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Key Person Insurance for Charity CEOs

WeCovr Editorial Team · experienced insurance advisers
Last updated Mar 14, 2026
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TL;DR

WeCovr explains how Key Person Insurance for UK charities protects vital funding streams if a CEO or key fundraiser dies or falls critically ill, helping non-profits secure their mission.

Key takeaways

  • Key Person Insurance pays a lump sum to a charity if a vital employee, like a CEO or fundraiser, dies or becomes critically ill.
  • The payout is designed to replace lost income, cover recruitment costs, and ensure the charity's financial stability during a crisis.
  • For charities, this cover is often called 'Relevant Person Insurance' and premiums are typically a legitimate operational expense.
  • Cover can include life insurance only, or combined life and critical illness cover, with the latter being vital for managing long-term absence.
  • Executive Income Protection is a key alternative, providing a monthly benefit to the charity to continue paying a CEO's salary during sickness.

How non-profits can protect their funding streams if a key fundraiser falls ill

In every successful non-profit organisation, there is often an indispensable individual. It might be the charismatic CEO whose vision inspires major donors, the head of fundraising with an unmatched network of contacts, or the programme director whose expertise secures multi-year grants.

These individuals are the lifeblood of the charity. Their passion, skill, and relationships are directly linked to the organisation's ability to raise funds and deliver on its mission.

But what happens if that person is suddenly unable to work?

A serious illness, a severe injury, or an unexpected death can create a devastating void. Beyond the personal tragedy, the financial shockwaves can threaten the charity's very existence. Funding streams can dry up, donor confidence can waver, and crucial projects can grind to a halt.

This is not a theoretical risk. It's a critical vulnerability that many charity boards and trustees overlook until it's too late. The solution is a strategic financial tool designed for this exact scenario: Key Person Insurance.

This comprehensive guide will explain everything charity leaders, trustees, and CEOs need to know about using Key Person Insurance to build financial resilience, protect funding, and safeguard their organisation's future.

What is Key Person Insurance for Charities?

Key Person Insurance is a business protection policy taken out by an organisation on the life of its most crucial employees. In the third sector, it is often referred to as Relevant Person Insurance.

Here’s the simple mechanism:

  1. The Charity identifies a 'key person' whose long-term absence or death would cause a significant financial loss.
  2. The Charity takes out an insurance policy on that person's life, pays the monthly or annual premiums, and is the sole owner of the policy.
  3. If the key person dies or is diagnosed with a specified critical illness during the policy term, the Insurer pays a tax-free lump sum directly to the Charity.

It is vital to understand that the payout goes to the organisation, not to the individual or their family. Its purpose is to inject capital into the charity at the precise moment it's needed most, giving the board the resources to manage the crisis and navigate the path forward.

Think of it as a financial first-aid kit for your organisation's balance sheet. It provides immediate relief, stabilises the situation, and buys you the most valuable commodity in a crisis: time.

The 'Key Person' in a Non-Profit: More Than Just Profit

In a commercial business, a key person is typically someone who directly generates profit. For a charity, the definition is broader and arguably more profound. A key person is anyone whose absence would jeopardise the charity's ability to operate and fulfil its core purpose.

Your key person might be:

  • The Visionary CEO: The public face of the charity, essential for maintaining relationships with major philanthropists, grant-making bodies, and the media. Their absence could lead to a loss of confidence and funding.
  • The Star Fundraiser: The individual who consistently secures a large percentage of the charity's voluntary income through appeals, events, or corporate partnerships.
  • The Grants & Bids Specialist: The expert with a unique talent for writing successful, high-value grant applications that form the bedrock of your charity's income.
  • The Programme Innovator: The director whose unique technical expertise or research knowledge underpins a flagship, funded project.

Real-Life Scenario: The Impact of Losing a Key Fundraiser

Imagine a mid-sized environmental charity with an annual income of £2 million. Their Head of Philanthropy, Sarah, has single-handedly cultivated relationships that bring in £800,000 each year from major donors.

Sarah is suddenly diagnosed with a serious illness and needs to take at least 12 months off for treatment and recovery.

The Immediate Financial Impact:

  • Income Plummets: The £800,000 funding stream is now at high risk. Relationships stall, and planned 'asks' are delayed.
  • Operational Strain: Remaining staff are stretched thin, trying to cover Sarah's complex role while managing their own workloads.
  • Recruitment Crisis: Finding a replacement with Sarah's network and track record is difficult, expensive, and time-consuming. A specialist recruitment agency alone could charge £30,000+.
  • Project Delays: A new conservation project, contingent on a funding pledge secured by Sarah, is now on hold, damaging the charity's reputation.

Without a financial buffer, the board is forced into making painful decisions: cutting services, freezing recruitment, or even making redundancies. With Key Person Insurance, the narrative is entirely different. The charity would receive a lump sum payout, enabling it to weather the storm effectively.

How Does Key Person Insurance Work? A Step-by-Step Guide for Trustees

Implementing Key Person cover is a straightforward process that demonstrates responsible governance and strategic financial planning. Here's how it works.

Step 1: Identify Your Key People

The board of trustees should meet to identify individuals whose loss would cause a measurable financial impact. Ask these critical questions:

  • Would our total funding fall significantly if this person were absent for a year?
  • Would we lose key relationships with major donors or grant-makers?
  • Would a flagship project have to be abandoned?
  • How much would it realistically cost to recruit and train a replacement?

An individual is 'key' if the answer to one or more of these questions is a resounding 'yes'.

Step 2: Calculate the Right Amount of Cover

This is the most critical part of the process. Insuring for too little defeats the purpose, while insuring for too much is an unnecessary expense. There are two primary methods for charities:

Calculation MethodHow It WorksExample
Contribution to IncomeCalculate the annual income the key person is directly responsible for generating or securing. The sum insured is typically a multiple of this figure (e.g., 2 to 5 times).A fundraiser generates £400,000 annually. A 3x multiple would mean a cover amount of £1.2 million.
Cost of ReplacementCalculate the total cost of managing the person's absence. This includes recruitment fees, the salary of a temporary and/or permanent replacement, training costs, and an allowance for lost income during the transition.It might cost £40,000 in recruitment fees, £70,000 for a temporary director's salary, and an anticipated £250,000 drop in funding. The required cover would be £360,000.

For most charities, a blend of both methods provides the most realistic figure. It's about quantifying the financial hole that would be left and insuring to fill it.

Step 3: Choose the Type of Cover

You can structure a Key Person policy in two main ways:

  1. Life Insurance Only: This policy pays out the agreed lump sum if the key person dies during the policy term. It is the simpler and more affordable option.
  2. Life Insurance and Critical Illness Cover: This is a combined policy. It pays out on the key person's death OR if they are diagnosed with a specific serious condition (like cancer, heart attack, or stroke) and survive.

For charities, Critical Illness cover is arguably more important than life cover alone. A key fundraiser being off work for 18 months with cancer can be far more financially disruptive than their sudden death. The organisation faces the challenge of a prolonged income dip while still having the moral and sometimes contractual obligation to the absent employee.

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Step 4: The Application and Underwriting Process

The charity is the applicant and will own the policy. The key person's role is to provide the necessary personal information for the insurer's underwriting team.

  • Application Form: The charity completes the business details.
  • Health & Lifestyle Questionnaire: The insured individual completes a form covering their medical history, occupation, and lifestyle (e.g., smoking, alcohol consumption).
  • Financial Justification: The charity provides the rationale for the level of cover requested.
  • Medical Evidence: For large sums insured or certain medical disclosures, the insurer may request a report from the individual's GP or a nurse medical screening, which the insurer pays for.

Full and honest disclosure from the key person is paramount. Any inaccuracies could invalidate the policy and lead to a claim being rejected.

Step 5: The Claim and Payout

If the insured event occurs (death or diagnosis of a specified critical illness), the charity informs the insurer to start the claims process.

  • For a death claim: The insurer will require the death certificate and the policy documents.
  • For a critical illness claim: The insurer will need medical evidence confirming the diagnosis, typically a report from the consultant.

Once the claim is approved, the insurer pays the lump sum directly into the charity's bank account, providing the funds to implement its contingency plan.

How a Charity Can Use the Key Person Payout

The lump-sum payment is unrestricted, giving the board complete flexibility to use it where it is most needed. This financial injection can be used to:

  • Recruit a Replacement: Cover the high fees charged by specialist executive search firms to find a top-tier replacement.
  • Pay for an Interim Manager: Hire a highly experienced interim CEO or Fundraising Director to provide leadership and stability during the transition.
  • Plug the Funding Gap: Replace the lost donations or grant income, ensuring that existing services and programmes continue uninterrupted.
  • Reassure Stakeholders: Demonstrate to donors, grant-makers, and the Charity Commission that the organisation is well-managed and financially resilient.
  • Train Existing Staff: Invest in upskilling internal team members to help them step up and take on new responsibilities.
  • Protect Dependent Projects: Provide the capital needed to see a key project through to completion, even without its original leader.
  • Service Debt: If the key person was instrumental in securing a loan or mortgage for a new building, the funds can be used to ensure repayments are met.

In essence, the payout transforms a potential catastrophe into a manageable business challenge.

Tax Treatment: A Crucial Consideration for Charities

The tax treatment of Key Person Insurance is a key area where expert advice is essential. The rules, established through case law, are generally favourable for charities when the policy is set up correctly.

Are the Premiums a Legitimate Expense?

Yes. For the vast majority of charities, the premiums paid for a genuine Key Person policy are considered a legitimate operational expense. The policy's purpose is "wholly and exclusively" for the benefit of the organisation's mission—to protect its income and continuity. This should be formally minuted by the board of trustees.

Is the Payout Taxable?

Generally, no. Provided the policy is structured correctly from the outset, the lump-sum payout received by the charity is typically free from Corporation Tax.

According to HMRC's guidance (found in the Business Income Manual at BIM45525), for a payout to be tax-free, the policy's sole purpose must be to cover a loss of income or revenue resulting from the loss of the key person.

The policy must NOT be intended as a reward or benefit for the employee or their family. This is why the charity must be the owner and beneficiary of the policy.

Navigating the nuances of HMRC's rules is vital. At WeCovr, we ensure that every Key Person policy we arrange for our charity clients is structured to meet these conditions, providing peace of mind that the protection will work as intended when it matters most.

Executive Income Protection: An Alternative for Protecting Your CEO

While Key Person Insurance provides a lump sum to protect the organisation, what about protecting the CEO's income if they are off sick long-term? This is where Executive Income Protection comes in.

It's a different but complementary type of business protection policy that is becoming increasingly popular in the third sector.

What is Executive Income Protection?

Executive Income Protection is a policy owned and paid for by the charity. If the insured executive (e.g., the CEO) is unable to work due to illness or injury, the policy pays a regular monthly benefit to the charity. The charity can then use this money to continue paying the CEO through the payroll (PAYE).

Key Features:

  • Benefit: Can cover up to 80% of the employee's gross earnings (salary plus benefits in kind).
  • Recipient: The monthly payments go to the charity, not the employee.
  • Tax: The benefit is paid to the charity as trading income, but because it's used to pay the employee's salary (which is an allowable expense), the two effectively cancel each other out for tax purposes.
  • Purpose: Allows the charity to keep its leader on the payroll during a long-term absence without draining precious reserves.

This is a powerful tool for attracting and retaining top talent. It provides the CEO with invaluable financial security, while protecting the charity from the financial burden of extended sick pay.

Key Person Insurance vs. Executive Income Protection

It's important to understand the different roles these two policies play. They solve different problems.

FeatureKey Person InsuranceExecutive Income Protection
Primary GoalProtect the organisation from financial loss.Protect the employee's salary during sickness.
Payout FormatOne-off lump sum.Regular monthly income.
Who Receives the Money?The charity.The charity (which then pays the employee).
Typical Use of FundsCover lost funding, recruitment costs, project continuity.Continue paying the sick employee's salary via PAYE.
Core BeneficiaryThe charity's financial stability and mission.The employee's financial security (and the charity's duty of care).

Many charities choose to implement both. Key Person cover acts as the strategic fund to manage the organisational crisis, while Executive Income Protection handles the ongoing salary commitment to the absent leader.

Common Mistakes Charities Make (And How to Avoid Them)

Arranging business protection can seem complex, and several common pitfalls can undermine a policy's effectiveness.

  1. Under-insuring to Save Money: Opting for a £100,000 policy when the calculated need is £500,000 is a false economy. The premium will be lower, but the payout will be inadequate in a real crisis.
  2. Insuring the Wrong Person: Don't insure someone based on their job title alone. The key criterion is quantifiable financial impact. A junior fundraiser who brings in 30% of your income may be a more 'key' person than a non-fundraising director.
  3. Forgetting Critical Illness Cover: The risk of a key person being unable to work for a year due to illness is statistically much higher than the risk of them dying. A 'life only' policy leaves the charity exposed to the most likely scenario.
  4. Incorrect Policy Ownership: The policy must be owned by, and payable to, the charity. If the individual owns the policy, the payout will go to their estate, bypassing the charity entirely and creating potential Inheritance Tax liabilities.
  5. 'Set and Forget' Mentality: A charity's needs evolve. The person who was key three years ago may have trained a successor. The level of funding they generate may have increased. Cover should be reviewed every 1-2 years to ensure it remains fit for purpose.

Working with an expert broker like WeCovr helps you avoid these mistakes. We provide guidance at every stage, from calculation to application and regular reviews. As part of our commitment to our clients' wellbeing, we also provide complimentary access to health tools like our CalorieHero AI-powered nutrition app.

The Underwriting Process: What to Expect

Underwriting is the insurer's process for assessing the risk of insuring your key person. It determines the final premium and any special terms.

The key person will need to provide information on:

  • Medical History: Including past illnesses, treatments, and any current conditions.
  • Family Medical History: History of certain hereditary conditions (e.g., heart disease, cancer) in close relatives.
  • Lifestyle: Details on smoking status, alcohol consumption, and any hazardous hobbies.
  • Occupation: The nature of their work.

For a healthy individual with a clean medical history, the policy can often be approved based on the application form alone.

For older applicants, those with pre-existing conditions, or those applying for very large sums insured (e.g., over £1.5 million), the insurer may require more information. This could be a report from their GP, a telephone medical interview, or a nurse screening (blood pressure, cholesterol check, etc.). The insurer always pays the cost of obtaining this extra evidence.

The golden rule is 100% honesty. Failing to disclose a material fact, however small it may seem, can give the insurer grounds to refuse a claim.

How WeCovr Helps Charities Secure the Right Protection

Choosing the right protection for your charity is a significant board-level decision. At WeCovr, we specialise in helping non-profits and businesses navigate this landscape with confidence and clarity.

Here’s how we help:

  • Specialist Expertise: We understand the unique structure and financial pressures of the third sector. We don't just sell policies; we provide strategic advice tailored to your organisation's mission.
  • Whole-of-Market Comparison: As an independent broker, we are not tied to any single insurer. We compare policies and premiums from all the major UK providers to find you the best terms and value.
  • Guidance on Calculation: We work with your board to conduct a thorough needs analysis, ensuring you apply for a level of cover that is robust and justifiable.
  • Correct Structuring: We ensure the policy is set up correctly from day one—owned by the charity and structured to be as tax-efficient as possible.
  • Application Management: We handle the paperwork, liaise with the insurer's underwriters, and manage the entire process on your behalf, saving you valuable time.
  • No Broker Fee: Our expert advice and support come at no cost to your charity. We are paid a commission by the insurance provider if you decide to proceed with a policy.

Protecting your charity against the loss of a key person is one of the most responsible and strategic decisions a board of trustees can make. It's an investment in resilience, continuity, and the long-term future of your mission.


What happens to the Key Person policy if the employee leaves the charity?

If a key person leaves the charity, the organisation has a few options. The most common course of action is to cancel the policy, as the original reason for the cover no longer exists. No premiums are returned. In some rare cases, it might be possible to transfer the policy to a new employer or assign it to the individual, but this is complex and often not practical. The simplest solution is to cancel the old policy and arrange a new one for the new key person.

Can a charity insure more than one key person?

Yes, absolutely. It is common for a charity to have several key people. For example, you might identify both your CEO and your Head of Fundraising as vital to your success. You can take out separate Key Person policies on each individual for different amounts of cover, reflecting their unique financial contribution and replacement cost.

Is Key Person Insurance expensive for a non-profit?

The cost of Key Person Insurance should be viewed as a vital investment in risk management, not just an expense. The premium is a tiny fraction of the potential financial loss it protects against. The final cost depends on the cover amount, the policy term, and the age, health, and lifestyle of the insured person. For example, £500,000 of combined life and critical illness cover for a healthy, 45-year-old non-smoker might cost between £100 and £150 per month—a small price to pay to protect a major funding stream.

Do we need a board resolution to take out this insurance?

Yes. The decision to take out Key Person Insurance is a matter of financial governance and should be made at the board level. The decision, including the rationale for identifying the key person and the calculation for the sum insured, should be formally recorded in the board meeting minutes. This demonstrates to the Charity Commission and other stakeholders that the trustees are acting prudently to protect the organisation's assets and future.

Take the first step towards securing your charity's future. Contact WeCovr today for a free, no-obligation discussion with a business protection specialist. We'll help you compare your options and find the right cover to protect your mission.

Sources

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

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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WeCovr is an FCA‑regulated insurance broker. We may earn a commission if you purchase a policy via us. This guide is written to be impartial and informational.

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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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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.

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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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