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Lifes Unseen Safety Net Future Proofing You

WeCovr Editorial Team · experienced insurance advisers
Last updated Feb 20, 2026
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TL;DR

It’s for pursuing passions, building businesses, raising families, and creating memories. Yet, for many of us, a quiet hum of anxiety about the future can undermine this pursuit. These aren't questions of pessimism; they are questions of pragmatism.

Key takeaways

  • The Health Challenge: According to Cancer Research UK, an estimated 1 in 2 people in the UK born after 1960 will be diagnosed with some form of cancer during their lifetime. The British Heart Foundation reports that there are around 100,000 hospital admissions each year due to heart attacks in the UK. These aren't just statistics; they are our friends, family, and colleagues.
  • The Work Challenge: Long-term sickness is a major cause of financial hardship. ONS figures from late 2024 showed that over 2.8 million people were out of work due to long-term sickness, a record high. For the self-employed, freelancers, and small business owners, there's no employer sick pay to fall back on.
  • The Financial Squeeze: Statutory Sick Pay (SSP) in the UK stands at £116.75 per week (for the 2024/25 tax year). Ask yourself: could your household survive on just over £460 a month? For most, this wouldn't even cover the mortgage or rent, let alone bills and food.
  • Shorter-Term Payouts: These policies typically pay out for a maximum of 1, 2, or 5 years per claim, rather than until retirement. This makes them more affordable.
  • Simpler Underwriting: The application process can be more straightforward for those in riskier occupations who might find standard IP more complex or expensive to secure.

Lifes Unseen Safety Net Future Proofing You

Life is for living. It’s for pursuing passions, building businesses, raising families, and creating memories. Yet, for many of us, a quiet hum of anxiety about the future can undermine this pursuit. What if I get sick? What if I can’t work? How will my family manage financially?

These aren't questions of pessimism; they are questions of pragmatism. In the UK today, the financial and health landscape is more complex than ever. While we have the incredible NHS, record-high waiting lists can mean long delays for treatment. The cost of living continues to challenge household budgets, and the safety net of state benefits is often far less than what families need to maintain their standard of living.

This article is your definitive guide to understanding and building your personal safety net. It’s about transforming financial anxiety into financial resilience, allowing you to focus on what truly matters: living a full, vibrant, and purpose-driven life.

The Modern Reality: Why a Safety Net is Non-Negotiable

We often think "it won't happen to me," but the statistics paint a sobering picture of modern life in the UK. Understanding these realities is the first step toward proactive protection.

  • The Health Challenge: According to Cancer Research UK, an estimated 1 in 2 people in the UK born after 1960 will be diagnosed with some form of cancer during their lifetime. The British Heart Foundation reports that there are around 100,000 hospital admissions each year due to heart attacks in the UK. These aren't just statistics; they are our friends, family, and colleagues.
  • The Work Challenge: Long-term sickness is a major cause of financial hardship. ONS figures from late 2024 showed that over 2.8 million people were out of work due to long-term sickness, a record high. For the self-employed, freelancers, and small business owners, there's no employer sick pay to fall back on.
  • The Financial Squeeze: Statutory Sick Pay (SSP) in the UK stands at £116.75 per week (for the 2024/25 tax year). Ask yourself: could your household survive on just over £460 a month? For most, this wouldn't even cover the mortgage or rent, let alone bills and food.

This isn't about fear-mongering. It's about acknowledging the risks so we can intelligently mitigate them. The good news is that a robust, tailored safety net is more accessible and affordable than you might think.

Your Financial First Aid Kit: Income Protection and Personal Sick Pay

If your ability to earn an income is your most valuable asset, then protecting it should be your number one priority. This is where Income Protection and Personal Sick Pay come in.

Income Protection (IP): Your Monthly Salary Lifeline

Income Protection is widely regarded by financial experts as the bedrock of any protection plan. It’s designed to do one thing brilliantly: replace a significant portion of your monthly income if you're unable to work due to any illness or injury.

How does it work?

  • Pays a Regular Income: Instead of a one-off lump sum, it pays a monthly, tax-free benefit.
  • Covers Up to 70% of Your Gross Salary: This is designed to cover your essential outgoings without disincentivising a return to work.
  • Long-Term Support: You can choose a policy that pays out until you recover, retire, or the policy term ends—whichever comes first. This can provide support for years, or even decades, if you suffer a serious, life-altering condition.
  • The 'Deferred Period': This is a pre-agreed waiting period before the payments start. It can range from 4 weeks to 52 weeks. The longer the deferred period you choose, the lower your monthly premiums will be. You can align this with any sick pay you receive from your employer.

Example in Action: Sarah, a 35-year-old marketing manager earning £50,000 a year, takes out an Income Protection policy. She chooses a deferred period of 13 weeks to match her employer's full sick pay period. A year later, she is diagnosed with a serious back condition requiring surgery and a long recovery, leaving her unable to work for 9 months. After her 13-week deferred period, her policy starts paying her a tax-free income of £2,500 per month. This allows her to pay her mortgage, cover her bills, and focus entirely on her recovery without the stress of financial collapse. (illustrative estimate)

Personal Sick Pay: Short-Term Cover for Hands-On Professionals

For certain professions, a different type of cover is often more suitable. Personal Sick Pay is a form of short-term income protection, particularly popular with tradespeople (electricians, plumbers, builders), nurses, and others in physically demanding or higher-risk roles.

Why is it different?

  • Shorter-Term Payouts: These policies typically pay out for a maximum of 1, 2, or 5 years per claim, rather than until retirement. This makes them more affordable.
  • Simpler Underwriting: The application process can be more straightforward for those in riskier occupations who might find standard IP more complex or expensive to secure.
  • Faster Access to Funds: Often available with very short deferred periods (even day one or one week), which is crucial for self-employed individuals who feel the financial impact of being off work immediately.
FeatureComprehensive Income ProtectionPersonal Sick Pay
Payout DurationCan pay out until retirement ageTypically 1, 2, or 5 years per claim
Best ForProfessionals, office workers, long-term securityTradespeople, self-employed, manual workers
Deferred PeriodFlexible (4 to 52 weeks)Often shorter (1 to 13 weeks)
CostHigher, for more comprehensive coverMore affordable, for short-term needs
Definition of IncapacityOften 'Own Occupation' (strongest definition)Can be 'Suited' or 'Any' Occupation

For a freelancer or a self-employed electrician, losing even a week's income is a major blow. Personal Sick Pay bridges that critical gap, ensuring the bills get paid while they get back on their feet.

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Facing the Unthinkable: Critical Illness Cover (CIC)

While Income Protection shields your monthly income, Critical Illness Cover is designed to provide a significant, tax-free lump sum if you are diagnosed with a specific, life-altering medical condition.

The financial impact of a serious illness goes far beyond a loss of earnings. There are often hidden costs:

  • Making adaptations to your home (e.g., a wheelchair ramp).
  • Paying for private treatment or specialist therapies to speed up recovery.
  • Allowing a partner to take time off work to care for you.
  • Clearing debts like a mortgage, credit cards or loans to reduce financial pressure.

How does it work? A CIC policy lists a number of defined medical conditions. If you are diagnosed with one of these conditions and survive for a short period (typically 14 days), the policy pays out the full sum assured.

The 'big three' conditions covered by every policy are:

  1. Cancer (specific types and severities)
  2. Heart Attack (of a specified severity)
  3. Stroke (resulting in permanent symptoms)

However, modern comprehensive policies cover 50, 100, or even more conditions, including things like multiple sclerosis, major organ transplant, kidney failure, and Parkinson's disease.

The Importance of Definitions: The devil is in the detail. The quality of a CIC policy is determined by how it defines its conditions. This is where expert advice is invaluable. A cheaper policy might have very strict definitions, making it harder to claim. A broker can help you navigate these complexities to find a policy with robust and fair definitions.

Many policies now also include partial payments for less severe conditions, such as an early-stage cancer that doesn't meet the full payout definition. This provides a financial boost when you might need it most.

Protecting the Whole Family: A key feature of most modern CIC policies is the inclusion of Children's Critical Illness Cover at no extra cost. This provides a smaller lump sum (e.g., £25,000) if your child is diagnosed with one of the specified conditions. This can be a lifeline for parents, allowing them to take time off work to be with their child during treatment without financial worry. (illustrative estimate)

Protecting Your Legacy: Life Insurance & Family Income Benefit

Life insurance is perhaps the most well-known form of protection. Its purpose is simple but profound: to provide a financial payout to your loved ones when you die. This money can help them clear a mortgage, cover funeral costs, and provide for their future living expenses.

Level Term and Decreasing Term Assurance

The most common types of life insurance are 'Term' policies, which cover you for a fixed period (e.g., 25 years, to match your mortgage).

  • Level Term Assurance (illustrative): The payout amount (sum assured) remains the same throughout the policy term. If you have £200,000 of cover and die at any point during the term, your beneficiaries receive £200,000. This is ideal for covering an interest-only mortgage or providing a lump sum for family living costs.
  • Decreasing Term Assurance (Mortgage Protection): The payout amount reduces over time, broadly in line with a repayment mortgage. Because the potential payout decreases, the premiums are lower than for level term cover. Its sole purpose is to ensure the mortgage is paid off.

Family Income Benefit (FIB): A Different Approach to Legacy

For many young families, the idea of their partner receiving a huge lump sum of £300,000 can be daunting. How should it be invested? How long will it last? (illustrative estimate)

Family Income Benefit offers an elegant and often more affordable solution. Instead of a one-off lump sum, it pays out a regular, tax-free monthly or annual income from the point of claim until the end of the policy term.

How it works: James and Chloe, both 30, have two young children. They take out a 20-year FIB policy for £2,000 a month. If James were to die 5 years into the policy, Chloe would receive £2,000 every month for the remaining 15 years. This provides a steady, manageable income to replace his salary and cover the family's costs until the children are older. (illustrative estimate)

FeatureLump Sum Life Insurance (Level Term)Family Income Benefit (FIB)
PayoutOne large, tax-free lump sumA regular, tax-free income
PurposePay off large debts (mortgage), create an investment potReplace a lost monthly salary, cover ongoing family costs
BudgetingRecipient must manage and invest a large sumEasier to budget, works like a salary
CostCan be more expensive for a large lump sumOften more affordable, especially for young families

FIB is a powerful tool for protecting your family's lifestyle in a way that is easy to manage and budget-friendly.

Beyond the Basics: Specialist Protection for Every Ambition

Your protection needs evolve as your life and career progress. For business owners, directors, and those planning their estate, standard products may not be enough.

For Company Directors & Business Owners

Your business is not just a job; it's a significant asset that supports you, your family, and your employees.

  • Key Person Insurance: Imagine your business losing its top salesperson, its technical genius, or its visionary leader. Key Person Insurance protects a business against the financial impact of losing a crucial member of the team to death or critical illness. The business takes out the policy, pays the premiums, and receives the payout. This cash injection can be used to recruit a replacement, cover lost profits, or reassure lenders and investors.
  • Executive Income Protection: This is a highly tax-efficient way for a limited company to provide income protection for its directors. The company pays the premiums, which are typically classed as an allowable business expense. If the director is unable to work, the benefit is paid to the company, which then distributes it to the director via PAYE. It's a valuable company benefit that protects its most important people.

For Savvy Estate Planners

  • Gift Inter Vivos (GIV) Insurance: Inheritance Tax (IHT) is a complex area. When you gift a significant asset (like money or property) to someone, it is known as a Potentially Exempt Transfer (PET). If you die within 7 years of making this gift, it may become subject to IHT. A GIV policy is a specialised life insurance plan designed to cover this potential tax liability. It's a 7-year decreasing term policy, where the cover amount reduces in line with the tapering IHT liability on the gift. This ensures your beneficiaries receive the full value of your gift, without an unexpected tax bill.

The Health & Wellness Connection: More Than Just Insurance

The modern protection industry has evolved. Insurers now recognise that it's better to help customers stay healthy than to simply pay out when they get sick. This has led to an explosion in added-value benefits.

Many life and health insurance policies now come with a suite of wellness services, including:

  • Free 24/7 access to a virtual GP.
  • Mental health support and counselling sessions.
  • Discounts on gym memberships and fitness trackers.
  • Annual health MOTs and check-ups.
  • Second medical opinion services.

This shift towards proactive health is a philosophy we champion at WeCovr. We believe that supporting our clients' wellbeing is paramount. That's why, in addition to finding you the best policy, we provide our clients with complimentary access to our AI-powered calorie tracking app, CalorieHero, helping you take positive, proactive steps towards better health every single day.

The Ultimate Health Accelerator: Private Medical Insurance (PMI)

While protection insurance provides a financial safety net, Private Medical Insurance (PMI) provides a healthcare safety net. With NHS waiting lists for elective treatment remaining at historically high levels, PMI gives you and your family fast access to private diagnosis, specialists, and treatment.

PMI can help you:

  • Bypass Queues: Get seen and treated faster.
  • Choose Your Specialist: Select the consultant and hospital that's right for you.
  • Access Advanced Treatments: Gain access to drugs and therapies not yet available on the NHS.
  • Enjoy Private Facilities: Recover in the comfort of a private room.

For an entrepreneur or self-employed individual, getting back to work quickly isn't a luxury; it's a necessity. PMI, working in tandem with an Income Protection policy, creates the ultimate resilience package: the IP covers your finances while the PMI speeds up your physical recovery.

How to Build Your Safety Net: A Practical Guide

Building your protection portfolio can seem daunting, but it can be broken down into simple, manageable steps.

  1. Assess Your Needs: What are you protecting? A mortgage? Your family's lifestyle? Your business? Make a list of your monthly outgoings and financial commitments.
  2. Review Your Budget: Be realistic about what you can afford. Protection is a marathon, not a sprint. It's better to have a slightly smaller amount of cover that you can comfortably maintain than a huge policy you cancel after a year.
  3. Understand the Policies: Take time to learn the difference between Income Protection, Critical Illness, and Life Insurance. Don't be afraid to ask questions about the definitions and exclusions.
  4. Don't Go It Alone - Seek Expert Advice: The UK protection market is vast, with dozens of providers and hundreds of policy variations. Navigating this landscape to find the best value and the most suitable cover can feel complex.

This is where working with an expert independent broker like us at WeCovr is so beneficial. We don't work for one insurer; we work for you. We use our expertise and market knowledge to compare plans from all the UK's leading insurers, ensuring you get the right cover, with the right features, at the most competitive price. We handle the paperwork and translate the jargon, making the process simple and stress-free.

Your future is too important to leave to chance. By understanding the risks and exploring the solutions, you can weave an invisible safety net that provides not just financial security, but priceless peace of mind. You can transform the "what-ifs" from a source of anxiety into a catalyst for action, empowering you to live your most vibrant, unburdened, and truly resilient life.


Do I need a medical examination to get life insurance?

Generally, for many people, the answer is no. For standard levels of cover, insurers can often make a decision based on the health and lifestyle questions you answer on the application form. However, if you are older, applying for a very large amount of cover, or have pre-existing health conditions, the insurer may request a GP report, a nurse screening (a simple check of your height, weight, blood pressure, and a blood/urine sample), or a full medical examination. This is all paid for by the insurer. Being honest and thorough on your application is the most important thing.

What happens if my health or lifestyle changes after I take out a policy?

Once your protection policy (like life insurance or critical illness cover) is in force, the terms and premiums are guaranteed. This means that if you later take up a risky hobby or your health deteriorates, your cover remains in place and your premiums will not increase, as long as you were truthful at the time of your application. The only time you might need to inform your insurer is if you change to a higher-risk occupation for certain types of cover like income protection, but this will be detailed in your policy documents.

Are protection insurance payouts taxed in the UK?

For the vast majority of personal protection policies, the answer is a clear no. Payouts from Income Protection, Critical Illness Cover, and Life Insurance are paid free of UK income tax and capital gains tax. However, it's important to consider Inheritance Tax (IHT). A life insurance payout will form part of your legal estate and could be subject to IHT. To avoid this, it's highly recommended to write most life insurance policies into a simple trust. This is a straightforward process that a good adviser can help you with, and it ensures the money goes directly to your chosen beneficiaries quickly and outside of the probate process.

Is it really worth it? Do insurers actually pay out?

This is a very common and understandable concern, but the perception is very different from the reality. The UK insurance industry has one of the best payout records in the world. According to the Association of British Insurers (ABI), in 2023, the industry paid out over £7 billion in protection claims, supporting millions of individuals and families. The vast majority of claims are paid successfully. For example, 97.4% of all individual life insurance, critical illness and income protection claims were paid. The small percentage of claims that are declined are almost always due to 'non-disclosure' – where the customer failed to provide accurate information about their health or lifestyle at the application stage. This is why honesty and accuracy when applying are so critical.

Can I have more than one protection policy?

Yes, absolutely. It's very common and often advisable to have a portfolio of different policies that serve different purposes. For example, you might have:
  • A decreasing term life policy to cover your repayment mortgage.
  • A level term life policy or Family Income Benefit to provide for your family's living costs.
  • An Income Protection policy to protect your salary.
  • A Critical Illness policy to provide a lump sum for immediate financial needs upon diagnosis of a serious condition.
A specialist adviser can help you build a cohesive and cost-effective plan that layers these different types of cover to provide comprehensive protection without unnecessary overlap.

Sources

  • Office for National Statistics (ONS): Mortality and population data.
  • Association of British Insurers (ABI): Life and protection market publications.
  • MoneyHelper (MaPS): Consumer guidance on life insurance.
  • NHS: Health information and screening 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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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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