Life Insurance for Fishermen UK
Working in the UK's fishing industry is more than a job; it's a way of life. It’s a profession built on tradition, resilience, and a deep connection to the sea. However, it is also undeniably one of the most hazardous occupations in the country. The unique risks faced by fishermen, from treacherous weather to demanding physical labour, mean that standard, off-the-shelf insurance products are often not fit for purpose.
This guide is designed for you – the skippers, deckhands, vessel owners, and shellfish farmers who power this vital industry. We will navigate the complexities of life insurance, critical illness cover, and income protection, helping you understand how to secure the right financial safety net for yourself, your family, and your business.
Specialist life insurance for fishing industry workers
Securing life insurance when you work in a high-risk profession like fishing requires a specialist approach. Mainstream insurers and comparison websites often use a broad-brush approach to risk, which can lead to automatic declines or prohibitively high premiums for fishermen. They may not have the underwriting expertise to differentiate between a coastal potter working in relatively calm waters and a deep-sea trawler hand operating for weeks in the North Atlantic.
This is where specialist advice becomes invaluable. An expert broker understands the nuances of the fishing industry. They can present your individual circumstances to the right underwriters at major insurance companies, highlighting your experience, safety certifications, and the specific nature of your work. This tailored approach is key to finding comprehensive cover at a fair price.
At WeCovr, we specialise in helping people in high-risk occupations find the protection they need. We work with a wide panel of UK insurers, including those with a deeper understanding of professions like yours, to ensure your application is seen by the right people.
Understanding the Risks: Why Fishermen Need Specialist Cover
To understand why specialist cover is so crucial, it's important to acknowledge how insurers view the risks associated with commercial fishing. Their decisions are based on data, and the statistics for the industry paint a stark picture.
According to the Marine Accident Investigation Branch (MAIB) Annual Report for 2023, the fishing industry continues to be one of the most dangerous sectors to work in.
- Fatality Rate: In 2023, there were 6 fatalities on UK-registered fishing vessels. The fatality rate for fishermen remains significantly higher – by a large multiple – than the average for the UK workforce.
- Accidents and Injuries: The MAIB launched investigations into 75 accidents involving 85 commercial fishing vessels in 2023 alone. These incidents ranged from capsizing and flooding to machinery failure and man-overboard events.
These statistics highlight the primary risks that insurers must consider:
| Risk Factor | Description | Impact on Insurance |
|---|---|---|
| Working Environment | Constant exposure to extreme weather, rough seas, and cold temperatures. | Higher perceived risk of accidents and health complications. |
| Heavy Machinery | Daily use of winches, nets, pots, and processing equipment. | Increased likelihood of serious injury or disability. |
| Long & Irregular Hours | Fatigue from long trips and physically demanding shifts increases the risk of error. | Can contribute to both accidents and long-term health issues. |
| Man Overboard | A significant and ever-present danger, even on well-equipped vessels. | The most acute life-threatening risk in the profession. |
| Physical Strain | The job involves heavy lifting and repetitive movements, leading to musculoskeletal issues. | Higher chance of claims on income protection or critical illness policies. |
Insurers use this information to calculate the "occupational risk" of an application. Without specialist handling, an application that simply states "Fisherman" can be loaded with heavy premiums or rejected outright. A specialist adviser can add crucial context about your specific role, vessel, and operating area to secure more favourable terms.
Key Types of Protection Insurance for Fishermen
A robust financial plan provides a safety net for different scenarios. No single policy covers every eventuality, which is why it's important to understand the main types of protection available.
1. Life Insurance
Life insurance is designed to pay out a lump sum of money if you pass away during the policy term. This money can be used by your loved ones to pay off a mortgage, cover funeral costs, and replace your lost income, ensuring their financial stability at a difficult time.
- Term Life Insurance: This is the most common and affordable type. It covers you for a fixed period (the "term"), for example, until your children are financially independent or your mortgage is paid off. If you pass away within this term, the policy pays out.
- Whole of Life Insurance: This policy covers you for your entire life and guarantees a payout whenever you die. It is typically more expensive and often used for inheritance tax planning.
For fishermen, the key is finding an insurer who will offer terms. Your premiums will be influenced by the specific risks of your job, as well as your age, health, and lifestyle.
2. Critical Illness Cover
Critical Illness Cover pays out a tax-free lump sum if you are diagnosed with one of a list of specific, serious medical conditions defined in the policy. Common conditions include heart attack, stroke, and some forms of cancer.
For a fisherman, a critical illness diagnosis could mean you are permanently unable to return to sea. The physical demands of the job are unforgiving. A payout from a critical illness policy could provide the financial freedom to:
- Clear your mortgage.
- Adapt your home.
- Fund private medical treatment.
- Provide a financial buffer while you consider a new career on-shore.
This cover can often be combined with a life insurance policy.
3. Income Protection Insurance
For many fishermen, especially those who are self-employed, this is arguably the most vital form of cover. If you are unable to work due to illness or injury, your income stops. Income Protection is designed to prevent this.
It works by paying you a regular, tax-free monthly income until you can return to work, reach retirement age, or the policy term ends.
- Deferred Period: This is the waiting period before the policy starts paying out. You can choose a deferred period to suit your needs, from 1 week to 12 months. A longer deferred period results in a lower premium.
- Definition of Incapacity: Look for policies with an "own occupation" definition. This means the policy will pay out if you are unable to perform your specific job as a fisherman, rather than just any job.
Given the high rate of non-fatal injuries in the fishing industry, income protection provides a crucial defence against financial hardship.
4. Other Specialist Protection Products
| Product | What it Does | Who it's For |
|---|---|---|
| Family Income Benefit | Pays a regular, tax-free income upon death, instead of a single lump sum. | Families who would benefit from a managed monthly income to replace lost earnings, rather than a large single payment. |
| Personal Sick Pay | A short-term form of income protection, often with shorter deferred periods (e.g., 1 day or 1 week). | Self-employed fishermen and tradespeople who have no sick pay to fall back on, even for short-term illnesses or injuries. |
| Gift Inter Vivos | A life insurance plan designed to cover a potential Inheritance Tax (IHT) bill on a gifted asset. | Vessel owners or individuals gifting significant assets (like a share in the business) who want to ensure the recipient doesn't face a large tax bill if they die within 7 years. |
The Application Process: What Insurers Need to Know
Honesty and detail are your best friends during the application process. Withholding information, even unintentionally, could lead to a claim being denied in the future. A specialist broker will guide you through this, ensuring your application is accurate and comprehensive.
Insurers will want to build a complete picture of your work. Be prepared to answer questions about:
Your Occupation
- Your specific role: Are you the Skipper, a Deckhand, an Engineer?
- Type of vessel: Is it a trawler, potter, dredger, or longliner? What is its size (e.g., under or over 10 metres)?
- Type of fishing: Are you involved in demersal (deep-water), pelagic (mid-water), or shellfish fishing?
- Time at sea:
- How many days are you at sea per trip?
- How many weeks or months do you work per year?
- Geographical limits: Do you work inshore (e.g., within 12 nautical miles), or do you operate in more distant waters like the North Sea, Atlantic, or internationally?
- Hazardous duties: Do you work with explosives, or are you involved in diving?
- Safety qualifications: Do you hold up-to-date certificates in Sea Survival, First Aid at Sea, Fire Fighting, or Health and Safety? This is very important as it demonstrates a professional and safety-conscious approach.
Your Health and Lifestyle
- Standard questions: Age, height, weight (BMI), smoking status, and alcohol consumption.
- Medical history: Any pre-existing conditions, past surgeries, or ongoing treatments.
- Family medical history: Any history of serious hereditary conditions in your immediate family.
Your Hobbies
- Insurers will also ask about any potentially risky hobbies, such as recreational diving, motorsports, or aviation.
Providing this level of detail allows an underwriter to make an informed, individualised assessment of your risk, rather than applying a blanket "fisherman" rating.
How Premiums are Calculated for Fishermen
Several factors combine to determine your final premium. While your occupation is a significant part, it's not the only one.
- Occupation: This is the starting point. The underwriter will assess the specific risks of your role based on the detailed information you provide. Working on a large, modern vessel with excellent safety standards in coastal waters will be viewed more favourably than working on an older, smaller vessel in the North Atlantic.
- Age: The younger and healthier you are when you take out a policy, the cheaper your premiums will be.
- Health: Your personal medical history, including your BMI and any pre-existing conditions, will be a key factor.
- Smoker Status: Smokers pay significantly more for protection insurance than non-smokers due to the proven health risks.
- Amount of Cover: The size of the lump sum or monthly income you want will directly impact the cost.
- Policy Term: The length of time you want the cover to last. A 25-year term will cost more per month than a 10-year term.
Example Premium Scenario (Illustrative Only)
Let's consider two fishermen, both aged 30, non-smokers, in good health, seeking £150,000 of life insurance and critical illness cover over 25 years.
- Fisherman A: Works on a modern crab potter, staying within 12 miles of the UK coast. He has all his safety tickets. His application is well-presented by a broker, detailing the vessel's safety equipment and his clean record.
- Fisherman B: Works on a deep-sea trawler for three-week trips in the North Sea. His work involves more hazardous machinery and exposure to more extreme conditions.
Fisherman B will almost certainly pay a higher premium than Fisherman A due to the higher occupational risk. However, by using a specialist broker, Fisherman B can still secure cover by ensuring the underwriter understands his experience, the vessel's safety standards, and his personal safety record, which can help mitigate the perceived risk and keep the premium as competitive as possible.
Business Protection for Fishing Vessel Owners and Skippers
If you own a fishing business, whether as a sole trader or a limited company, you have additional responsibilities and risks to consider. Specialist business protection policies can safeguard the future of your enterprise.
Key Person Insurance
Who is indispensable to your fishing operation? Is it the skipper with 20 years of experience who knows the best grounds? Is it the engineer who can fix anything at sea?
Key Person Insurance is taken out by the business to protect itself against the financial impact of losing such a crucial individual to death or critical illness. The policy pays a lump sum to the business, which can be used to:
- Recruit a replacement.
- Cover lost profits during the disruption.
- Reassure lenders and suppliers.
- Pay off business loans.
For a fishing operation, where success often depends on the unique skills of a few individuals, this cover can be the difference between survival and failure.
Relevant Life Insurance
If you run your fishing business as a limited company, Relevant Life Insurance is a highly tax-efficient way to provide life insurance for yourself and your employees.
- The company pays the premiums, which are typically treated as an allowable business expense.
- The benefits are not considered a 'benefit in kind', so there is no extra income tax for the employee.
- The payout is made into a trust, so it does not form part of the deceased's estate for Inheritance Tax purposes.
This is often a much more cost-effective method of arranging life cover for directors than a personal policy.
Executive Income Protection
Similar to a Relevant Life Plan, Executive Income Protection is a policy paid for by a limited company to provide an income for a director or employee if they are unable to work. Again, the premiums are usually an allowable business expense, making it a tax-efficient alternative to a personal income protection policy.
Practical Tips for a Healthier and Safer Life at Sea
While insurance provides a financial safety net, the best strategy is always to prioritise your health and safety. The demanding nature of life at sea requires proactive self-care.
Focus on Your Physical Health
- Stay Hydrated: Dehydration can lead to fatigue, headaches, and reduced concentration. Make a conscious effort to drink plenty of water throughout your shift.
- Eat for Endurance: Life at sea is a marathon, not a sprint. Fuel your body with a balanced diet rich in complex carbohydrates (oats, whole grains), lean protein, and vegetables. Minimise reliance on sugary snacks and drinks that lead to energy crashes.
- Protect Your Body: The repetitive strain of hauling pots and nets can lead to chronic back and joint pain. Use correct lifting techniques, and perform regular stretching exercises focusing on your back, shoulders, and legs.
As a WeCovr customer, you get complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app. It's a simple tool to help you monitor your food intake and make healthier choices, supporting your long-term wellbeing both on and off the water.
Manage Your Mental Wellbeing
- Stay Connected: Long trips away from family can take a toll. Make use of technology to stay in touch with loved ones whenever possible. A simple video call can make a world of difference.
- Recognise the Signs of Strain: Isolation, fatigue, and financial pressure can contribute to stress and anxiety. Don't be afraid to talk about it. Organisations like The Fishermen’s Mission offer confidential support and practical help for fishermen and their families.
- Decompress on Shore: Use your time on land to rest and recharge fully. Engage in hobbies and spend quality time with friends and family to create a healthy work-life balance.
Prioritise Sleep
- Create a Routine: Even with shift work, try to establish as regular a sleep pattern as possible.
- Optimise Your Bunk: Make your sleeping area as dark, quiet, and comfortable as you can. Blackout curtains and earplugs can be a great help.
- Avoid Stimulants: Limit caffeine and nicotine, especially in the hours before you plan to sleep.
Finding the Right Policy: Why Use a Specialist Broker?
When you work in a specialist industry, you need specialist advice. While it might be tempting to use a mainstream comparison website, you risk being misunderstood and poorly served.
Here's why a broker like WeCovr is your best port of call:
- We Understand Your Job: We know the difference between a trawler and a potter. We know to ask about your safety qualifications and the specifics of your vessel.
- Access to Underwriters: We have established relationships with underwriters at the UK's leading insurance providers. We can speak to them directly to discuss the nuances of your case.
- Framing Your Application: We present your application in the best possible light, highlighting the factors that mitigate your risk and demonstrating your professionalism. This can result in better terms and fairer premiums.
- Market-Wide Comparison: We don't just work with one insurer. We compare policies and prices from across the market to find the combination of cover and cost that is right for you and your family.
Protecting your family’s future is too important to leave to chance. Let our experts navigate the insurance market for you, so you can focus on what you do best.
Will my life insurance premiums be much more expensive as a fisherman?
What happens if I stop fishing and change to a less risky job?
Do I need a medical exam to get life insurance?
Can I get critical illness cover as a fisherman?
I'm a self-employed fisherman. What's the most important cover for me?
What information do I need to provide about my fishing work?
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!
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 FCA-authorised 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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WeCovr is an insurance specialist for people valuing their peace of mind and a great service.👍 WeCovr will help you get your private medical insurance, life insurance, critical illness insurance and others in no time thanks to our wonderful super-friendly experts ready to assist you every step of the way.
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