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Life Insurance for Limited Companies UK

WeCovr Editorial Team · experienced insurance advisers
Last updated Feb 2, 2026
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TL;DR

As a company director in the UK, you wear many hats. You're a strategist, a leader, a salesperson, and often, the driving force behind your business's success. This relentless dedication builds value for your company, but have you considered how to protect the most important asset of all – yourself and your family – in the most tax-efficient way possible?

Key takeaways

  • Owner & Payer: The limited company.
  • Person Insured: An employee or salaried director.
  • Beneficiaries: The family or nominated individuals of the insured person.
  • Separates the Money: It ensures the payout from the insurer is made to the trust, not to the company or the individual's estate.
  • Avoids Inheritance Tax: Because the money is held in the trust, it falls outside the deceased's estate and is therefore not subject to the 40% Inheritance Tax. This can save your family a fortune.

As a company director in the UK, you wear many hats. You're a strategist, a leader, a salesperson, and often, the driving force behind your business's success. This relentless dedication builds value for your company, but have you considered how to protect the most important asset of all – yourself and your family – in the most tax-efficient way possible?

Many directors automatically turn to personal life insurance, paying for it from their post-tax income. However, for those running a limited company, there's a far smarter, more cost-effective solution hiding in plain sight: Relevant Life Insurance.

This comprehensive guide will unpack everything you need to know about life insurance for limited companies. We'll explore how directors can leverage Relevant Life Plans to secure significant tax savings, protect their loved ones, and integrate this cover into a robust financial plan. We will also touch upon other critical protection policies that every business owner should consider.

How directors can take advantage of relevant life plans

For too long, generous 'death-in-service' benefits were seen as the exclusive perk of large corporations. Smaller businesses and their directors often missed out, forced to arrange personal cover at a much higher net cost. The introduction of Relevant Life Plans (RLPs) changed the game entirely.

An RLP is essentially a company-paid 'death-in-service' policy for an individual employee or director. The limited company pays the monthly premiums, but the policy is designed to pay a tax-free lump sum directly to the director's family or chosen beneficiaries upon their death.

The primary advantage lies in its remarkable tax efficiency. By structuring your life insurance this way, you can unlock substantial savings for both your company and yourself personally. It's a financial strategy that turns a personal expense into a legitimate, tax-deductible business expense.

Imagine providing your family with hundreds of thousands, or even millions, of pounds of life cover without paying a single penny from your own taxed bank account. That is the power of a Relevant Life Plan.

What is a Relevant Life Plan? A Deep Dive

At its core, a Relevant Life Plan is a term life insurance policy. It pays out a lump sum if the person insured dies within the policy term. The key difference lies in who owns and pays for the policy.

  • Owner & Payer: The limited company.
  • Person Insured: An employee or salaried director.
  • Beneficiaries: The family or nominated individuals of the insured person.

Unlike a typical life insurance policy where the payout might form part of your estate for Inheritance Tax (IHT) purposes, an RLP is always written into a discretionary trust from the very beginning.

Why is the Trust so Important?

The trust is the legal framework that makes the whole structure work.

  1. Separates the Money: It ensures the payout from the insurer is made to the trust, not to the company or the individual's estate.
  2. Avoids Inheritance Tax: Because the money is held in the trust, it falls outside the deceased's estate and is therefore not subject to the 40% Inheritance Tax. This can save your family a fortune.
  3. Ensures Quick Payout: The trustees (who you appoint) can distribute the funds to your beneficiaries quickly, without waiting for the lengthy process of probate.

A Relevant Life Plan is designed for small and medium-sized enterprises (SMEs) that don't have enough eligible employees to set up a full Group Life Insurance scheme. It allows them to offer competitive benefits and attract and retain top talent, including themselves.

The Unbeatable Tax Advantages of Relevant Life Cover

This is where Relevant Life Plans truly shine and offer a compelling reason for every eligible director to consider one. The savings are multi-layered, benefiting both the business and the individual. Let's break it down.

Benefits for the Limited Company:

  • Corporation Tax Relief: The monthly premiums are typically treated as an allowable business expense by HMRC. This means you can deduct the full cost of the premiums from your company's profits, reducing your Corporation Tax bill.
  • No National Insurance: The company does not pay Employer's National Insurance contributions on the premiums.

Benefits for the Director/Employee:

  • No Income Tax: The premiums are not considered a P11D benefit-in-kind. This is a huge advantage. Normally, if your company pays for a personal benefit (like a gym membership or private medical insurance), you have to pay income tax on the value of that benefit. With an RLP, you don't.
  • No National Insurance: You do not pay any Employee's National Insurance contributions on the premiums.
  • Inheritance Tax-Free Payout: As the policy is held in a trust, the lump sum payout goes directly to your beneficiaries and is not assessed for Inheritance Tax.

Real-World Example: The Financial Impact

Let's compare the cost of a director funding their own personal life insurance versus having the company pay for a Relevant Life Plan.

Assume:

  • Director: A 40-year-old, non-smoker.
  • Salary (illustrative): £60,000 per year (Higher Rate taxpayer at 40%).
  • Required Cover (illustrative): £600,000 lump sum.
  • Life Insurance Premium (illustrative): £50 per month (£600 per year).
  • Corporation Tax Rate: 25% (the main rate from April 2023).

Here is a comparison of the true cost:

FeaturePersonal Life InsuranceRelevant Life Plan
Gross Salary Needed to Pay PremiumTo get £600 of post-tax cash, a 40% taxpayer needs to draw ~£1,000 in salary.£0 (Company pays directly)
Income Tax & NI Paid by Director~£400 (on the £1,000 salary drawn)£0
Premium Paid byDirector (from net pay)Limited Company
Corporation Tax Relief for Company£0£150 (25% of £600 premium)
Net Cost to the "Director & Company" Entity£1,000 (Gross salary needed)£450 (£600 premium - £150 tax relief)
Annual Saving with RLP£550

As the table clearly shows, using a Relevant Life Plan in this scenario results in a saving of £550 every single year. Over a 25-year term, that's a total saving of £13,750. For higher premiums or for individuals in the 45% Additional Rate tax bracket, the savings are even more dramatic.

This isn't a loophole; it's a legitimate, HMRC-accepted way for businesses to provide crucial financial protection for their people.

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Who is Eligible for a Relevant Life Plan?

While incredibly beneficial, Relevant Life Plans are not for everyone. HMRC has specific rules about who can be covered.

You are generally ELIGIBLE if:

  • You are an employee of a UK-based business, which includes salaried directors.
  • Your limited company pays you a salary via PAYE.
  • You have a contract of employment.

You are generally NOT ELIGIBLE if:

  • You are a sole trader.
  • You are an equity partner in a Partnership or a member of a Limited Liability Partnership (LLP).
  • You are a non-salaried director or your remuneration is solely from dividends. You must be taking a salary.
  • The business is not trading for profit (e.g., a charity or non-profit might not qualify).

The key distinction is the "employer-employee" relationship. A Relevant Life Plan must be established "wholly and exclusively" for the purpose of trade, providing benefits for the employee and their family, not just as a tax avoidance scheme for the business owner. For most directors of genuine trading companies, this test is easily met.

If you are unsure of your eligibility, speaking to a specialist insurance broker is essential. Here at WeCovr, we can quickly assess your circumstances and confirm if a Relevant Life Plan is the right fit for you and your company.

Setting Up a Relevant Life Plan: A Step-by-Step Guide

The process of setting up a Relevant Life Plan is more straightforward than you might think, especially with expert guidance.

Step 1: Determine Your Level of Cover

The first question is always: "How much cover do I need?" The goal is to provide a financial cushion for your family to maintain their lifestyle if you were no longer around. A common method is to use a multiple of your total annual remuneration (salary plus dividends).

  • Typical Multiples: Insurers will generally offer cover up to 15-25 times your total remuneration. For example, if your salary is £50,000 and you take £40,000 in dividends (£90,000 total), you could potentially get cover of up to £2.25 million.
  • Consider Your Needs: Think about outstanding debts (mortgage), ongoing living costs for your family, and future expenses like university fees for your children.

Step 2: Get Quotes and Compare the Market

It's crucial not to simply go with the first provider you find. The life insurance market is competitive, and premiums can vary significantly between insurers.

This is where a specialist broker like WeCovr adds immense value. We use our expertise and technology to compare policies from all the major UK insurers, ensuring you get the most comprehensive cover at the best possible price for your company. We handle the paperwork and translate the jargon, making the process seamless.

Step 3: The Application Process

Once you've chosen an insurer, you'll need to complete an application form. Be prepared to provide:

  • Personal Details: Name, date of birth, address.
  • Health & Lifestyle Information: You will be asked questions about your medical history, your family's medical history, your smoking status, alcohol consumption, and any high-risk hobbies. Honesty is paramount here; failing to disclose information could invalidate a future claim.
  • Business Details: Information about your limited company.
  • Financial Details: Your salary and dividend income to justify the level of cover.

In some cases, especially for larger cover amounts or if you have pre-existing health conditions, the insurer may request a medical screening, a GP report, or a nurse medical. This is a standard part of the underwriting process.

Step 4: Setting Up the Discretionary Trust

This is a non-negotiable step. The policy must be placed into a discretionary trust at the outset. The insurance provider will supply the necessary trust forms as part of the application pack.

  • You (the director) will be the "Settlor" - the person creating the trust.
  • You will appoint "Trustees" - these are the people you trust to manage the policy and distribute the payout according to your wishes. It's common to appoint your spouse, adult children, or a professional like a solicitor. You can also be a trustee yourself.
  • You will name "Beneficiaries" - these are the people you want to receive the money (e.g., your spouse, civil partner, children).

The process is typically straightforward, involving filling out a form and having it signed. Your broker will guide you through this to ensure it's completed correctly.

Relevant Life Plans vs. Personal Life Insurance vs. Group Life Schemes

Understanding the differences between the main types of life cover is key to making an informed decision.

FeatureRelevant Life Plan (RLP)Personal Life InsuranceGroup Life Scheme
Who Pays?The limited company.The individual (from post-tax income).The company.
Tax-Deductible?Yes, for the company.No.Yes, for the company.
Benefit-in-Kind?No. Not a P11D benefit.Not applicable.No. Not a P11D benefit.
Payout IHT Liable?No (held in a trust).Potentially, unless written in trust.No (held in a trust).
Who is it for?Individual directors/employees of small businesses.Any individual.Groups of employees in a larger business.
Portability?Can often be converted to a personal plan if you leave.Fully portable as it's a personal contract.Cover ceases when you leave the employer.
UnderwritingIndividually underwritten.Individually underwritten.Often 'free cover limits' with no medicals.

In short, a Relevant Life Plan offers the tax advantages of a Group Life scheme but on an individual basis, making it the perfect solution for directors and key employees of SMEs.

Beyond Relevant Life: Other Essential Protection for Company Directors

A Relevant Life Plan is a fantastic tool for protecting your family, but protecting your business is equally important. As a director, your value extends beyond your personal life; your absence could have a devastating financial impact on the company you've built.

Here are other tax-efficient, company-paid insurance policies to consider:

Key Person Insurance

What would happen to your business if you, or another crucial member of your team, were to die or become seriously ill? Could the business survive the loss of revenue, the disruption, or the cost of finding a replacement?

  • What it is: A life and/or critical illness policy taken out by the company on a 'key' individual.
  • How it works: If the key person dies or is diagnosed with a specified critical illness, the policy pays a lump sum to the company.
  • What it covers: The funds can be used to cover lost profits, recruit a replacement, repay business loans, or simply provide a cash injection to reassure lenders and suppliers during a difficult period.
  • Tax Treatment: Premiums are often a tax-deductible expense if the policy is purely to cover a loss of profits (the rules can be complex, so advice is essential).

According to a 2022 survey by Legal & General, 51% of businesses said they would cease trading within a year if they lost a key person. This highlights the critical need for this type of protection.

Shareholder Protection Insurance

If you run a business with one or more other director-shareholders, have you considered what would happen if one of you were to die?

Without a formal agreement, the deceased's shares would pass to their beneficiaries via their will. This could mean your new business partner is their spouse or child, who may have no interest or experience in running the company. They might want to sell the shares, but to whom? Or they might want to be involved, leading to potential conflict and paralysis.

  • What it is: A combination of life insurance policies and a legal agreement. Each shareholder takes out a life policy on the other shareholders, often written in trust.
  • How it works: On the death of a shareholder, the policy pays out to the surviving shareholders. This provides them with the cash to buy the deceased's shares from their estate at a pre-agreed price.
  • The Result: The surviving shareholders retain full control of the business, and the deceased's family receives fair market value for their shares in cash. It's a clean and fair solution for everyone.

Executive Income Protection

While a Relevant Life Plan covers death, what about long-term illness or injury? Statutory Sick Pay is minimal, and as a director, a prolonged absence could mean your income stops entirely.

  • What it is: An income protection policy paid for by the limited company, for the benefit of a director or employee.
  • How it works: If you are unable to work due to illness or injury, the policy pays a regular monthly income to the company. The company then pays this to you as salary via PAYE.
  • Tax Treatment: The premiums are a tax-deductible business expense. The benefit paid to the company is treated as trading income, but this is offset when it's paid out as salary, which is a deductible expense. The director pays income tax and NI on the salary they receive, just like a normal salary.
  • Benefit: It provides a far more tax-efficient way to secure long-term sick pay compared to a personal income protection plan, where premiums are paid from post-tax income.

A comprehensive business protection strategy often involves a combination of these policies. At WeCovr, we specialise in helping directors build a tailored protection portfolio that covers personal, business, and shareholder risks in the most tax-efficient way.

Wellness and Health: Proactive Steps for Company Directors

Insurance is a crucial safety net, but the best-case scenario is never having to use it. As a director, your health is your most valuable asset. The pressures of running a business can take their toll, so prioritising your well-being is not an indulgence—it's a core business strategy.

The Office for National Statistics (ONS) has consistently shown that work-related stress, depression, or anxiety is a leading cause of work-related ill health. For business leaders, the stakes are even higher.

Managing Stress

  • Set Boundaries: The "always-on" culture is a recipe for burnout. Define clear working hours and protect your personal time.
  • Delegate Effectively: You don't have to do everything. Trust your team and empower them to take on responsibility.
  • Practice Mindfulness: Even 10 minutes of daily mindfulness or meditation can significantly reduce stress levels and improve focus.

Nutrition for Performance

Your brain needs high-quality fuel. Long days and skipped meals can impair your decision-making and energy.

  • Avoid Processed Foods: Focus on whole foods—fruits, vegetables, lean proteins, and complex carbohydrates.
  • Stay Hydrated: Dehydration can cause fatigue and "brain fog." Keep a water bottle on your desk at all times.
  • Track Your Intake: Understanding your calorie and nutrient intake is the first step to improving it. To support our clients on their wellness journey, WeCovr provides complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app. It's a simple way to take control of your diet and fuel your body and mind for success.

The Power of Sleep

Sleep is not a luxury; it's a biological necessity. Consistent lack of sleep impairs cognitive function, memory, and emotional regulation.

  • Aim for 7-9 hours per night.
  • Create a Routine: Go to bed and wake up at the same time each day, even on weekends.
  • Wind Down: Avoid screens (phones, tablets, TVs) for at least an hour before bed. The blue light can interfere with the production of melatonin, the sleep hormone.

By investing in your health, you are directly investing in the resilience and longevity of your business. It makes you a lower risk for insurers, potentially leading to lower premiums, and a more effective leader for your company.

Conclusion: A Smarter Way to Protect What Matters Most

For company directors in the UK, the Relevant Life Plan is more than just life insurance; it's a powerful financial planning tool. It allows you to provide comprehensive protection for your family, extracting value from your company in an exceptionally tax-efficient manner. The potential savings compared to a personal policy are simply too significant to ignore.

By transforming a personal expense into a tax-deductible business cost, you reduce your Corporation Tax bill and avoid personal income tax and National Insurance on the premiums. Coupled with an Inheritance Tax-free payout, it represents one of the most effective ways to secure your family's future.

However, navigating the world of business protection—from Relevant Life Plans to Key Person and Shareholder Protection—requires specialist knowledge. The rules are nuanced, and the choice of provider and policy structure can have long-term consequences.

This is where seeking independent, expert advice is invaluable. A specialist broker like WeCovr can analyse your unique personal and business circumstances, compare the entire market to find the most suitable and cost-effective solutions, and guide you through the application and trust process from start to finish.

Protecting your family and your business is one of the most important financial decisions you will ever make. Don't leave it to chance. Take advantage of the smart, tax-efficient strategies available to you as a limited company director.

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

No. Provided the plan meets HMRC's conditions, the premiums paid by the company are not treated as a benefit-in-kind. This means the director or employee does not need to declare it on their P11D form and does not pay any personal income tax or National Insurance on the value of the premiums. This is one of its most significant tax advantages.

Can a sole trader get a Relevant Life Plan?

Unfortunately, no. Relevant Life Plans are specifically designed for employees of a business, and this requires an employer-employee relationship. Sole traders and equity partners in a partnership do not qualify as they are not employees of their business. They would need to take out a personal life insurance policy.

What happens to the policy if my company is dissolved?

If the limited company that pays the premiums is closed down, the policy will typically lapse. However, most providers include a 'continuation option'. This allows the director to take over the policy personally, without the need for further medical underwriting, within a specific timeframe (e.g., 30-90 days). You would then be responsible for paying the premiums from your personal, post-tax income.

How much life insurance cover can I get with a Relevant Life Plan?

The amount of cover is typically based on a multiple of your total annual remuneration, which includes both your PAYE salary and any dividends you receive from the company. Insurers' rules vary, but multiples can be as high as 25 or even 30 times your remuneration, depending on your age. For example, a 40-year-old with a total remuneration of £80,000 could potentially get cover of around £2 million.

Do I need a medical exam to get a Relevant Life Plan?

Not always. The need for a medical exam depends on several factors: the amount of cover you are applying for, your age, and your answers to the health and lifestyle questions on the application form. For lower levels of cover and younger, healthy applicants, a medical exam is often not required. If you are older or applying for a very high sum assured, the insurer may request a nurse screening or a report from your GP as part of their standard underwriting process.

Is Relevant Life Cover the same as 'death in service'?

Yes, in effect, it is. 'Death in service' is the general term for a benefit that pays out if an employee dies while employed by a company. A Group Life scheme is the version for larger companies covering multiple employees. A Relevant Life Plan is the version designed for individual employees, making it a form of 'death in service' cover for directors and key staff in smaller businesses that are too small for a group scheme.

Sources

  • Department for Transport (DfT): Road safety and transport statistics.
  • DVLA / DVSA: UK vehicle and driving regulatory guidance.
  • Association of British Insurers (ABI): Motor insurance market and claims publications.
  • Financial Conduct Authority (FCA): Insurance conduct and consumer information guidance.

Related tools

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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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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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