WeCovr

Relevant Life Insurance for Property Developers and Landlords

WeCovr explains how UK property developers and landlords can secure tax-efficient life insurance through their limited company using a Relevant Life Plan, providing a lump sum payout to their family.

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

Editorial standards

We research and update guides regularly, keep commercial relationships separate from editorial rankings, and publish content for information only rather than personal advice.

Rated Excellent on Google & Trustpilot
900,000+ policies arranged
Expert guidance
Relevant Life Insurance for Property Developers and...

TL;DR

WeCovr explains how UK property developers and landlords can secure tax-efficient life insurance through their limited company using a Relevant Life Plan, providing a lump sum payout to their family.

Key takeaways

  • A Relevant Life Plan is a company-paid death-in-service benefit for directors and employees.
  • Premiums are typically a tax-deductible business expense, offering significant savings over personal policies.
  • The payout is paid via a trust, making it free from income tax, national insurance, and inheritance tax.
  • It's ideal for property SPVs and management companies too small for a group life scheme.
  • Cover is usually a multiple of your total remuneration (salary, dividends, and bonuses).

Structuring death-in-service benefits through your SPV or property management company

For property developers and landlords in the UK, building a portfolio is a masterclass in calculated risk, leverage, and long-term vision. You create tangible assets and income streams. Yet, the most valuable asset in your business is often you—your expertise, your relationships with lenders, and your drive. If you were to pass away unexpectedly, the financial stability of your family could be instantly jeopardised, even with a substantial property portfolio.

Mortgages on buy-to-let properties, development loans, and personal debts don't disappear. Without your income and management, your family could be forced into a fire sale of assets at the worst possible time, eroding the wealth you worked so hard to build.

This is where a Relevant Life Plan becomes one of the most powerful and tax-efficient tools in a property professional's financial planning toolkit. It allows your limited company—whether it's a Special Purpose Vehicle (SPV) for your rental properties or your main development company—to provide comprehensive life insurance for you, with the payout going directly to your loved ones, tax-free.

This definitive guide explains everything property developers, landlords, and portfolio owners need to know about structuring death-in-service benefits through their company. We'll explore how these plans work, their immense tax advantages over personal cover, and how to set them up correctly to protect your family's future.

What is Relevant Life Insurance? A Plain English Guide

A Relevant Life Plan is a standalone, single-life 'death-in-service' insurance policy. It's taken out and paid for by a limited company to provide a tax-free lump sum benefit to an individual employee's or director's family if they die during the policy term.

Think of it as the private version of the death-in-service benefits commonly offered by large corporations. Because most property entrepreneurs operate through small limited companies, they don't have the scale for a traditional group life scheme. Relevant Life Insurance was specifically designed to fill this gap for small and medium-sized enterprises (SMEs).

Here’s the mechanism in simple terms:

  1. The Company Pays: Your property SPV or trading company pays the monthly or annual premiums for the policy.
  2. You Are Covered: The policy insures your life for a pre-agreed lump sum.
  3. A Trust is Used: The policy is placed into a discretionary trust from day one. You nominate your family members or dependants as potential beneficiaries.
  4. Tax-Free Payout: If you pass away while the policy is active, the insurer pays the claim directly to the trust. The trustees (often family members or a professional) then distribute the funds to your beneficiaries, completely free from inheritance tax, income tax, and national insurance.

Crucially, it is a term insurance policy. This means it provides cover for a specific period, for example, until you plan to retire or until your children are financially independent. It has no cash-in value at any time; if the term ends and no claim has been made, the cover ceases and you get nothing back. Its sole purpose is pure protection.

The Tax-Efficiency Advantage: A Game-Changer for Company Directors

The single most compelling reason for a property developer or landlord to choose a Relevant Life Plan over a standard personal policy is the exceptional tax efficiency. When structured correctly, it allows you to use pre-tax company profits to fund your family's financial protection.

Let's break down the savings. If you take out a personal life insurance policy, you must first extract money from your company, typically as salary or dividends. This money is subject to income tax, and if taken as salary, employee's and employer's National Insurance Contributions (NICs). Only after these taxes are paid can you use your net income to pay the policy premiums.

With a Relevant Life Plan, the company pays the premium directly. This payment is typically treated as an allowable business expense, meaning it can be offset against the company's corporation tax bill.

Here’s a clear comparison:

FeatureRelevant Life PlanPersonal Life Insurance
Who Pays?Your Limited CompanyYou, the individual
Funding SourceGross (pre-tax) company profitNet (post-tax) personal income
Corporation TaxPremiums are usually an allowable business expenseNot applicable
Benefit-in-Kind (P11D)No, it's not a taxable benefit for the employeeNot applicable
National InsuranceNo employer's or employee's NICs on premiumsPayable on salary used to fund premiums
Income TaxNo income tax for the employee on the premiumsPayable on salary/dividends used to fund premiums
Inheritance Tax (IHT)Payout is outside the estate (paid via trust)Payout forms part of estate unless written in trust

A Worked Example: The Real-World Saving

Imagine Sarah, a 40-year-old property developer and higher-rate taxpayer. She is the sole director of her development company. She needs £750,000 of life cover until age 65. The premium is £60 per month (£720 per year).

Option 1: Personal Life Insurance

  • To get £720 of post-tax money to pay the premium, Sarah needs to take a dividend from her company.
  • As a higher-rate taxpayer, the dividend tax is 33.75%.
  • To have £720 in her hand, she must declare a dividend of roughly £1,087. (£1,087 - 33.75% tax = £720).
  • The company pays this £1,087 from its post-tax profits.

Option 2: Relevant Life Plan

  • Sarah's company pays the £720 premium directly.
  • The company treats this £720 as a business expense, reducing its corporation tax bill. At the current 25% rate, this saves £180 in tax (£720 x 25%).
  • The net cost to the business is just £540 (£720 - £180).
  • Sarah pays no personal income tax or NI on this benefit.

In this scenario, providing the same level of cover through a Relevant Life Plan costs the business £540, compared to a cost of £1,087 from pre-tax profits for a personal plan. This represents a saving of over 50%. The tax savings are substantial and accumulate year after year.

Get Tailored Quote

Is Your Property Business Eligible for a Relevant Life Plan?

While incredibly beneficial, Relevant Life policies must meet specific criteria set by HM Revenue & Customs (HMRC) to qualify for their favourable tax treatment.

Who Can Be Covered?

The policy must cover an employee or director of a business. This makes it perfect for:

  • Directors of property development companies.
  • Directors of property management companies.
  • Directors of SPVs set up to hold buy-to-let properties.

The key is that the person being insured must be on the company's payroll and receive a salary (PAYE), even if it is a nominal amount. This establishes a clear employer-employee relationship, which is essential for the plan to be considered a legitimate business expense.

Who is Not Eligible?

  • Sole traders and partners in a traditional partnership or LLP are not eligible. This is because there is no legal distinction between the individual and the business. They must use personal life insurance.
  • Individuals who are only shareholders and do not draw a salary are also generally not eligible.

HMRC's Qualifying Conditions

For a policy to be treated as a Relevant Life Plan, it must satisfy several conditions:

  1. Purpose: The plan must provide a lump sum benefit payable on the death of the employee or director during the term of the policy.
  2. No Other Benefits: It cannot include other benefits like critical illness cover or have a surrender value. (Note: Some insurers allow terminal illness benefit to be included, which pays out on diagnosis of a condition with a life expectancy of less than 12 months).
  3. Beneficiaries: The benefits must be for the employee's family or dependants. The policy cannot be set up to benefit the company itself (that would be Key Person insurance).
  4. Trust: The policy must be written into a discretionary trust from the outset.

An expert protection adviser, like the team at WeCovr, will ensure that the policy is structured correctly to meet these conditions, securing the tax benefits and giving you peace of mind.

A Real-World Scenario: How a BTL Landlord Protects Their Family

Let's look at a practical example to see how this works for a typical buy-to-let investor.

The Client:

  • Name: Mark
  • Age: 48
  • Occupation: Property landlord and director of 'M-Properties Ltd'.
  • Business: His SPV owns a portfolio of eight buy-to-let properties with a total mortgage debt of £1.2 million.
  • Remuneration: He pays himself a salary of £12,570 and takes dividends of £50,000 per year. His total remuneration is £62,570.
  • Family: He is married with two teenage children.

The Problem: Mark handles all aspects of the portfolio: tenant management, maintenance, and financing. His wife has a separate career and no experience in property management. If Mark were to die, she would be left with a complex business to run and significant debts to service. The rental income might cover the mortgage interest, but there would be no profit left for her and the children to live on. She would likely have to sell the properties, potentially in a down market, to clear the debt.

The Solution: A Relevant Life Plan Mark speaks to an adviser at WeCovr. We assess his situation and recommend a Relevant Life Plan.

  1. Calculating the Cover: Insurers typically offer cover up to a multiple of total annual remuneration. For someone Mark's age, this is often up to 20 times remuneration.

    • Cover Amount = 20 x £62,570 = £1,251,400.
    • This amount is coincidentally perfect to clear his entire business mortgage debt.

  2. Setting up the Policy:

    • 'M-Properties Ltd' is the policy applicant and pays the premium.
    • Mark is the life insured.
    • The policy is written into a discretionary trust, with his wife and children named as potential beneficiaries.

  3. The Financials:

    • The annual premium for a healthy 48-year-old non-smoker for £1.25M of cover until age 70 is approximately £1,900.
    • 'M-Properties Ltd' pays this premium directly. The company saves £475 in Corporation Tax (£1,900 x 25%).
    • The net cost to the business is only £1,425.
    • Mark pays no personal tax on this benefit.

The Outcome: Tragically, Mark dies in a car accident five years later. The insurer pays the £1,251,400 claim directly to the trust.

  • The payout is not part of Mark's estate and is therefore completely free of Inheritance Tax.
  • It is received by the trust without the lengthy delays of probate.
  • The trustees (his wife and a trusted friend) use the funds to pay off the entire £1.2M mortgage portfolio.
  • The remaining £51,400 provides an immediate cash buffer for the family.
  • Mark's wife is now the owner of eight unencumbered properties, generating a substantial net rental income for her and the children to live on.

Mark's foresight completely secured his family's financial future and preserved the property portfolio he spent his life building.

Structuring Your Policy: Cover Levels, Trusts, and Premiums

Getting the details right is crucial for a Relevant Life Plan to be effective. Here are the key components to consider.

How Much Cover Can You Get?

The maximum amount of life cover available is determined by the insurer and is calculated as a multiple of your total annual remuneration. This includes:

  • Salary (PAYE)
  • Dividends
  • Bonuses
  • Benefits-in-Kind (P11D value)

The multiple applied usually depends on your age:

Age BracketTypical Maximum Multiple of Remuneration
Under 40Up to 30x
40 - 49Up to 20x
50 - 59Up to 15x
60+Up to 10x

Note: These are indicative multiples and can vary between insurers. An adviser can confirm the exact amounts available.

It is vital to have clear accounting records to evidence your remuneration, especially dividends, as insurers will require this during the application process. For property developers with fluctuating profits, insurers may be willing to consider an average of the last two or three years' remuneration.

The Crucial Role of the Discretionary Trust

Unlike personal life insurance, where using a trust is an optional (though highly recommended) step, a Relevant Life Plan must be written into a trust from day one. This is a non-negotiable HMRC requirement.

What is a trust? A trust is a simple legal arrangement that separates the legal ownership of an asset (the policy) from the beneficial ownership (the right to the payout).

  • Settlor: The company that creates the trust.
  • Trustees: People you appoint to manage the trust (e.g., your spouse, adult children, a solicitor). They legally own the policy.
  • Beneficiaries: The people you want to benefit from the payout (e.g., your spouse, children, grandchildren).

Why is it so important?

  1. Avoids Inheritance Tax (IHT): Because the policy is owned by the trust, not you, the payout is not considered part of your estate when you die. This can save your family 40% of the entire sum assured in IHT.
  2. Avoids Probate: The insurer pays the claim money directly to the trustees, bypassing the often lengthy and complex probate process. This means your family gets access to the funds much faster, often in weeks rather than months or years.
  3. Control and Flexibility: A discretionary trust gives your trustees the flexibility to distribute the funds as needed among the named beneficiaries, according to your wishes (which you should document in a 'letter of wishes').

Setting up the trust is a standard part of the application process, and a good adviser will handle all the paperwork for you at no extra cost.

Premiums: What to Expect

The cost of your policy will depend on standard insurance risk factors:

  • Your Age: The younger you are, the cheaper the premium.
  • Your Health: Your medical history and any pre-existing conditions.
  • Your Lifestyle: Whether you smoke or have hazardous hobbies.
  • Cover Amount: The size of the lump sum.
  • Policy Term: How long you want the cover to last (e.g., until age 65 or 75).

You will generally have a choice between Guaranteed Premiums, which remain fixed for the entire policy term, and Reviewable Premiums, which start cheaper but are reviewed by the insurer every 5 or 10 years and will likely increase.

For budgeting certainty, we at WeCovr often recommend guaranteed premiums. While they may seem slightly more expensive initially, they protect you from significant price hikes in the future, especially as you get older.

Relevant Life vs. Other Business Protection: A Clear Comparison

It’s easy to confuse Relevant Life with other forms of business insurance. Understanding the difference is key to ensuring you have comprehensive protection for both your family and your business.

ProductWho is Insured?Who Pays?Who Receives the Payout?Primary Purpose
Relevant LifeEmployee/DirectorThe CompanyEmployee's Family (via trust)Family Welfare
Key PersonKey Employee/DirectorThe CompanyThe CompanyBusiness Continuity
ShareholderBusiness OwnerThe Company/OwnersOther Business OwnersOwnership Succession

Key Person Insurance

This protects the business from the financial impact of losing a key individual. If a star property sourcer or a developer with unique planning expertise were to die, the company could suffer lost profits or project delays. A Key Person policy pays a lump sum to the company to help it weather the storm, recruit a replacement, or repay debt. It is designed to keep the business afloat.

Shareholder Protection

This is an agreement between business owners. Each owner takes out a life policy on the other owners. If one owner dies, the policy pays out to the surviving owners, giving them the funds to buy the deceased's shares from their estate. This ensures the remaining owners retain control of the business and prevents the shares from passing to family members who may not want or be able to run the company.

A well-advised property professional might have all three:

  • Relevant Life to protect their family.
  • Key Person to protect the company's profitability.
  • Shareholder Protection to ensure a smooth transition of ownership.

The Whole of Life Insurance Distinction

When planning for the long term, you may also come across Whole of Life insurance. It's important to understand how modern policies work, as they differ significantly from older, more complex plans.

In modern UK protection planning, most whole of life policies are pure protection with no cash-in value. They are designed to provide a guaranteed payout whenever you die, for as long as you keep paying the premiums. If you stop paying your premiums, the cover ends, and you get nothing back.

These modern plans are transparent, increasingly affordable, and highly effective for two main goals:

  1. Guaranteed Legacy: Leaving a fixed sum to your children or a charity.
  2. Inheritance Tax (IHT) Planning: Providing funds to help your estate pay a future IHT bill, often used with a trust.

This is a world away from older investment-linked or with-profits whole of life policies. With those plans, part of each premium paid for life cover, and the rest was invested. They were designed to build a 'surrender value' over time. However, these policies were often complex, expensive, and their value depended entirely on investment performance, which was not guaranteed. Surrendering them early often resulted in getting back less than you paid in.

At WeCovr, we focus on the straightforward, modern pure protection plans, helping you compare guaranteed cover from across the market to meet your specific legacy or IHT planning needs.

How WeCovr Helps Property Professionals Secure the Right Cover

Navigating the world of business protection can be complex, but you don't have to do it alone. As specialist protection brokers, we live and breathe this market. We understand the unique challenges faced by property developers and landlords.

Our service is designed to make the process simple, clear, and effective:

  • Expert, No-Obligation Advice: We take the time to understand your business structure, your financial situation, and your family's needs before recommending a solution.
  • Whole-of-Market Comparison: We are not tied to any single insurer. We compare policies and prices from all major UK providers to find you the most suitable cover at the most competitive price.
  • Hassle-Free Application: We handle all the paperwork for you, from the initial application to the crucial trust forms, ensuring everything is set up correctly to secure the tax advantages.
  • Ongoing Support: We're here for the life of your policy. If your circumstances change, we can review your cover to ensure it still meets your needs. As part of our commitment to our clients' wellbeing, we also provide complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app.
## Frequently Asked Questions (FAQ)

Is the payout from a Relevant Life Plan really tax-free?

Yes. For the beneficiaries, the lump sum payout from a correctly structured Relevant Life Plan is free of income tax, national insurance, and, crucially, inheritance tax. This is because the policy is owned by a trust, so the proceeds are not considered part of the deceased's legal estate.

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

If the company that pays the premium is closed down or you leave the business, the cover will cease. In some cases, the policy may have a 'continuation option' that allows you to convert it into a personal policy without further medical underwriting, but you would have to start paying the premiums personally. This is a key feature to check with your adviser.

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

No. To qualify for its tax-efficient status under HMRC rules, a Relevant Life Plan can only pay out on death (or terminal illness). If you want critical illness cover paid for by your business, you would need to consider a separate product like Executive Income Protection, which can provide a replacement income if you are unable to work due to illness or injury.

Why can't a sole trader get Relevant Life Insurance?

A Relevant Life Plan relies on the legal distinction between an employer (the limited company) and an employee (the director). A sole trader is legally the same entity as their business, so there is no employer to pay the premium on behalf of an employee. Sole traders must use personal life insurance to protect their families.

Secure Your Legacy Today

A Relevant Life Plan is more than just an insurance policy; it's a declaration that your family's security is paramount. It allows you to leverage the success of your property business to build a firewall of protection around your loved ones in the most tax-efficient way possible.

Don't leave your family's future to chance. Contact WeCovr today for a free, no-obligation conversation and personalised quote. Let our expert advisers help you protect what you've worked so hard to build.

Sources

  • Financial Conduct Authority (FCA)
  • GOV.UK
  • HM Revenue & Customs (HMRC)
  • Association of British Insurers (ABI)
  • Office for National Statistics (ONS)

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.

Family protection check

Measure your family’s protection gap, then get the right life cover quote

Start with the score to see whether your family would face a real financial shortfall before moving on to life cover options.

Get My Free Protection ScoreGet Life Cover Quotes

Check what happens if someone dies too soon

See whether debt, dependants and mortgage risk are covered

Move into tailored life cover options after the score

📚 Recommended reads

Life Insurance Guide

Read

Best Life Insurance Providers

Read

Term Life Insurance Guide

Read

Get your score

Your next best move

Get your score in minutes, then decide what kind of protection help would be most useful.

1

Score your household protection

See how well your current setup protects dependants, debt and major commitments.

2

Find the shortfall

Know whether life cover, critical illness or income protection is the actual missing piece.

3

Continue to tailored life cover

If life cover is the gap, continue to tailored life cover options.

Get My Free Protection ScoreGet Life Cover Quotes

What you get

A quick view of your current protection position

A clearer idea of where the biggest gaps may be

A direct route to tailored help if you want it

See Plans

Related tools

Life Insurance CalculatorOpen →
Critical Illness CalculatorOpen →
Inheritance Tax CalculatorOpen →
Policy in Trust SaverOpen →
Back to Life Insurance & Protection hub

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.

Flagship guides

Protection Score
Read now →
Life Insurance UK 2026 Buyer's Guide
Read now →
Term Life Insurance UK: Complete Guide
Read now →
Whole of Life Insurance UK Explained
Read now →

Explore insurance hubs

PMI Guides Hub
Life Insurance Guides Hub
Income Protection Guides Hub

Related guides

Getting Relevant Life Cover for Older Directors
Getting Relevant Life Cover for Older Directors
Read more →
How to Set Up a Business Trust for Relevant Life Insurance
How to Set Up a Business Trust for Relevant Life Insurance
Read more →
How to Set Up Relevant Life Insurance for a New Tech Startup
How to Set Up Relevant Life Insurance for a New Tech Startup
Read more →
How to Set Up Relevant Life Insurance for a Recruitment Agency
How to Set Up Relevant Life Insurance for a Recruitment Agency
Read more →
Relevant Life Cover for Architecture Firm Directors
Relevant Life Cover for Architecture Firm Directors
Read more →
Relevant Life Cover for Financial Advisors and Accountants
Relevant Life Cover for Financial Advisors and Accountants
Read more →

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:

Our Group Is Proud To Have Issued 900,000+ Policies!

We've established collaboration agreements with leading insurance groups to create tailored coverage
Working with leading UK insurers
Allianz Logo
Ageas Logo
Covea Logo
AIG Logo
Zurich Logo
BUPA Logo
Aviva Logo
Axa Logo
Vitality Logo
Exeter Logo
WPA Logo
National Friendly Logo
General & Medical Logo
Legal & General Logo
ARAG Logo
Scottish Widows Logo
Metlife Logo
HSBC Logo
Guardian Logo
Royal London Logo
Cigna Logo
NIG Logo
CanadaLife Logo
TMHCC Logo

How It Works

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

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.

Learn more

...

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!