home is increased to £4,000 per item, except bicycles.
This is the ideal cover for those who wish to protect their loved ones in the event of their death.
This is a level term cover that provides an income for the family in the event of death. Furthermore, the amount of cover remains the same throughout the term of the plan. Also, the cover can also be used to cover borrowing.
This is a decreasing term cover that is just in place to cover the money owed on a mortgage or loan. Furthermore, the cover reduces over the term of the plan in line with what is owed. Finally, customers who have a joint mortgage can take out a joint life cover.
To look at a range of mortgage options from Royal Bank of Scotland, read here.
Customers can apply for a waiver of premium, which means that the policy premiums are paid when the customer is ill or injured.
Indexation is also available and allows the policy sum insured to keep pace with the cost of living. This is only available on level term cover.
Critical Illness Cover
This cover pays out when customers are diagnosed with any of the specified illnesses that meet the definitions during the term. Furthermore, customers are free to use the money as they see fit. Also, the policy covers over 45 major illnesses or conditions. Finally, customers choose a term from 1 to 40 years, however, the cover has to stop when customers reach the age of 76.
Over 50s Life Cover
This cover is specifically designed for those who wish to leave a legacy for their children or grandchildren. Furthermore, the cover includes guaranteed acceptance for those between the ages of 50 and 80.
- The policy enjoys guaranteed payouts and guaranteed premiums.
- Also, the policy is affordable and customers are not required to complete medical questionnaires or go for examinations.
- Finally, the policy has no cash value which means that the policy will simply lapse if payments are not maintained.
What We Like About Royal Bank of Scotland Insurance
The bank offers home insurance and life insurance, which makes it useful for especially those who have mortgages with RBS. This means that they can have all their products in-house and not have to go to other institutions for cover.
Furthermore, the cover options on the home front provide various levels to cover the different situations customers may face. For instance, there is a product specially designed for those who don’t own the property but still need to ensure their goods. These include tenants and students.
Also, the life cover options are affordable and easily accessible. RBS also has a special product for those who don’t necessarily want to cover their debts or protect their loved ones but want to provide a legacy for their grandchildren or children instead.
Finally, the application process is simple and easy to understand. It also encourages customers to make full disclosures.
What We Don’t like About Royal Bank of Scotland Insurance
Customers still have to beyond the realms of RBS to satisfy all their insurance needs. These include travel insurance and car insurance. Car insurance was provided by RBS before and was discontinued. This could see RBS lose clients to competitors. Also, on the life insurance front, there is a whole division which could result in more clients, and that is the disability and income protection segment. These are very popular and in high demand.
See how they compare to Deutsche Bank here.
Critical Reviews Rating Royal Bank of Scotland Insurance – 9 of 10
The products that RBS have on books are ideal and meet customer needs without a hiccup. RBS is also known as one of the top providers of home insurance in the UK, which makes them quite the authority on the product. With this in mind, there is no reason why customers shouldn’t request a quote and see how they compare to the rest of the market.
The only detractor from the perfect core here is that customers would still have to look elsewhere for insurance needs. This means that they have to approach other financial institutions, which could result in loss of business for the bank.