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How to Structure Life Insurance to Pay a Tax-Free Business Dividend

As an expert UK broker, WeCovr reveals how company directors can use Relevant Life Insurance to provide their families with a huge, tax-free lump sum, paid for by their business—a strategy akin to a tax-free dividend.

WeCovr Editorial Team · experienced insurance advisers
Last updated Mar 17, 2026

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How to Structure Life Insurance to Pay a Tax-Free Business...

TL;DR

As an expert UK broker, WeCovr reveals how company directors can use Relevant Life Insurance to provide their families with a huge, tax-free lump sum, paid for by their business—a strategy akin to a tax-free dividend.

Key takeaways

  • A Relevant Life Policy is a business-paid life insurance that provides a tax-free benefit to an employee's family.
  • Premiums are typically an allowable business expense, reducing your company's Corporation Tax bill.
  • Unlike a salary increase, the premiums are not treated as a P11D benefit-in-kind for the director.
  • The payout is made via a trust, so it's free from Inheritance Tax and doesn't require probate.
  • This strategy is significantly more tax-efficient than funding personal life insurance from post-tax income.

Advanced broker strategies for using Relevant Life policies to maximize director wealth

As a company director, you are constantly seeking intelligent ways to enhance your financial position and protect your family's future. You understand the power of tax efficiency and strategic planning. But what if one of the most powerful tools for wealth protection has been hiding in plain sight?

Imagine providing your loved ones with a substantial, tax-free lump sum if you were to pass away, with the entire cost being tax-deductible for your business. This isn't a complex offshore scheme; it's a straightforward, HMRC-recognised protection product called a Relevant Life Policy (RLP).

When structured correctly by an expert broker, an RLP acts like a highly efficient, tax-free business dividend—a way to extract value from your company and channel it directly into your family's long-term security, bypassing multiple layers of tax.

At WeCovr, we specialise in helping company directors and business owners navigate these advanced strategies. This guide will demystify the Relevant Life Policy, showing you precisely how it works, the immense tax savings involved, and how to implement it to maximise your personal and business wealth.

What is a Relevant Life Policy? A Plain English Explanation

A Relevant Life Policy is a type of death-in-service benefit designed for individual employees. In simple terms:

  • It's a life insurance policy taken out and paid for by your limited company.
  • It's for one employee, such as a director or a key member of staff.
  • If the insured person dies while employed, the policy pays out a tax-free lump sum.
  • The payout goes directly to their family or nominated beneficiaries via a discretionary trust.

Crucially, it is not a benefit for the company itself. Its sole purpose is to provide financial security for the employee's dependents. This distinction is key to its favourable tax treatment.

Relevant Life Policies were introduced as part of the Finance Act 2004. They were designed to allow small businesses, which are often too small to set up a full Group Life 'death-in-service' scheme, to offer this valuable benefit to their key staff and directors.

The "Tax-Free Dividend": Unlocking the Financial Power of RLP

Why do we describe a Relevant Life Policy as being akin to a tax-free dividend? Because it allows you to use pre-tax company profits to fund a significant personal benefit, something that is normally very difficult to do.

Let's compare funding a £500,000 personal life insurance policy in two different ways:

  1. The Traditional Way: Paying from your post-tax personal income.
  2. The Smart Way: Using a Relevant Life Policy paid by your business.

To pay a £100 monthly premium personally, a higher-rate taxpayer director needs to extract that money from their company first. This involves several layers of tax.

Comparison: Relevant Life vs. Personal Life Insurance

This table illustrates the stark difference in cost for a director paying 40% income tax and their company paying 25% Corporation Tax.

FeatureRelevant Life Policy (Paid by Business)Personal Life Insurance (Paid from Net Income)
Gross Salary/Dividend Needed£0 (Paid from company's gross profit)~£198
Corporation Tax @ 25%N/A (Premium is an expense)£49.50
Income Tax @ 40%N/A£59.40
Employee's NIN/A(varies, but adds to cost)
Actual Cost to Director/Company£100 (potentially less after Corp Tax relief)~£198
P11D Benefit-in-kind?NoN/A
Premiums an allowable expense?Yes (subject to 'wholly & exclusively' rule)N/A
Payout Free of Inheritance Tax?Yes (paid via a trust)Yes (if written into trust)

As you can see, to get £100 into your personal bank account to pay a life insurance premium, your company might have to generate nearly double that amount in profit.

With a Relevant Life Policy:

  • The company pays the £100 premium directly.
  • This £100 is typically treated as an allowable business expense, reducing the company's Corporation Tax bill.
  • You, the director, pay no Income Tax or National Insurance on the premium. It is not a P11D benefit.

This triple-tax saving is why RLP is such a powerful tool. You are effectively using money that would have otherwise gone to HMRC to purchase comprehensive protection for your family.

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Key Features and Rules of a Relevant Life Policy

To qualify for this favourable tax treatment, a Relevant Life Policy must adhere to a strict set of rules set out by HMRC. Understanding these is vital.

  • Purpose: The policy must only provide a lump sum benefit on the death of the employee. It cannot have a surrender value or pay out on critical illness (though some insurers now offer a terminal illness element as standard).
  • Beneficiaries: The benefits must be paid to an individual or a charity, typically via a discretionary trust. The money cannot be paid back to the company.
  • Age Limit: Cover must typically cease by age 75.
  • Eligibility: The person covered must be an employee or director of the company paying the premiums. This includes salaried directors of their own limited companies. It is not suitable for sole traders or equity partners in a Partnership/LLP.
  • No Cash-in Value: These are pure protection policies. If the premiums stop, the cover ceases, and no money is returned.

How Much Cover Can I Have?

The amount of life cover available is typically a multiple of your total annual remuneration. This includes your salary, dividends, and any P11D benefits.

The multiples vary between insurers but are generally generous:

Age of EmployeeTypical Maximum Multiple of Remuneration
Up to 3925x
40 - 4920x
50+15x

Example: A 45-year-old director with a total remuneration package of £80,000 (£12,570 salary + £67,430 dividends) could potentially qualify for up to £1.6 million of cover (£80,000 x 20).

An expert broker at WeCovr can quickly assess your remuneration and find the insurer offering the most generous multiple for your circumstances, ensuring your family gets the maximum possible protection.

Real-Life Scenario: How Sarah, a Director, Maximised Her Wealth

Sarah is the 42-year-old director and sole shareholder of a successful marketing consultancy. She draws a salary of £12,570 and takes dividends of around £70,000 per year. She is married with two young children and a mortgage of £450,000.

The Problem: Sarah needed significant life insurance to clear the mortgage and provide for her family if she died. She was quoted £85 per month for a £750,000 personal Level Term Assurance policy.

To pay this £85 premium, she first had to take the money out of her company as a dividend. As a higher-rate taxpayer, this meant she needed to declare a larger dividend, pay Corporation Tax on the profit, and then personal Income Tax on the dividend itself. The true cost to her business was significantly more than £85.

The RLP Solution: Her accountant recommended she speak to a protection specialist. We analysed her situation and proposed a Relevant Life Policy.

  1. The Policy: We established a Relevant Life Policy for £750,000, paid for by her limited company. The premium was £82 per month.
  2. Tax Efficiency: Her company paid the £82 premium directly from its bank account. This was recorded as a business expense.
  3. Corporation Tax Relief: At the end of the year, her company's taxable profit was reduced by the total premiums paid (£984). This saved her company £246 in Corporation Tax (at 25%). The net cost to the business was therefore only £738 for the year.
  4. Personal Tax Savings: Sarah paid no Income Tax or National Insurance on this benefit. It did not appear on her P11D form.
  5. Trust Planning: The policy was immediately written into a discretionary trust, with her husband and children as potential beneficiaries.

The Outcome: If Sarah were to pass away, her family would receive a £750,000 lump sum. This payment would be made quickly, without waiting for probate, and would not be part of her estate for Inheritance Tax purposes.

By using an RLP, Sarah secured vital protection for her family at a fraction of the 'true cost' of a personal policy. She effectively turned a business expense into a cornerstone of her family's financial security—a legacy paid for with pre-tax profits.

Relevant Life vs. Group Life (Death in Service): Which is Right for My Business?

Many directors are familiar with 'Group Life' or 'death-in-service' schemes, which are common in larger companies. It's important to understand how RLP differs.

FeatureRelevant Life Policy (RLP)Group Life Scheme
Number of EmployeesOne single employee per policy.A whole group of employees (minimum often 3-5).
Ideal ForSmall businesses, directors, high-earning employees needing top-up cover.Businesses wanting to offer a blanket benefit to all or a class of staff.
FlexibilityHighly flexible. Cover levels and terms can be tailored to the individual.Less flexible. Often a set multiple of salary for all members (e.g., 4x salary).
PortabilityPolicy can sometimes be taken over personally if the employee leaves.Cover ceases immediately when the employee leaves the company.
UnderwritingFull medical underwriting for the individual.Often a 'Free Cover Limit' meaning no medicals needed up to a certain sum assured.
AdministrationVery simple. One policy, one direct debit.More complex. Requires managing a master policy and member data.

When is RLP the better choice?

  • You're a one-person limited company: RLP is the only way to get company-paid death-in-service benefits.
  • You're a very small business: If you have fewer than 3-5 employees, you may not qualify for a group scheme.
  • You need different cover levels: You want to provide a large amount of cover for yourself as a director, but a smaller, more affordable amount for other staff.
  • You're a high earner: If your group scheme's '4x salary' multiple isn't enough to cover your mortgage and family needs, an RLP can be used as a 'top-up' policy.

An expert adviser can help you decide whether a series of individual RLPs or a single Group Life scheme is the most cost-effective and appropriate solution for your business.

The Crucial Role of Trusts in Relevant Life Planning

One of the most powerful features of a Relevant Life Policy is its relationship with trusts. In fact, a Relevant Life Policy must be written into a trust from the outset to be valid.

This isn't an optional extra; it's a fundamental part of the structure. Here’s why it’s so important:

  1. Avoiding Inheritance Tax (IHT): When the policy is in a trust, the payout is made to the trust, not to your personal estate. This means the lump sum is not subject to the 40% Inheritance Tax charge that could apply if it were part of your estate. For a £1 million policy, this is a potential saving of £400,000 for your family.
  2. Speed of Payout: The trustees can make a claim and distribute the funds to your beneficiaries much faster than if the money had to go through probate. Probate can take many months, even years, leaving your family without access to funds when they need them most. A trust bypasses this delay entirely.
  3. Control and Flexibility: You appoint trustees (often a spouse, adult children, or a professional) and provide a letter of wishes guiding them on how you'd like the money distributed. A discretionary trust gives them the flexibility to make payments according to your family's needs at the time.
  4. Meeting HMRC Rules: The trust structure ensures the benefit is for your family, not the business, which is a core requirement for the policy to qualify as a non-taxable benefit.

Setting up the trust is a simple but critical step. Insurers provide standard trust forms, and our team at WeCovr will guide you through completing them correctly, ensuring your policy is structured for maximum tax efficiency and protection from day one.

Understanding Different Types of Life Insurance: A Note on Whole of Life Policies

While a Relevant Life Policy is a form of term insurance (it covers you for a specific period, e.g., until age 75), it's useful to understand how other plans, like Whole of Life insurance, operate. This is especially important as the term 'Whole of Life' can refer to very different types of products.

Modern, Pure Protection Whole of Life

In today's UK protection market, the vast majority of Whole of Life policies sold by advisers are pure protection plans with no cash-in or investment value.

  • How they work: You pay a fixed premium for your entire life, and the policy guarantees to pay out a lump sum whenever you die.
  • Key Feature: There is no cash-in value. If you stop paying your premiums at any point, the cover simply ends, and you get nothing back. This makes them simple, transparent, and more affordable.
  • Who they are for: These plans are perfectly suited for specific financial planning needs, such as:
    • Inheritance Tax (IHT) Planning: A Whole of Life policy written in trust can provide a guaranteed sum to pay the IHT bill on your estate.
    • Guaranteed Legacy: Ensuring a specific amount of money is left to children or grandchildren, regardless of when you pass away.

At WeCovr, we focus on comparing these straightforward, guaranteed pure protection plans from across the market, helping clients secure the cover they need for estate planning.

Older Investment-Linked Whole of Life Policies

You may have heard of older types of Whole of Life policies that worked very differently. These are rarely sold today due to their complexity and high costs.

  • How they worked: Part of your premium paid for the life insurance element, while the rest was invested in a fund, often a 'with-profits' or 'unit-linked' fund.
  • The Idea: The intention was that investment growth would help fund the rising cost of the life cover as you aged and potentially build a 'surrender value'.
  • The Problems:
    • Complexity & High Charges: They were opaque and expensive.
    • Performance Dependant: If the investments performed poorly, your premiums could be increased significantly, or your cover level could be reduced.
    • Low Surrender Values: Cashing them in early often resulted in getting back far less than you had paid in premiums, due to high initial charges.

It's vital to understand this distinction. The modern protection plans we arrange are clear, guaranteed, and designed for one purpose: to pay out when needed.

Expanding Protection: Executive Income Protection

If you're using a Relevant Life Policy to protect your family from the financial impact of your death, it's logical to also consider what would happen if a serious illness or injury meant you couldn't work.

This is where Executive Income Protection comes in. It's the business-paid equivalent of a personal Income Protection policy.

What is it? An insurance policy, paid for by your company, that provides a regular monthly income if the insured employee (e.g., you, the director) is unable to work due to illness or injury.

How does it work?

  • Your company pays the premiums, which are typically an allowable business expense.
  • You choose a level of income to protect (e.g., up to 80% of your remuneration).
  • You select a 'deferred period' – the time you must be off work before the payments start (e.g., 4, 13, 26, or 52 weeks).
  • If you are signed off work by a doctor for longer than the deferred period, the policy starts paying the benefit.
  • The payments are made to the company, which then distributes them to you, the employee, via PAYE.

Tax Treatment:

  • Premiums: Generally an allowable business expense for the company.
  • Benefit Payments: The income paid by the insurer to the company is treated as trading revenue. When the company pays this out to you, it's treated as salary and is subject to Income Tax and National Insurance.

While the benefit is taxed, this structure remains highly efficient. The company gets tax relief on the premiums and the salary it pays you while you're sick. This ensures you continue to receive an income, can pay your personal bills, and the business can even afford to hire a temporary replacement if needed.

For a company director, whose ability to work is the engine of the business, Executive Income Protection is arguably as important as life insurance. As a responsible broker, we are committed to providing our clients with a holistic view of their protection needs. We even provide complimentary access to our AI-powered calorie tracking app, CalorieHero, to support our clients' proactive health and wellness journeys.

Common Mistakes to Avoid with Relevant Life Policies

While RLPs are powerful, mistakes in setup or management can undermine their benefits. Here are common pitfalls we help our clients avoid:

  1. Forgetting the Trust: Failing to complete the trust documentation renders the entire tax-efficient structure invalid. The payout could fall into your estate and be liable for IHT. We ensure this is done correctly from day one.
  2. Incorrect Remuneration Calculation: Overstating your remuneration to get more cover can lead to HMRC challenging the 'wholly and exclusively' rule for the premiums. We help you accurately calculate your total package (salary, dividends, benefits) to justify the cover level.
  3. Choosing the Wrong Insurer: Insurers have different underwriting appetites, definitions of terminal illness, and multiples of remuneration. Using an independent broker like WeCovr ensures you are matched with the insurer best suited to your specific health and financial profile.
  4. Setting and Forgetting: Your protection needs change. You might take on a larger mortgage, have more children, or your income may increase. We recommend reviewing your cover every few years to ensure it still meets your family's needs and that you still qualify under the RLP rules.
  5. Confusing it with Key Person Insurance: RLP is for the employee's family. If you need insurance to protect the business from the financial impact of losing a director, you need Key Person Insurance. The two serve entirely different purposes.

By working with an FCA-regulated broking firm that understands these nuances, you can avoid these errors and ensure your policy delivers exactly what it promises.

Is a Relevant Life Policy a P11D benefit-in-kind?

No. Provided the policy is set up correctly according to HMRC's rules, the premiums paid by the business are not considered a taxable benefit-in-kind for the employee or director. You do not need to declare it on a P11D form, and you will not pay any extra income tax or National Insurance.

Can a sole trader get a Relevant Life Policy?

No, a Relevant Life Policy is specifically for employees of a company, including salaried directors of a limited company. A sole trader is not an employee of their business in the same legal sense. Sole traders should use a standard personal life insurance policy, which can be made more tax-efficient by placing it into a trust to avoid inheritance tax.

What happens if I close my limited company?

If you close your company, it can no longer pay the premiums. Most insurers offer a 'continuation option' which allows you, the individual, to take over the policy on a personal basis without further medical underwriting. The premiums would then be paid from your personal bank account. This is a valuable feature that prevents you from losing your cover.

Can I add Critical Illness Cover to a Relevant Life Policy?

No. To qualify for the special tax treatment, a Relevant Life Policy must be a pure life insurance plan that only pays out on death (or terminal illness). You cannot add critical illness cover to it. If you require critical illness cover, you should consider a separate personal policy or an Executive Income Protection plan for sickness cover.

Take the Next Step to Secure Your "Tax-Free Dividend"

Structuring your life insurance through your business is one of the most astute financial decisions a company director can make. It transforms a standard protection product into a highly tax-efficient tool for wealth extraction and family security.

However, navigating the rules and insurer options requires specialist expertise. The difference between a correctly structured policy and a flawed one can be hundreds of thousands of pounds in tax.

As expert, FCA-regulated protection brokers, WeCovr can guide you through this process. We will:

  • Assess your personal and business circumstances.
  • Calculate the maximum tax-efficient cover you are eligible for.
  • Compare policies from all major UK insurers to find the best terms and price.
  • Handle the application and ensure the crucial trust documentation is completed correctly.

Contact us today for a free, no-obligation consultation and quote. Let us show you how to unlock this powerful strategy and provide your family with the ultimate financial peace of mind, all paid for by your business.

Sources

  • HM Revenue & Customs (HMRC)
  • Financial Conduct Authority (FCA)
  • GOV.UK
  • Office for National Statistics (ONS)
  • Association of British Insurers (ABI)

Disclaimer: This is general guidance only and does not constitute formal tax or financial advice. Tax treatment depends on individual circumstances, policy terms, and HMRC interpretation, which cannot be guaranteed in advance. Whenever applicable, businesses and individuals should always consult a qualified accountant or tax adviser before arranging such policies.

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Why life insurance and how does it work?

What is Life Insurance?

Life insurance is an insurance policy that can provide financial support for your loved ones when you or your joint policy holder passes away. It can help clear any outstanding debts, such as a mortgage, and cover your family's living and other expenses such costs of education, so your family can continue to pay bills and living expenses. In addition to life insurance, insurance providers offer related products such as income protection and critical illness, which we will touch upon below.

How does it work?

Life insurance pays out if you die. The payout can be in the form of a lump sum payment or can be paid as a replacement for a regular income. It's your decision how much cover you'd like to take based on your financial resources and how much you'd like to leave to your family to help them deal with any outstanding debts and living expenses. Your premium depends on a number of factors, including your occupation, health and other criteria.

The payout amount can change over time or can be fixed. A level term or whole of life policy offers a fixed payout. A decreasing term policy offers a payout that decreases over the term of the cover.

With critical illness policies, a payout is made if you’re diagnosed with a terminal illness with a remaining life expectancy of less than 12 months. While income protection policies ensure you can continue to meet your financial commitments if you are forced to take an extended break from work. If you can’t work because you’ve had an accident, fallen sick, or lost your job through no fault of your own, income protection insurance pays you an agreed portion of your salary each month.

Income protection is particularly helpful for people in dangerous occupations who want to be sure their mortgage will always be covered. Income protection only covers events beyond your control: you’re much less likely to be covered if you’re fired from your job or if you injure yourself deliberately.

Questions to ask yourself regarding life insurance

Just ask yourself:
👉 Who would pay your mortgage or rent if you were to pass away or fall seriously ill?
👉 Who would pay for your family’s food, clothing, study fees or lifestyle?
👉 Who would provide for the costs of your funeral or clear your debts?
👉 Who would pay for your costs if you're unable to work due to serious illness or disability?

Many families don’t realise that life, income protection and critical illness insurance is one of the most effective ways to protect their finances. A great insurance policy can cover costs, protect a family from inheriting debts and even pay off a mortgage.

Many would think that the costs for all the benefits provided by life insurance, income protection insurance or critical illness insurance are too high, but the great news is in the current market policies are actually very inexpensive.

Benefits offered by income protection, life and critical illness insurance

Life insurance, income protection and critical illness insurance are indispensable for every family because a child loses a parent every 22 minutes in the UK, while every single day tragically 60 people suffer major injuries on the UK roads. Some people become unable to work because of sickness or disability.

Life insurance cover pays out a lump sum to your family, loved ones or whomever you choose to get the money. This can be used to secure the financial future of your loved ones meaning they would not have to struggle financially in the event of your death.

If it's a critical illness cover, the payout happens sooner - upon diagnosis of a serious illness, disability or medical condition, easing the financial hardship such an event inevitably brings.

Income protection insurance can be very important for anyone who relies on a pay check to cover their living costs, but it's especially important if you’re self-employed or own a small business, where your employment and income is a bit less stable. It pays a regular income if you can't work because of sickness or disability and continues until you return to paid work or you retire.

In a world where 1 in 4 of us would struggle financially after just four weeks without work, the stark reality hits hard – a mere 7% of UK adults possess the vital shield of income protection. The urgency of safeguarding our financial well-being has never been more palpable.

Let's face it – relying on savings isn't a solution for everyone. Almost 25% of people have no savings at all, and a whopping 50% have £1,000 or less tucked away. Even more concerning, 51% of Brits – that's a huge 27 million people – wouldn't last more than one month living off their savings. That's a 10% increase from 2022.

And don't even think about state benefits being a safety net. The maximum you can expect from statutory sick pay is a mere £109.40 per week for up to 28 weeks. Not exactly a financial lifeline, right?

Now, let's tackle a common objection: "But I have critical illness insurance. I don't need income protection too." Here's the deal – the two policies apply to very different situations. In a nutshell:

  • Critical illness insurance pays a single lump sum if you're diagnosed with or undergo surgery for a specified potentially life-threatening illness. It's great for handling big one-off expenses or debts.
  • Income protection, on the other hand, pays a percentage of your salary as a regular payment if you can't work due to illness or injury. It's the superhero that tackles those relentless monthly bills.

Types of life insurance policies

Common reasons for getting a life insurance policy are to:
✅ Leave behind an amount of money to keep your family comfortable
✅ Protect the family home and pay off the mortgage in full or in part
✅ Pay for funeral costs

Starting from as little as a couple of pounds per week, you can do all that with a Life Policy.

Level Term Life Insurance
One of the simplest forms of life insurance, level term life insurance works by selecting a length of time for which you would want to be covered and then deciding how much you would like your loved ones to receive should the worst happen. Should your life insurance policy pay out to your family, it would be in a lump sum amount that can be used in whatever way the beneficiary may wish.

Decreasing Term Life Insurance
Decreasing term life insurance works in the same way as level term, except the lump sum payment amount upon death decreases with time. The common use for decreasing term life cover is to protect against mortgage repayment as the lump sum decreases along with the principal of the mortgage itself.

Increasing Term Life Insurance
Increasing term life insurance aims to pay out a cash sum growing each year if the worst happens while covered by the policy. With increasing term life cover amount insured increases annually by a fixed amount for the length of the policy. This can protect your policy's value against inflation, which could be advantageous if you’re looking to maintain your loved ones’ living standards, continue paying off your mortgage in line with its repayment schedule and cover your children’s education fees.

Whole of Life Insurance
Whereas term life insurance policies only pay out if you pass away during their term, whole of life insurance pays out to your beneficiaries whenever this should happen. The most common uses for whole life insurance are to cover the costs of a funeral or as a vehicle for your family's inheritance tax planning.

Family Income Benefit
Family income benefit is a somewhat lesser-known product in the family of life insurance products. Paying out a set amount every month of year to your beneficiaries, it is the most cost-effective way of maintaining your family's living standards to an age where you'd expect them to be able to support themselves financially. The most common use would be for a family with children who are not working yet so are unable to take care of themselves financially.

Relevant Life Insurance
Relevant Life Insurance is a tax-efficient policy for a director or single employee. A simple level term life insurance product, it is placed in a specific trust to ensure its tax efficiency. The premiums are tax deductible and any benefit payable should a claim arise is also paid out tax free, which makes it an attractive product for entrepreneurs and their businesses.

Important Fact!

There is no need to wait until the renewal of your current policy.
We can look at a more suitable option mid-term!

Why is it important to get life insurance early?

👉 Many people are very thankful that they had their life, income protection, and critical illness insurance cover in place before running into some serious issues. Critical illness and income protection insurance is as important as life insurance for protecting your family's finances.

👉 We insure our cars, houses, bicycles and even bags! Yet our life and health are the most precious things we have.

Easily one of the most important insurance purchases an individual or family can make in their lifetime, the decision to buy life, income protection, critical illness and private medical health insurance can be made much simpler with the help of experienced advisers. They are the specialists who do the searching and analysis helping people choose between various types of life insurance policies available in the market, including income protection, critical illness and other types of policies most suitable to the client's individual circumstances.

It certainly won't do any harm if you speak with one of our experienced FCA-authorised insurance partner experts who are passionate about advising people on financial matters related to life insurance and are keen to provide you with a free consultation.

You can discuss with them in detail what affordable life, income protection, critical illness or private medical health insurance plan for the necessary peace of mind they would recommend! WeCovr works with some of the best advisers in the market.

By tapping the button below, you can book a free call with them in less than 30 seconds right now:

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How It Works

1. Complete a brief form
Complete a brief form
2. Our experts analyse your information and find you best quotes
Experts discuss your quotes
3. Enjoy your protection!
Enjoy your protection

Any questions?

Life, income protection, and/or critical illness insurance are safety nets, very important at a difficult time. If anything happened to you before your cover ends, your life or critical illness insurance would pay a lump sum to your family and/or you (if you took a critical illness or income protection cover) to help cover the losses. Being diagnosed with a critical illness can be devastating, and it won't help matters to be also worrying about how you would cope financially. With a life, income protection, or critical illness policy, you can choose how much cover you need, how you want the policy to pay out, and whether you want cover for both you and your partner. Income protection insurance pays you a regular income if you can't work because of sickness or disability and continues until you return to paid work or you retire. Also known as permanent health insurance, it is quite important for anyone who relies on a paycheck to cover their living costs, but it's particularly important if you're self-employed or own a small business, where your income might be a bit less stable.

Life, income protection, and critical illness insurance pay out millions to families every day. Your expert will explain to you that you need to be honest and open when applying for your insurance.

If you're single with no dependants then it may be that you don't need life assurance. However, if you were to become seriously ill and unable to work, you may benefit from a critical illness or income protection policy. They can help you keep up to date with your rent, bills, food, and other expenses.

It's free to use WeCovr to find life, income protection, and critical illness insurance - we never charge you for quotes. Critical illness, income protection, and life insurance is an investment that pays many times over for you and/or your loved ones.

Life, income protection, and critical illness insurance are important financial products that insurance companies take a lot of care and diligence, so speaking to real human beings ensures that they understand your requirements fully so that you can get the right cover.

All of our partners are carefully vetted and authorised by the FCA, which means they are held to the highest standards that the FCA expects from them and treat all customers fairly!

Our insurance partners give us a few pounds when you take out a policy with one of their experts.

The cost of life insurance depends on several factors, including your age, occupation, health status, and the level of coverage you choose. Your life insurance policy is tailored to your needs, and the cost can vary based on the sum assured, policy term, and other factors.

Some life insurance policies offer an option to add critical illness cover as a rider or as a separate policy. This provides a lump sum payment if you are diagnosed with a critical illness covered by your policy, offering financial support during a difficult time.

Yes, life insurance is available to self-employed individuals to provide financial protection for their loved ones in the event of their death. It ensures that your family can maintain their standard of living and cover expenses such as mortgage payments, bills, and education costs.

If you outlive your life insurance policy and it expires without a claim, you will not receive any payout. Term life insurance policies are designed to provide coverage for a specific period, and once that period ends, the policy terminates without any residual value. However, you can typically renew or purchase a new policy if you still need coverage.

Critical illness insurance provides a lump sum payment if you're diagnosed with a serious illness covered by your policy, offering financial support during a difficult time. It can help cover medical expenses, mortgage payments, and other financial obligations while you focus on recovery.

Critical illness insurance covers a range of serious illnesses and medical conditions specified in your policy, such as cancer, heart attack, stroke, and organ failure. The lump sum payment can be used to cover medical treatment, ongoing care, and living expenses during your recovery.

The cost of critical illness insurance varies depending on factors such as your age, health status, lifestyle, and the level of coverage you choose. Our experts can provide personalised quotes to help you find affordable coverage.

Yes, you can have critical illness insurance alongside your health insurance coverage. Critical illness insurance provides additional financial protection specifically for serious illnesses, complementing your health insurance benefits.

Critical illness insurance policies typically have exclusions for pre-existing conditions and certain medical conditions not covered by the policy. It's essential to review the terms and conditions of your policy to understand what is and isn't covered.

Some critical illness insurance policies may provide coverage for recurring illnesses, while others may not. It's crucial to review the policy terms and understand the specific conditions under which you can make additional claims for recurring illnesses. Your insurer can provide more details on their coverage for recurring critical illnesses.

Yes, you can customise your life insurance policy to suit your individual needs and circumstances. Options may include choosing the sum assured, policy term, premium payment frequency, and additional riders for enhanced coverage.

If you miss a premium payment for your life insurance policy, your coverage may lapse, and your policy could be terminated. However, many insurers offer a grace period during which you can make the payment to keep your policy active. It's essential to contact your insurer to discuss your options if you're unable to make a payment.

Yes, you can typically change the beneficiary of your life insurance policy at any time by completing a beneficiary change form provided by your insurer. It's essential to keep your beneficiary designation up to date to ensure that the proceeds are distributed according to your wishes.

Term life insurance provides cover for a fixed period, such as 10, 20 or 30 years, and pays out a lump sum if you die during that time. It’s often chosen to protect a mortgage or to provide financial support while dependants still rely on your income. Whole-of-life insurance is designed to last for the rest of your life and guarantees a payout whenever you die, as long as premiums are maintained. It’s usually more expensive than term insurance and is sometimes used to help with inheritance tax planning or to leave a guaranteed legacy.

Some term life insurance policies offer the option to convert to a whole life insurance policy without the need for a medical exam or new underwriting. This conversion feature allows you to maintain coverage beyond the term of your policy and provides lifelong protection.

Some life insurance policies offer accelerated death benefits or living benefits that allow you to access a portion of the death benefit if you are diagnosed with a terminal illness. This feature provides financial assistance to help cover medical expenses and other costs during your final months.

While having savings can provide a financial cushion during tough times, income protection insurance offers additional security by replacing a portion of your income if you're unable to work due to illness or disability. It ensures that you can maintain your standard of living and cover essential expenses even if your savings are depleted.

Yes, self-employed individuals can claim income protection insurance if they're unable to work due to illness or disability. Income protection provides a regular income stream to replace lost earnings, helping self-employed individuals cover their living expenses and business costs during periods of incapacity.

The waiting period, also known as the elimination period, is the length of time you must wait after becoming unable to work due to illness or disability before you can start receiving benefits from your income protection insurance policy. Waiting periods typically range from 30 to 90 days, but longer waiting periods may result in lower premiums.

Income protection insurance is designed to provide financial support if you're unable to work due to illness or disability, not for redundancy. However, some policies may offer optional redundancy cover or unemployment cover as an additional benefit, providing a lump sum or monthly payments if you're made redundant.

The tax treatment of income protection insurance benefits depends on whether the premiums were paid with pre-tax or after-tax dollars. Benefits from policies funded with after-tax dollars are typically tax-free, while benefits from policies funded with pre-tax dollars may be subject to income tax. It's essential to consult with a tax advisor to understand the tax implications of your income protection insurance benefits.

Income protection insurance provides a regular income stream if you're unable to work due to illness or disability, while critical illness insurance provides a lump sum payment if you're diagnosed with a covered critical illness, such as cancer, heart attack, or stroke. Critical illness insurance offers financial support to cover medical expenses, living costs, or other obligations during your recovery.

Income protection insurance policies typically have a waiting period (also known as an elimination period) during which you do not receive benefits. If you become unable to work before this waiting period ends, you will not receive any income protection benefits until the waiting period has elapsed. It's important to have sufficient savings or other financial resources to cover your expenses during this initial period.

Many income protection insurance policies allow you to increase your coverage amount if your income rises, without the need for additional underwriting or medical examinations. This feature, sometimes called a 'guaranteed insurability option,' ensures that your coverage keeps pace with your increasing income and financial obligations.

The maximum age to purchase critical illness insurance varies depending on the insurer and the specific policy. While some insurers may offer critical illness insurance up to age 70 or beyond, others may have lower age limits. It's essential to check with insurers to determine their age eligibility criteria for purchasing critical illness insurance.

Whether you can get critical illness insurance if you have pre-existing conditions depends on the insurer's underwriting guidelines and the specific medical conditions. Some insurers may offer coverage with exclusions for pre-existing conditions, while others may decline coverage altogether. It's essential to disclose any pre-existing conditions when applying for critical illness insurance and discuss your options with insurers.

While health insurance provides coverage for medical expenses, critical illness insurance offers financial protection for broader expenses associated with a serious illness, such as lost income, household bills, and lifestyle changes. Critical illness insurance complements health insurance by providing additional financial support during a challenging time, ensuring that you can focus on recovery without worrying about financial burdens.

If you don't make a claim on your critical illness insurance during the policy term, you won't receive a benefit payout. However, having critical illness insurance provides peace of mind knowing that you're financially protected if you're diagnosed with a covered critical illness during the policy term. It's a form of financial preparation for unexpected events and offers valuable protection for you and your family.

If you outlive your critical illness insurance policy and don't make a claim for a covered critical illness during the policy term, the coverage will expire, and you won't receive a benefit payout. Critical illness insurance provides financial protection for a specific period, typically until a specified age or policy term, and offers peace of mind knowing that you're prepared for the unexpected.

Yes, many insurers offer optional riders or add-ons that you can add to your critical illness insurance policy for enhanced coverage. Common riders may include waiver of premium, which waives future premium payments if you become disabled, or return of premium, which refunds a portion of your premiums if you don't make a claim during the policy term. It's essential to review available riders with insurers to customise your coverage to meet your specific needs.

To make a claim on your critical illness insurance policy, you'll need to notify your insurer of your diagnosis and submit a claim form along with any required medical documentation, such as medical reports, test results, and physician statements. Once your claim is reviewed and approved by the insurer, you'll receive the lump sum benefit payment, which you can use to cover medical expenses, living costs, or other financial needs during your recovery.

As we age, the likelihood of encountering health complications increases for us all. In the event that you develop a severe medical condition, critical illness protection can assist with the expenses of crucial bills – enabling you to concentrate on recuperation or adjusting to your new health circumstance.

The typical expense of a Critical Illness protection policy will fluctuate based on aspects such as your age and medical background. As per our investigation, you can secure a policy starting from as low as £8 (for a non-smoking 21-year-old individual).

The most prevalent critical illnesses in the UK are cancer, cardiac arrest, and cerebrovascular accident (stroke).

Cancer is one of the primary causes for critical illness insurance claims in the UK. Cancer constitutes over 80% of critical illness cover claims for females and about 45% of critical illness claims for males.

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Just a quick and simple form and an easy conversation with one of our experts and your valuable insurance policy is in place for that needed peace of mind!