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Relevant Life Cover for IT Contractors The Ultimate Tax Hack

WeCovr helps UK limited company directors and IT contractors secure tax-efficient Relevant Life Cover, a legitimate business expense providing life insurance for your family. Our expert FCA-regulated brokers compare the market to find you the best deal.

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

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Relevant Life Cover for IT Contractors The Ultimate Tax Hack

TL;DR

WeCovr helps UK limited company directors and IT contractors secure tax-efficient Relevant Life Cover, a legitimate business expense providing life insurance for your family. Our expert FCA-regulated brokers compare the market to find you the best deal.

Key takeaways

  • Relevant Life Cover is a tax-deductible life insurance policy paid for by your limited company.
  • Premiums are not a P11D benefit, saving you personal tax and National Insurance.
  • Payouts are made via a trust, typically free from Income Tax and Inheritance Tax.
  • It's a cost-effective way for IT contractors to provide death-in-service benefits for their family.
  • Compared to a personal policy, a Relevant Life Plan can save higher-rate taxpayers over 50% on costs.

How limited company directors can write off life insurance premiums as a business expense

As an IT contractor, you are the master of your own destiny. You leverage specialist skills to command high day rates, enjoy professional autonomy, and build a successful business on your own terms. Yet, this freedom comes at a cost: the absence of a corporate safety net.

Unlike permanent employees, you don't receive a benefits package with sick pay, a pension contribution, or that all-important death-in-service cover. If the worst were to happen, the financial security of your loved ones rests squarely on your shoulders.

Many contractors solve this by purchasing personal life insurance, paying for it from their post-tax income. It's a sensible move, but it's not the most efficient.

What if you could secure comprehensive life insurance for your family, and your limited company could pick up the entire bill as a legitimate, tax-deductible business expense?

This isn't a loophole or a grey area. It's a highly effective, HMRC-compliant financial planning strategy known as Relevant Life Cover. For IT contractors operating as limited company directors, it is arguably the single most powerful tax-saving tool for arranging personal protection.

This definitive guide will explain everything you need to know about Relevant Life Cover: what it is, how it generates significant tax savings, and how you can use it to provide robust financial protection for your family at a fraction of the cost of a personal policy.

What is Relevant Life Cover? A Plain English Guide

In simple terms, Relevant Life Cover is a standalone death-in-service policy for an individual employee. It's life insurance that is paid for by your limited company but is designed to pay out a tax-free lump sum to your family or chosen beneficiaries if you pass away.

Think of it as the death-in-service benefit you might get working for a large corporation like IBM or a major bank, but specifically designed for small businesses — even one-person limited companies.

Because you are an employee (and director) of your own limited company, you can use this structure to your advantage. Your company establishes the policy for you, its valued employee.

Key features of a Relevant Life Policy include:

  • Company-Paid Premiums: The policy is owned and paid for by your limited company directly from the business bank account.
  • Individual Cover: It covers one specific person (you, the director). It is not a group scheme.
  • Family Benefit: The sole purpose is to provide a financial payout for your dependents, not the business itself.
  • Trust-Based: The policy is always written into a special discretionary trust from the very beginning. This is a crucial element that directs the payout and ensures its tax-efficient status.

Relevant Life Cover provides a lump-sum cash payment if the person insured dies or is diagnosed with a terminal illness (and has less than 12 months to live) during the policy term. It provides peace of mind that your mortgage, family living costs, and future plans are financially secure.

The Tax Hack Explained: How Relevant Life Cover Saves You Money

The financial efficiency of Relevant Life Cover is its standout feature. Compared to paying for a personal life insurance policy out of your own pocket, the savings can be substantial, often exceeding 50% for a higher-rate taxpayer.

The savings come from three distinct areas:

1. Corporation Tax Relief

Relevant Life Cover premiums are generally considered an allowable business expense by HMRC. This means your company can deduct the full cost of the premiums from its profits before calculating its Corporation Tax bill.

  • How it works: If your annual premium is £600 and your company's Corporation Tax rate is 25%, the business saves £150 in tax (£600 x 25%). The net cost of the cover to your business is therefore only £450.

2. No P11D Benefit-in-Kind Tax

Normally, when a company pays for a personal benefit for a director (like a company car or private medical insurance), it's treated as a 'benefit-in-kind'. This means the value of the benefit is added to your personal income, and you must pay Income Tax and National Insurance on it.

Relevant Life Cover is a rare and valuable exception. As long as it meets HMRC's conditions, it does not create a benefit-in-kind.

  • The benefit: You, the director, do not have to pay any extra Income Tax or Employee's National Insurance. The company also avoids paying Employer's National Insurance on the premium amount. This is a huge saving compared to having the company pay for other personal insurance policies.

3. Inheritance Tax (IHT) Free Payout

This is where the trust comes in. Because the policy is written into a discretionary trust from day one, the payout upon death is made directly to the trust, not to your business or your personal estate.

  • The result: The lump sum is not considered part of your estate for Inheritance Tax purposes. This means your beneficiaries receive the full amount without a potential 40% IHT deduction. It also means the funds are available to them much faster, as they don't have to wait for the lengthy legal process of probate.

Cost Comparison: Personal Policy vs. Relevant Life Cover

Let's look at a real-world scenario to see the savings in action.

Meet Alex, a 40-year-old IT contractor and director of his own limited company. He is a higher-rate taxpayer and wants £500,000 of life insurance. The underlying monthly premium for this cover is £40.

Here's how the costs stack up:

Table 1: Cost Comparison - Personal Life Insurance vs. Relevant Life Cover

FeatureScenario 1: Personal PolicyScenario 2: Relevant Life Cover
Gross Monthly Premium£40£40
Who Pays?Alex, from his post-tax incomeAlex's Limited Company
Gross Salary/Dividend NeededAlex needs to draw approx. £73 from his company to have £40 net after Corporation Tax & Higher Rate Dividend Tax.*The company pays £40 directly.
Corporation Tax Relief£0The company claims tax relief. At 25%, this is a £10 saving (£40 x 25%).
Personal Tax / NIN/A (paid from net income)£0 (not a benefit-in-kind)
True Monthly Cost~£73 (in gross company earnings)£30 (net cost to the business)
Total Annual Saving-~£516 (£43 per month)

*Calculation: To pay £40 net, a higher-rate taxpayer needs a dividend of ~£59.26 (£59.26 - 33.75% tax = £39.26). For the company to pay a £59.26 dividend, it needs to have earned ~£79 in pre-tax profit (£79 - 25% Corp Tax = £59.25). The figures are simplified for illustration.

As the table clearly shows, by using a Relevant Life policy, Alex can secure the exact same level of cover for his family for a true cost that is less than half of what he would effectively pay for a personal policy.

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Is Relevant Life Cover Right for You? The IT Contractor's Checklist

Relevant Life Cover is a specialist product designed for a specific audience. It's a perfect fit for most IT contractors, but it's important to ensure you meet the criteria.

You are an ideal candidate for Relevant Life Cover if:

✅ You are a director or an employee of a UK limited company (even if you're the only employee).
✅ You receive a salary, dividends, or a combination of both from your company.
✅ You want to provide a financial lump sum for your dependents should you pass away.
✅ Your company is profitable enough to afford the premiums.
✅ Your business is too small to qualify for a full Group Life Insurance scheme (which typically requires 3-5+ employees).

However, Relevant Life Cover is not suitable for:

❌ Sole Traders or traditional Partnerships: As you are not technically an 'employee' of your business, the structure doesn't work. You cannot pay yourself a salary in the same way a limited company director can.
❌ Directors of non-UK based companies.
❌ Individuals seeking business protection: If you want funds to go back into the business to cover lost profits or buy out a deceased director's shares, you need Key Person or Shareholder Protection insurance, not Relevant Life Cover.

If you tick the boxes in the first list, arranging your life insurance this way is one of the most astute financial decisions you can make.

The Mechanics: From Application to Payout

Setting up a Relevant Life policy is a straightforward process, especially with the help of an expert broker like WeCovr. Here is a step-by-step breakdown of how it works.

Step 1: Application and Underwriting

The process starts with an application. Although the company is the policy owner, you, the director, are the life insured. You will need to provide standard information for underwriting, including:

  • Age and gender
  • Health and medical history
  • Lifestyle choices (e.g., smoking, alcohol consumption)
  • Occupation (IT contracting is considered low-risk)
  • The amount of cover you require

The insurer uses this information to calculate your premium. At WeCovr, we help you complete these forms accurately to ensure there are no issues at the point of a claim.

Step 2: Setting the Cover Level

The amount of life insurance you can get is linked to your total annual remuneration from the company. This includes your salary, dividends, and any bonuses.

Insurers apply a multiple to your remuneration, which typically varies by age:

  • Under 40: Up to 25x or 30x remuneration
  • Ages 40-49: Up to 20x remuneration
  • Ages 50+: Up to 15x remuneration

For example, an IT contractor aged 38 earning a £12,000 salary and taking £70,000 in dividends (£82,000 total) could potentially get cover of over £2 million.

Step 3: Establishing the Discretionary Trust

This is a non-negotiable part of the process and is what makes the policy so effective. The Relevant Life policy is placed into a discretionary trust from the outset.

  • What is a trust? A trust is a simple legal arrangement that holds the policy. It appoints 'trustees' (people you trust, such as your spouse, a sibling, or a professional) who are legally responsible for managing the policy and ensuring the payout goes to the 'beneficiaries' (your family).
  • Why is it vital? The trust legally separates the policy from both your business and your personal estate. This ensures the payout is protected from creditors of the business and from Inheritance Tax on your estate.

Our advisers handle all the complex trust paperwork for you, ensuring it is set up correctly from day one to deliver the intended benefits.

Step 4: Paying the Premiums

Your limited company pays the agreed monthly or annual premium to the insurance provider from its business bank account. You must keep records of these payments as a business expense for your accounts.

Step 5 & 6: The Claim and Payout

If you were to pass away during the policy term, the process is clear and efficient:

  1. Claim is Made: Your appointed trustees notify the insurer and initiate the claim.
  2. Payout to Trust: The insurer verifies the claim and pays the tax-free lump sum directly to the trust bank account. This completely bypasses your business and the probate process.
  3. Distribution to Beneficiaries: The trustees then distribute the funds to your nominated beneficiaries according to the instructions you left in your letter of wishes.

This process is typically much faster than waiting for probate, which can take many months, providing your family with funds when they need them most.

Relevant Life Cover vs. The Alternatives: A Strategic Comparison

Understanding how Relevant Life Cover stacks up against other options is key to appreciating its value.

Relevant Life vs. Personal Life Insurance

As we've seen, the main difference is tax efficiency. A personal policy is paid from your net, post-tax income. A Relevant Life policy is paid by your company from pre-tax profits. For the same level of cover, the latter is significantly cheaper.

Relevant Life vs. Group Life Insurance

Group Life schemes are the standard for large companies. They offer a 'death-in-service' benefit to all employees, often without medical underwriting up to a certain level. However, they are typically only available to companies with a minimum number of employees (e.g., 5 or more), making them inaccessible for most IT contractors. Relevant Life Cover fills this gap perfectly, providing the same type of benefit on an individual basis.

Table 2: Feature Comparison of Life Cover Options

FeatureRelevant Life CoverPersonal Life InsuranceGroup Life Scheme
Premium PayerLimited CompanyIndividualCompany
Tax-Deductible?YesNoYes
P11D Benefit?NoN/ANo
Trust Required?Yes, mandatoryOptional, but highly advisedYes, part of scheme
IHT ImpactPayout is outside the estateCan be part of estate unless in trustPayout is outside the estate
PortabilityCan often be converted to a personal policyFully portableCover ceases when you leave the company
Best ForDirectors of small limited companiesSole traders, partnerships, individualsCompanies with 5+ employees

Relevant Life Cover vs. Key Person Insurance: Protecting Family vs. Business

This is a common point of confusion. Both are paid for by the business, but they serve entirely different purposes.

  • Relevant Life Cover is for the benefit of the employee's family. Its purpose is to replace a lost income and provide for dependents. The payout goes to the family via a trust.
  • Key Person Insurance is for the benefit of the business itself. Its purpose is to protect the company from the financial fallout of losing a crucial director or employee. The payout goes directly to the company to cover costs like lost profits, debt repayment, or hiring a replacement.

A well-advised contractor may have both: Relevant Life Cover to protect their family and Key Person Insurance to ensure the business they've built can survive their loss, protecting its value for their estate.

Relevant Life Cover's favourable tax treatment is legislated for in the Income Tax (Earnings and Pensions) Act 2003. To qualify, the policy must adhere to a set of simple but strict rules.

  1. Pure Protection Only: The policy must be a pure life insurance plan. It cannot include other benefits like Critical Illness Cover or have an investment element or surrender value. Adding critical illness would make the premiums a taxable benefit-in-kind.
  2. Sole Purpose: The policy's main purpose must be to provide benefits for the employee's family or dependents in the event of death. It cannot be used as a tax avoidance vehicle.
  3. Term Assurance: It must be a term policy, meaning it runs for a set number of years (e.g., until your planned retirement age) and is not a 'whole of life' policy.
  4. Not Excessive: The level of cover must be reasonable in relation to the director's remuneration package. For a typical contractor, the multiples offered by insurers fall well within these guidelines.

What happens if I close my company or go 'permanent'?

This is a vital consideration for contractors, whose working arrangements can be fluid. If you wind down your limited company or take a permanent role, your company can no longer pay the premiums. What happens next depends on the policy you choose.

Most modern Relevant Life policies include a 'continuation option'. This allows you to take over the policy personally, converting it into a standard personal life insurance plan without the need for further medical underwriting. You would start paying the premiums yourself from your personal bank account.

This is a crucial feature to look for. Our advisers at WeCovr prioritise policies with flexible continuation options, giving you the freedom to adapt as your career evolves.

Beyond Relevant Life: A Holistic Protection Strategy for Contractors

While Relevant Life Cover provides an excellent foundation, it only protects against one risk: death. A truly robust financial plan for a contractor should address the far more likely risk of being unable to work due to illness or injury.

Here's how other protection products fit into the picture:

Executive Income Protection

Just as Relevant Life is the business-paid version of personal life insurance, Executive Income Protection is the business-paid equivalent of personal Income Protection.

  • How it works: Your limited company pays the premiums, which are a tax-deductible business expense. If you're unable to work due to illness or injury, the policy pays a monthly benefit to your company. The company can then continue to pay you a salary, which is taxed in the normal way. It's an exceptionally tax-efficient way to secure a replacement income.

Personal Critical Illness Cover

As you cannot add Critical Illness Cover to a Relevant Life policy without triggering a tax charge, you should consider a separate personal Critical Illness policy. This pays out a tax-free lump sum if you are diagnosed with a specified serious condition like cancer, a heart attack, or a stroke. This money can be used to cover medical bills, adapt your home, or simply reduce financial pressure while you recover.

By combining Relevant Life Cover, Executive Income Protection, and Personal Critical Illness Cover, an IT contractor can replicate—and often improve upon—the comprehensive benefits package offered by a large employer, all in a highly tax-efficient manner.

Why Choose WeCovr for Your Relevant Life Cover?

Navigating the world of business protection can be complex. Choosing a strong fit for your needs and setting up the legal trust correctly is paramount. This is where expert, independent advice is invaluable.

As an FCA-regulated broking firm, WeCovr specialises in helping IT contractors and limited company directors secure the best possible protection.

  • Expert, Independent Advice: We are not tied to any single insurer. We compare policies from across the entire UK market, including leading providers like Aviva, Legal & General, Royal London, and Vitality, to find the plan that best suits your needs and budget.
  • We Handle the Paperwork: Setting up the discretionary trust is the most critical part of the process. Our team handles all the complex trust forms for you, ensuring everything is watertight and compliant from the start.
  • No Broker Fees: Our service is completely free for you to use. We receive a commission from the insurer when your policy is set up, which is already factored into the premium you pay. You pay no more than going direct, but you get our expert guidance and market comparison.
  • Holistic Support: We believe in supporting our clients' overall wellbeing. All WeCovr customers get complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app, to help you stay on top of your health goals.

Relevant Life Cover is a game-changer for IT contractors. It allows you to provide for your family's future with a product that is not only affordable but actively saves you money on tax.

Don't leave your most important financial planning to chance. Let our expert team guide you through the options and help you implement this powerful strategy.

Ready to see how much you could save? Get your free, no-obligation Relevant Life Cover quote from WeCovr today. Our friendly experts are on hand to answer your questions and find an appropriate level of cover for you and your family.

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

No, you cannot add Critical Illness Cover to a Relevant Life policy for it to remain tax-efficient. HMRC rules state the policy must be for pure life insurance (death benefit) only. Adding a critical illness benefit would make the premiums a taxable P11D benefit-in-kind for the director, defeating one of the main advantages of the plan. You should take out a separate personal Critical Illness policy instead.

What happens to my Relevant Life policy if I close my company?

If you close your limited company, it can no longer pay the premiums. Most modern Relevant Life policies contain a 'continuation option', which allows you to convert the policy into a personal one. You would then take over the premium payments yourself. Crucially, this conversion can usually be done without any new medical questions, meaning you keep your cover even if your health has changed. It is vital to ensure this option is included when you first take out the policy.

Is the payout from a Relevant Life policy always tax-free?

Yes, provided it is set up correctly. The policy must be written into a discretionary trust from the start. This ensures the lump sum payout is made directly to the trust, not your business or your personal estate. As a result, the money is paid free from Income Tax and, most importantly, is not part of your estate for Inheritance Tax (IHT) purposes.

How much Relevant Life Cover can an IT contractor get?

The maximum amount of cover is based on a multiple of your total annual remuneration, which includes both your salary and any dividends you take from the company. These multiples vary by age but are generous. For example, a director under 40 might get up to 25 or 30 times their remuneration, while a director over 50 might be limited to 15 times.

Sources

  • Financial Conduct Authority (FCA)
  • GOV.UK (including HMRC guidance)
  • Association of British Insurers (ABI)
  • Office for National Statistics (ONS)
  • Income Tax (Earnings and Pensions) Act 2003

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

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

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Why life insurance and how does it work?

What is Life Insurance?

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

How does it work?

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

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

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

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

Questions to ask yourself regarding life insurance

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

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

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

Benefits offered by income protection, life and critical illness insurance

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

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

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

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

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

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

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

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

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

Types of life insurance policies

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

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

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

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

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

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

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

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

Important Fact!

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

Why is it important to get life insurance early?

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

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

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

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

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

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

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

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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