A life cover buy-back option is an optional feature on some life and critical illness policies that lets you start a new life policy after a critical illness claim has been paid, without new health questions. Scottish Widows calls its version the Life Buyback Option, and its time limits and conditions are set out below.

Whether a given policy carries a buy-back can be checked by an FCA-authorised broker; the form on this page arranges for one to ring you, without charge.

What does a buy-back option do after a critical illness claim?

A policy that combines life and critical illness cover normally pays once (see what life and critical illness cover is). A buy-back option addresses what comes next. Scottish Widows' customer policy summary (61041 01/26), published on its adviser website, describes it like this: "This feature allows you to ‘buy back’ your life cover after we’ve paid your critical illness claim."

At Scottish Widows it is something you pick on a particular kind of policy: "You can choose to have the Life Buyback option on a Life with Critical Illness Cover policy." The conditions in this guide are Scottish Widows' and should not be read across to any other insurer's policy; our guide to critical illness cover covers what the claim side pays for.

What conditions does Scottish Widows put on its Life Buyback Option?

The policy provisions (edition SWP – PERSONAL LCIC (2025A), also on the adviser website) say the option "only applies if the schedule states that a ‘Life Buyback Option’ applies". On top of that, these conditions are listed:

  • Chosen at the start. The summary says you "can only choose this at the start of the policy – you can’t add it later on."
  • Extra cost. It is charged for: "There is an extra cost for this which you can see on your quote."
  • A 90-day window. The provisions require the request "within 90 days from the date we pay the claim"; the summary words it as within three months of the claim.
  • A twelve-month wait. "The new policy will start 12 months after the date we pay the claim."
  • Premiums up to date. All premium payments due before the claim acceptance date must have been paid.
  • UK residence. The person must habitually reside in the United Kingdom when they select the option.

The new policy is life cover only: "Critical Illness cover will not apply to the new policy." Its sum assured is to equal the claim amount of the original policy, and it keeps the same basis (level, increasing or decreasing). Its expiry date is to be as close as possible to the original policy's, though never later and subject to the then minimum term. If the Scottish Widows Protect range is no longer available, or the policies then on offer have different features, Scottish Widows will offer the policy from its range at that time whose features come closest to the original.

Scottish Widows' worked example has Jack, on level life and critical illness cover of £60,000, claiming for liver failure and asking for life cover a month after the claim is paid; his new policy has level life cover of £60,000. On a joint policy, the product page says the option can apply to one or both people covered.

Does a buy-back mean no more medical questions, and what does it cost?

On health, the provisions are clear: "You won’t need to tell us about any change in the state of health of the buyback person since the start date." The summary says there will be no more medical questions.

On price, the provisions say the new premium allows for Scottish Widows' rates at the start date of the original policy, the person's age and smoker status when they select the option, and any additional premium or exclusion that applied to them under the original policy. The summary also says the cost is based on the rate at the start of the original policy, but the adviser product page says the new premium will be at the rates "as at the date the claim is settled". The documents word the pricing differently, so the wording that applies to your own schedule is worth confirming; the broker you speak to after the call-back can read it with you, and there is no charge.

The extra cost of the option itself is shown on the quote, as noted above. What moves the price of life and critical illness cover in general is in critical illness insurance cost.

Is a buy-back the same as joint life reinstatement or replacement cover?

No. A buy-back is for the person who made the critical illness claim. Scottish Widows' provisions point a surviving partner to a separate option: "If there are two persons covered and you’d like replacement cover for the person who didn’t have a critical illness, you may be able to use the option in Appendix B1." Royal London's Personal Menu Plan has a partner option of its own, Joint Life Reinstatement (Plan details, July 2025). It can be used after a death, terminal illness, critical illness or total permanent disability claim has been paid for one person on a joint policy, and it gives new life or critical illness cover only to the person who was not the cause of the claim, so it is not a way for the claimant to buy cover back. The plan says "You can only reinstate your cover once."

How joint cover works generally is in joint life insurance. Raising cover after a life event without fresh health questions is a different feature again, a guaranteed insurability option; see increasing term life cover. Combined and additional critical illness cover are the other structures to compare.

What to ask before relying on a buy-back

If you are comparing policies, these are the questions the Scottish Widows terms raise, and they are worth asking of any policy sold with a buy-back:

  • Does the quote say the option applies, and what does it add to the premium?
  • What is the deadline for asking after a claim is paid, and when does the new policy start?
  • Does the new cover match the original sum assured and term, or something less?
  • What happens to a loading or exclusion already on the original policy?
  • Which claims count, and how are they paid? When critical illness cover pays out covers how claims are assessed.

The twelve-month gap deserves a particular question, since the new policy starts a year after payment; ask what, if anything, covers that time. Anyone who wants buy-back policies looked at alongside the price can ask for a call from a broker through this page's form; it costs nothing.

Frequently asked questions

Is a buy-back included in all combined life and critical illness plans?

No. Scottish Widows makes it an option you choose at the start, at extra cost, so a policy has one only if its schedule says so. How the main insurers build their combined plans is set out in our provider comparison; if a quote does not mention a buy-back, ask whether the policy offers one.

Can you add a buy-back option after the policy starts?

Not on Scottish Widows' policy: its summary says it cannot be added later. For another insurer, check its own terms.

Does my health since the policy began affect a buy-back?

Under Scottish Widows' terms you do not need to report changes in health since the policy started. The new premium still allows for your age and smoker status at the time, and any loading or exclusion from the original policy applies.

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