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Relevant Life Insurance for Husband and Wife Director Teams

WeCovr explains how husband and wife director teams can double their tax efficiency with two separate Relevant Life Insurance policies, securing their families' futures in the most cost-effective way possible in the UK.

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

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Relevant Life Insurance for Husband and Wife Director Teams

TL;DR

WeCovr explains how husband and wife director teams can double their tax efficiency with two separate Relevant Life Insurance policies, securing their families' futures in the most cost-effective way possible in the UK.

Key takeaways

  • Relevant Life Insurance is a tax-efficient death-in-service benefit for directors, paid for by the limited company.
  • By setting up two separate policies, one for each spouse, director teams can double the tax savings available.
  • Premiums are typically an allowable business expense, reducing the company's Corporation Tax bill.
  • The policy is not a P11D benefit-in-kind, meaning no extra personal income tax for the directors.
  • The payout is made via a discretionary trust, keeping it separate from the business and the director's estate for IHT purposes.

How to double your tax efficiency when both spouses run the limited company

For husband and wife teams who co-direct a limited company, you share the risks, the responsibilities, and the rewards. You are the driving force behind your business. But have you considered how to protect your family's financial future in the most tax-efficient way possible?

Many director duos arrange personal life insurance, paying for it from their post-tax income. While this provides essential protection, it overlooks a powerful, HMRC-approved strategy that could save you thousands of pounds every year.

The solution lies in Relevant Life Insurance. By setting up two separate Relevant Life policies—one for each director—paid for by your limited company, you can effectively double the tax efficiency of your family protection.

This isn't a loophole; it's a legitimate and highly effective method for directors to secure significant life cover. The premiums are treated as a business expense, while the benefits flow directly to your family, tax-free.

In this definitive guide, we will explore exactly how this strategy works, the substantial savings you can make, and the step-by-step process for putting this robust protection in place for both you and your spouse.

What is Relevant Life Insurance? A Deep Dive for Company Directors

Relevant Life Insurance is a type of death-in-service policy designed for a single employee. It provides a lump-sum payout to the employee's family or financial dependants if the person covered dies while employed by the company.

For directors of a limited company, you are also employees. This means you can establish a Relevant Life policy for yourself, paid for by the business.

Here are the core features:

  • Owned by the Business: The policy is taken out and paid for by your limited company.
  • For the Employee's Family: Unlike Key Person insurance, which protects the business, a Relevant Life policy is designed solely to benefit the employee's (the director's) family.
  • Uses a Trust: The policy is always written into a discretionary trust from the outset. This is a crucial legal requirement that ensures the payout goes directly to the nominated beneficiaries (e.g., your spouse and children) and is not treated as part of your estate for Inheritance Tax (IHT) purposes.
  • Pure Protection: It is a term life insurance policy. It pays out if the person covered dies within the policy term. There is no investment element or cash-in value.

How Relevant Life Insurance Differs from Personal Life Insurance

The end result is the same: your family receives a tax-free lump sum. However, the way the policy is funded is radically different and far more efficient for a company director.

Let's compare the two side-by-side.

FeaturePersonal Life InsuranceRelevant Life Insurance
Who Pays?You, the individual.Your limited company.
Funding SourceYour post-tax income (salary/dividends).Company's pre-tax revenue.
Tax on PremiumsPremiums are paid after you've paid Income Tax, National Insurance, and Corporation Tax.Premiums are typically an allowable business expense, reducing Corporation Tax.
Benefit-in-Kind?Not applicable.No. It's not a P11D benefit, so no extra personal tax to pay.
The PayoutPaid to your estate or into a trust.Paid into a specialist trust, outside your estate and the business.
Cost EfficiencyCan be up to 50% more expensive for a higher-rate taxpayer compared to a Relevant Life plan.Highly tax-efficient, offering significant cost savings.

As you can see, funding your life insurance through the business via a Relevant Life policy removes several layers of tax, making your money work much harder.

The Unbeatable Tax Advantages of Relevant Life Cover Explained

The financial efficiency of a Relevant Life policy stems from three key tax treatments approved by HMRC. When you set up a policy for yourself and another for your spouse, you benefit from these advantages twice over.

1. Corporation Tax Relief for the Business

The monthly or annual premiums paid by your limited company are generally treated as an allowable business expense. This means they can be offset against your company's profits, reducing its Corporation Tax liability.

  • Example: If your company's annual Relevant Life premiums for two directors total £2,000, and your Corporation Tax rate is 25%, the business saves £500 in tax (£2,000 x 25%). The net cost to the business is only £1,500.

2. No Income Tax or National Insurance for the Director

Unlike a company car or private medical insurance, a Relevant Life policy is not considered a "benefit-in-kind". This means you do not need to declare it on your P11D form, and you will not pay any additional personal Income Tax or National Insurance contributions on the value of the premiums.

This is a huge advantage. If the company were to increase your salary or dividend to cover a personal policy, that extra income would be subject to tax. With Relevant Life, the benefit is provided tax-free.

3. Tax-Free Payout for the Family

Because the policy is written into a discretionary trust, any payout on death is paid directly to your nominated beneficiaries. It does not become part of your estate, so it is not subject to a potential 40% Inheritance Tax charge. Furthermore, the lump sum is not treated as income and is therefore free of Income Tax.

This three-pronged tax efficiency makes Relevant Life cover the single most cost-effective way for directors to arrange life insurance.

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A Tale of Two Directors: How Husband and Wife Teams Maximise Savings

Let's illustrate the power of this "doubling up" strategy with a real-world scenario.

Meet Michael and Jessica. They are both 40 years old, non-smokers in good health, and are the sole directors and shareholders of a successful consultancy business, M&J Creative Ltd.

They decide they each need £500,000 of life insurance until age 67 to protect each other and their two children.

Option 1: Two Personal Life Insurance Policies

Michael and Jessica could take out two personal life insurance policies. To pay the premiums, they need to extract money from their business as dividends.

  1. Company Profit Needed: Let's assume the combined cost of their two personal policies is £100 per month (£1,200 per year). To have £1,200 in their personal bank accounts to pay this, they first need to pay Corporation Tax on the company profits. Assuming a 25% rate, the business needs to generate £1,600 in profit to leave £1,200 post-tax (£1,600 - 25% = £1,200).
  2. Personal Tax: They then draw this £1,200 as a dividend. If they are higher-rate taxpayers, they will pay Dividend Tax at 33.75%. This means they lose a further £405 in tax (£1,200 x 33.75%).
  3. True Cost: To get £1,200 of net, spendable income, they have effectively used £1,600 of company profit and paid £405 in personal tax. The total cost to them and their business is significant. The effective "cost" of their £1,200 annual premium is much higher once all taxes are accounted for.

Option 2: Two Relevant Life Insurance Policies

Michael and Jessica decide to use their limited company to arrange two separate Relevant Life policies.

  1. Company Pays Premiums: The company pays the £100 per month premium (£1,200 per year) directly to the insurer.
  2. Corporation Tax Relief: This £1,200 premium is an allowable business expense. At a 25% Corporation Tax rate, this reduces the company's tax bill by £300 (£1,200 x 25%).
  3. Net Cost to Business: The actual cost to the business is therefore only £900 per year (£1,200 - £300).
  4. Personal Tax: There is no benefit-in-kind, so Michael and Jessica pay £0 in additional Income Tax or National Insurance.

The Savings Comparison

MetricOption 1: Personal PoliciesOption 2: Two Relevant Life PoliciesThe Saving
Annual Premiums£1,200£1,200-
Corporation Tax ImpactCompany pays tax before money is takenPremiums reduce the company's tax bill£300 saved
Personal Tax ImpactDividends are taxed (e.g., £405)£0 (not a benefit-in-kind)£405 saved
Effective Annual Cost~£2,005 (initial profit + personal tax)£900 (net cost to business)~£1,105 saved per year

By setting up two separate Relevant Life policies, Michael and Jessica save over £1,100 every single year. Over the 27-year term of their policies, this equates to a total saving of nearly £30,000. They get the exact same level of cover for their family, but at a fraction of the true cost.

Setting Up Your Policies: A Step-by-Step Guide

Arranging Relevant Life cover is a straightforward process, but it requires precision, especially regarding the trust documentation. Working with an expert broker like WeCovr ensures every step is handled correctly.

  1. Assess Your Needs for Each Director:

    • How much cover? The amount of cover is typically a multiple of the director's total remuneration (salary, dividends, and benefits). Insurers often allow multiples of up to 25-30x for younger directors, decreasing with age. It's vital to calculate a sum that would clear debts, cover future living costs, and provide a secure future for the surviving family members.
    • How long? The policy term usually runs until the director's planned retirement age, for example, 65 or 68.

  2. Obtain Quotes from the Whole Market:

    • An independent broker can compare premiums and policy features from all major UK insurers. This ensures you get the most competitive price for your specific circumstances (age, health, lifestyle, and cover amount). At WeCovr, we provide a comprehensive market comparison at no extra cost.

  3. Complete the Application(s):

    • You will need to complete a separate application for each director. This will include questions about your health, lifestyle (e.g., smoking, alcohol consumption), occupation, and any hazardous hobbies.
    • Honesty and accuracy are paramount. Failure to disclose relevant information could invalidate a future claim.

  4. The Underwriting Process:

    • The insurer's underwriters will assess the risk based on your application. They may request a medical report from your GP or ask you to attend a mini-screening with a nurse (including height, weight, blood pressure, and a blood/urine sample).
    • Our role as your broker is to manage this process, liaising with the insurer on your behalf and keeping you informed.

  5. Establish the Discretionary Trusts:

    • This is the most critical step. Each policy must be placed into a specific Relevant Life discretionary trust. The insurer provides the standard trust deed.
    • You (as directors on behalf of the company) will be the 'settlors' or 'trustees'.
    • You will name the 'beneficiaries' – the people you want to receive the money. This is typically your spouse, children, and potentially other family members.
    • The trust paperwork must be completed correctly and signed by all parties. An error here could have serious tax consequences. We guide our clients through this process meticulously to ensure it's watertight.

Once the insurer has approved the applications and the trusts are in place, the cover can begin. The limited company then starts paying the premiums, and the tax benefits commence immediately.

The Discretionary Trust: The Engine of Your Relevant Life Plan

We cannot overstate the importance of the trust. Without it, a Relevant Life policy simply cannot work as intended.

Here’s why it’s the legal and financial engine of the plan:

  • Keeps the Payout out of the Business: When a claim is made, the insurer pays the money to the trust, not the limited company. This is crucial. If the money went into the business bank account, it would become a company asset, accessible to creditors and subject to Corporation Tax.
  • Keeps the Payout out of Your Estate: The trust is a separate legal entity. The payout belongs to the trust, not you personally. This means it is not included in your estate when calculating Inheritance Tax (IHT). With IHT at 40% on assets above the threshold, this can save your beneficiaries hundreds of thousands of pounds.
  • Ensures the Right People Get the Money: The trust deed and your letter of wishes guide the trustees on who to pay the benefit to. It ensures your family is looked after according to your intentions.
  • Speeds up the Payout: Because the payout bypasses your estate, your family doesn't have to wait for the lengthy and complex process of probate to be completed. The trustees can access and distribute the funds much more quickly, providing vital financial support when it's needed most.

Setting up a Relevant Life policy without a correctly executed trust is a fundamental error that negates all the key benefits.

Common Pitfalls and How to Avoid Them

While the concept is powerful, there are common mistakes director teams make. Awareness is the first step to avoidance.

  1. Mistake: Taking Out a Joint Policy

    • Some directors ask for a 'joint life, first death' Relevant Life policy. This is not possible. The legislation requires that each policy covers a single life. For a husband and wife team, this means two separate policies are essential. This is also how you "double up" on the tax benefits.

  2. Mistake: Getting the Trust Paperwork Wrong

    • Failing to sign the trust deed, naming the wrong beneficiaries, or not having it witnessed correctly can invalidate the trust. This could result in the payout being made to the business or your estate, triggering huge and unnecessary tax bills.
    • Solution: Work with an expert adviser who will check and double-check all documentation before the policy goes live.

  3. Mistake: Exceeding HMRC's "Wholly and Exclusively" Test

    • The premiums are only a valid business expense if the director's total remuneration package (including the life cover) is commercially justifiable for the work they do. If the level of cover is deemed "excessive" by HMRC, the tax relief could be challenged.
    • Solution: Stick to the insurer's standard income multiples. These are designed to be reasonable and fall well within HMRC's guidelines. A broker can advise on the maximum available for your age and income.

  4. Mistake: Not Classifying Directors as Employees

    • To be eligible, a director must be an employee of the company, receiving a salary (even a nominal one via PAYE). The policy cannot be used for non-employee shareholders or partners in an LLP (who require different solutions).

  5. Mistake: Forgetting to Review Your Cover

    • Your financial needs change. Your income may increase, you may have more children, or your mortgage may grow. It's vital to review your cover levels every few years to ensure they remain adequate. As your remuneration increases, you will likely be eligible for a higher level of cover.

Relevant Life Cover vs. Other Business Protection

It's easy to confuse Relevant Life with other forms of business insurance. Understanding the distinction is key to building a comprehensive protection portfolio.

Protection TypePrimary PurposeWho Gets the Payout?Is it a Business Expense?
Relevant Life InsuranceTo provide a tax-free lump sum for the director's family.The director's family/dependants (via a trust).Yes, typically.
Key Person InsuranceTo protect the business from the financial impact of losing a key director/employee.The limited company.Yes, if it meets HMRC rules.
Shareholder ProtectionTo provide funds for the surviving shareholders to buy the deceased's shares from their estate.The surviving shareholders/the company (via a trust).Premiums are not usually a business expense.

As a husband and wife director team, you may need all three:

  • Two Relevant Life policies to protect your respective families.
  • Key Person insurance to ensure the business has funds to manage the disruption if one of you were to pass away or suffer a critical illness.
  • Shareholder Protection to create a clear succession plan, ensuring the surviving spouse has the funds to buy the other's shares from their estate, maintaining control of the business.

An expert protection adviser can help you structure a complete plan that protects both your business and your family.

Can We Add Critical Illness Cover to a Relevant Life Policy?

This is a frequently asked question. Generally, you cannot add critical illness cover to a Relevant Life policy.

The specific legislation that gives Relevant Life its favourable tax status applies only to "death benefits". Adding critical illness cover would make it a different type of benefit, and it would likely become a taxable P11D benefit-in-kind, defeating the object of the exercise.

However, protecting yourself against the financial impact of a serious illness is just as important as life insurance. For directors, there are two excellent solutions:

  1. Personal Critical Illness Cover: You can take out a separate, personal critical illness policy alongside your Relevant Life plans. While you would pay for this from post-tax income, it provides a vital tax-free lump sum if you are diagnosed with a specified condition like cancer, heart attack, or stroke.
  2. Executive Income Protection: This is the ideal partner policy to Relevant Life.

Executive Income Protection: The Perfect Partner to Relevant Life Cover

Just as Relevant Life protects your family from the financial consequences of your death, Executive Income Protection protects you, your family, and your business from the financial consequences of long-term illness or injury.

  • What it is: A policy paid for by your limited company that provides a regular monthly income if you are unable to work due to sickness or an accident.
  • How it works: It pays a percentage of your gross earnings (typically up to 80%) to the business, which then pays it to you via PAYE.
  • Tax Efficiency: Like Relevant Life, the premiums are an allowable business expense for the company. The income paid out is taxed as normal salary, but it allows you to continue receiving an income and for the business to potentially hire a replacement without financial strain.

For a husband and wife director team, having two Executive Income Protection policies in place provides a rock-solid financial safety net. It ensures that if one of you is unable to work for months or even years, your household income doesn't disappear, and the business can continue to function.

At WeCovr, we help directors find the best combination of Relevant Life and Executive Income Protection to create a truly comprehensive and tax-efficient protection strategy. We also provide our clients with complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app, to support their ongoing health and wellbeing—because proactive health management is the first line of defence.

What Happens if We Sell or Close the Business?

Your business journey may change over time. You might sell the company, retire, or simply close it down. What happens to your Relevant Life policies?

You typically have two options:

  1. Cancel the Policies: If the company that owns the policy ceases to exist, the cover will end. There is no cash-in value, so no money is returned.
  2. Convert the Policy (Portability): Most modern Relevant Life policies include a 'continuation option' or 'portability'. This allows you to convert the business-owned policy into a personal policy without any further medical underwriting. You would then take over paying the premiums personally. This is an incredibly valuable feature, as it guarantees you can keep your life cover even if your health has changed since you first took it out.

When choosing a policy, it's vital to check that it includes a robust continuation option. Our advisers always prioritise policies with this feature for our director clients.

A Note on Whole of Life Insurance

When discussing life-long protection, it's important to be clear about different types of policies. You may have heard of "Whole of Life" insurance, and it's essential to understand how modern plans work.

In today's UK protection market, the vast majority of whole of life policies sold for estate planning are pure protection plans with no cash-in value.

  • They are designed to provide a guaranteed payout whenever you die.
  • They are transparent and increasingly affordable.
  • Their primary use is for covering a future Inheritance Tax (IHT) bill or leaving a guaranteed legacy.
  • Crucially, if you stop paying the premiums, the cover ceases, and you get nothing back.

At WeCovr, we focus on comparing these straightforward, guaranteed pure protection plans.

This is very different from older types of whole of life policies, such as with-profits or investment-linked plans.

  • Those complex policies combined life cover with an investment component.
  • Part of your premium paid for the insurance, and the rest was invested.
  • They were designed to build a 'surrender value' over many years.
  • However, they were often expensive, opaque, and their performance depended on the underlying investments. Surrendering a policy in the early years often resulted in getting back less than you had paid in.

For most directors seeking tax-efficient family protection, the fixed-term, high-value cover of a Relevant Life plan is far more suitable and cost-effective than a whole of life policy.

Why Choose WeCovr for Your Director Life Insurance?

Choosing the right protection for you and your spouse is a critical financial decision. As a leading FCA-regulated protection broking firm, WeCovr is perfectly placed to help you navigate the market and secure the best possible solution.

  • Specialist Expertise: We live and breathe protection insurance for directors and business owners. We understand the nuances of Relevant Life, Executive Income Protection, and the complex interplay of business and personal planning.
  • Whole-of-Market Access: We are not tied to any single insurer. We compare policies and premiums from all the major UK providers to find the optimal cover for your specific needs and budget.
  • Tax-Efficiency Focus: Our advice is centred on finding the most tax-efficient structures available, saving you and your business money without compromising on the quality of your protection.
  • Hassle-Free Process: We handle the paperwork, chase the insurers, and manage the trust documentation, making the entire process as smooth and simple as possible for you.
  • No Broker Fees: Our service is funded by the insurer you choose, meaning you get expert, independent guidance at no extra cost to you.

For husband and wife director teams, Relevant Life Insurance isn't just a "nice to have"; it's a financial planning masterstroke. It allows you to leverage your limited company structure to provide first-class protection for your family at the lowest possible net cost.

Don't leave your family's future to chance or pay more than you need to. Let's start the conversation today.


Is the payout from a Relevant Life policy taxable?

No, the payout from a correctly structured Relevant Life policy is not typically subject to tax. Because the policy is written into a discretionary trust, the lump sum is paid directly to the beneficiaries. It does not form part of the deceased's estate, so it is free from Inheritance Tax. The lump sum is also not considered income, so it is free from Income Tax and Capital Gains Tax.

What is the maximum amount of cover I can get with a Relevant Life policy?

The maximum amount of cover is determined by the insurer and is based on a multiple of your total annual remuneration (including salary, dividends, and any P11D benefits). These multiples vary by age. For example, a director under 40 might be eligible for up to 30 times their remuneration, while a director over 60 might be limited to 15 times. An adviser can calculate the maximum available for you and your spouse from across the market.

Do both husband and wife directors need to work full-time to qualify?

No, there is generally no strict requirement for a director to work full-time to be eligible for a Relevant Life policy. However, they must be a legitimate employee of the company receiving remuneration that is commercially justifiable for their role and contributions. Insurers will assess each application on its merits. As long as both spouses are official directors and employees on the company's payroll, they should both be eligible for cover.


Take the first step towards doubling your tax efficiency and securing your family's future. Contact WeCovr today for a free, no-obligation comparison of Relevant Life Insurance quotes.

Sources

  • HMRC (Her Majesty's Revenue and Customs)
  • Financial Conduct Authority (FCA)
  • Association of British Insurers (ABI)
  • Office for National Statistics (ONS)
  • Gov.uk

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

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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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1. Complete a brief form
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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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Who Are WeCovr?

WeCovr is an insurance specialist for people valuing their peace of mind and a great service.

👍 WeCovr will help you get your private medical insurance, life insurance, critical illness insurance and others in no time thanks to our wonderful super-friendly experts ready to assist you every step of the way.

Just a quick and simple form and an easy conversation with one of our experts and your valuable insurance policy is in place for that needed peace of mind!