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Relevant Life Insurance UK

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

Tax-efficient life insurance for company directors and employees For company directors and small business owners in the UK, navigating the world of employee benefits and personal financial planning can be a complex balancing act. You want to provide for your family's future and offer attractive perks to key staff, but you also need to manage your company's finances shrewdly. This is where Relevant Life Insurance emerges as a uniquely powerful and often overlooked solution.

Key takeaways

  • The premiums are paid by your company and are typically treated as a tax-deductible business expense.
  • The premiums are not considered a taxable benefit-in-kind for the employee, saving them income tax and National Insurance.
  • The final payout is made into a trust, meaning it is generally free from Inheritance Tax.
  • Small Businesses: Companies that are too small to qualify for a traditional group life insurance scheme, which often require a minimum of 3-5 employees. The UK's business landscape is dominated by SMEs; at the start of 2023, there were 5.5 million private sector businesses, 99.2% of which were small businesses (0-49 employees). Relevant Life Cover is tailor-made for this vast majority.
  • High-Earning Employees: Directors or key staff who may have substantial group life cover already but are approaching their pension Lifetime Allowance (LTA). Although the LTA charge was removed in April 2024, payouts from most registered group life schemes are still tested against an individual’s available allowances (the new Lump Sum Allowance and Lump Sum and Death Benefit Allowance), potentially impacting pension funds. Relevant Life payouts are entirely separate and do not affect these allowances.

Tax-efficient life insurance for company directors and employees

For company directors and small business owners in the UK, navigating the world of employee benefits and personal financial planning can be a complex balancing act. You want to provide for your family's future and offer attractive perks to key staff, but you also need to manage your company's finances shrewdly. This is where Relevant Life Insurance emerges as a uniquely powerful and often overlooked solution.

At its core, a Relevant Life Policy is a company-funded death-in-service benefit that provides a tax-free lump sum to an employee's loved ones if they pass away. What makes it so compelling, particularly for small and medium-sized enterprises (SMEs), is its exceptional tax efficiency.

Imagine providing substantial life cover for yourself or a key employee where:

  • The premiums are paid by your company and are typically treated as a tax-deductible business expense.
  • The premiums are not considered a taxable benefit-in-kind for the employee, saving them income tax and National Insurance.
  • The final payout is made into a trust, meaning it is generally free from Inheritance Tax.

This "triple-threat" of tax advantages makes it one of the most cost-effective ways for a limited company to arrange life insurance for its people. It's a method of extracting profit from your business in the form of a tangible benefit, without incurring the usual tax liabilities associated with salary or dividends.

This comprehensive guide will explore every facet of Relevant Life Insurance in the UK. We'll break down how it works, who it's for, its significant tax benefits, and how it compares to other forms of protection. Whether you're a director of your own limited company, a high-earning employee, or a business owner looking to reward your team, understanding this policy could be a game-changer for your financial strategy.

What Exactly is Relevant Life Insurance?

A Relevant Life Policy is a standalone, single-life insurance plan. Think of it as a form of 'death in service' benefit, but for an individual rather than a large group. The company takes out the policy on the life of an employee (including a director) and pays the monthly or annual premiums.

If the insured employee dies while the policy is active and they are employed by the company, the policy pays out a lump sum. Crucially, this lump sum is not paid to the company. Instead, it is paid into a discretionary trust, which is then distributed to the employee's chosen beneficiaries, such as their spouse, children, or other family members.

This structure is what sets it apart from other types of business insurance and personal cover. It’s designed specifically for:

  • Small Businesses: Companies that are too small to qualify for a traditional group life insurance scheme, which often require a minimum of 3-5 employees. The UK's business landscape is dominated by SMEs; at the start of 2023, there were 5.5 million private sector businesses, 99.2% of which were small businesses (0-49 employees). Relevant Life Cover is tailor-made for this vast majority.
  • High-Earning Employees: Directors or key staff who may have substantial group life cover already but are approaching their pension Lifetime Allowance (LTA). Although the LTA charge was removed in April 2024, payouts from most registered group life schemes are still tested against an individual’s available allowances (the new Lump Sum Allowance and Lump Sum and Death Benefit Allowance), potentially impacting pension funds. Relevant Life payouts are entirely separate and do not affect these allowances.
  • Protecting Director's Families: For directors who are also the primary shareholders, it offers a tax-efficient way to secure their family's financial future using company funds, rather than post-tax personal income.

Essentially, it's a bridge between corporate finance and personal protection, offering the best of both worlds: a business-funded benefit with a direct, personal payout.

The Key Tax Advantages of a Relevant Life Policy

The financial appeal of Relevant Life Insurance lies in its remarkable tax efficiency. Let's break down the benefits from the perspective of the company, the employee, and the beneficiaries.

For the Company

  1. Corporation Tax Relief: The premiums your company pays for a Relevant Life Policy are generally viewed by HMRC as an allowable business expense. This means they can be offset against your company's corporation tax bill, reducing the net cost of the cover.
  2. No Employer's National Insurance: Unlike a salary increase, the premiums are not subject to Employer's National Insurance contributions (currently 13.8%).

For the Employee

  1. No Benefit-in-Kind (P11D): The premiums paid by the company are not treated as a 'benefit-in-kind'. This is a significant advantage. For most company perks, from a company car to private medical insurance, the employee has to pay income tax on the value of the benefit. With a Relevant Life Policy, they don't.
  2. No Employee's National Insurance: As it's not considered part of their income, the employee does not pay National Insurance contributions on the premiums.

For the Beneficiaries

  1. Free from Inheritance Tax (IHT) (illustrative): Because the policy is written into a discretionary trust from the outset, the payout is made to the trust, not to the deceased's estate. This means it falls outside the estate for IHT purposes. With the current IHT threshold at £325,000 and a tax rate of 40% on anything above that, this can save a family a substantial amount of money.
  2. Faster Payout: By bypassing the estate, the funds also avoid the often lengthy and complex process of probate. The trustees can distribute the money to the beneficiaries much more quickly, providing financial support when it is needed most.

A Cost Comparison: Relevant Life vs. Personal Life Insurance

To truly understand the financial impact, let's look at a simplified example of a company director who is a higher-rate taxpayer (40%).

Assumptions:

  • Illustrative estimate: Life Cover needed: £750,000
  • Illustrative estimate: Monthly premium: £80
  • Illustrative estimate: Company's Corporation Tax Rate: 25% (main rate for profits over £250,000)
FeatureScenario A: Personal Life InsuranceScenario B: Relevant Life Insurance
Who Pays?The DirectorThe Company
Gross Salary/Dividend NeededTo have £80 post-tax, the director needs to draw approx. £133 in gross salary (factoring in 40% income tax and 2% NI).£80 (paid directly by the company)
Annual Cost (Gross)£133 x 12 = £1,596 (cost to the company as salary)£80 x 12 = £960 (cost to the company as premium)
Corporation Tax Savings£1,596 x 25% = £399£960 x 25% = £240
Net Cost to the Company£1,596 - £399 = £1,197£960 - £240 = £720
Total Annual Saving-£477

As the table clearly shows, arranging the cover through a Relevant Life Policy results in a significant annual saving. The company's net cost is lower, and the director has the cover in place without it affecting their personal net income. Over the life of a 20 or 30-year policy, these savings add up to tens of thousands of pounds.

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Who is Eligible for a Relevant Life Plan?

HMRC has specific rules about who can be covered by a Relevant Life Policy for it to qualify for the favourable tax treatment. The fundamental requirement is that there must be an employer-employee relationship.

Eligible Individuals:

  • Company Directors: Salaried directors of a registered limited company in the UK. This is the most common use case.
  • Employees: Any salaried employee of a UK business. This includes part-time staff, as long as they are on the payroll.
  • Charity Employees: Employees of registered charities can also be covered.
  • Members of a Limited Liability Partnership (LLP): This is a key distinction. Only salaried members of an LLP can be covered. Those who are treated as self-employed for tax purposes are not eligible.

Who is NOT Eligible? It's just as important to understand who cannot take out a Relevant Life Policy:

  • Sole Traders: As a sole trader, you are the business. There is no separate legal entity to act as the employer, so you cannot establish the necessary employer-employee relationship with yourself.
  • Equity Partners in a Partnership: Similar to sole traders, equity partners are not considered employees of the partnership.
  • Self-Employed Individuals: If you are a freelancer or contractor operating as a sole trader, this type of cover is not available to you. You would need to look at personal life insurance options.

The key takeaway is that the business paying the premium must be a distinct legal entity from the person being insured, and that person must be on the company's payroll (PAYE). If you're unsure about your employment status, it's always best to seek advice. At WeCovr, our expert advisers can quickly help you determine if a Relevant Life Policy is a suitable option for your business structure.

How Does Relevant Life Insurance Work in Practice?

The process of setting up and claiming on a Relevant Life Policy is straightforward, but it has a few crucial steps that must be followed correctly to ensure the tax benefits are maintained.

Step 1: Application and Underwriting The process begins with the company applying for a policy on the life of an employee. The employee will need to complete an application form, which includes questions about their health, lifestyle, occupation, and family medical history. The insurer uses this information to assess the risk and calculate the premium.

Step 2: The Policy is Placed in Trust This is the most critical step. For the policy to be tax-efficient, it must be written into a discretionary trust from day one. The insurance provider will supply their standard trust documentation.

  • The Settlor: The company is the 'settlor' of the trust (the one creating it).
  • The Trustees: The company appoints trustees. These can be responsible individuals, such as other company directors, family members of the insured, or a professional trustee. They are legally responsible for managing the trust.
  • The Beneficiaries: The employee will complete a 'nomination form' or 'letter of wishes' to guide the trustees on who they want the money to go to. This is a private document and is not legally binding, but trustees will almost always follow these wishes.

Step 3: The Company Pays the Premiums The company pays the premiums directly to the insurer. These payments are recorded as a business expense in the company's accounts.

Step 4: Making a Claim If the insured employee passes away while employed by the company and the policy is active, the trustees will initiate a claim. They will need to provide the insurer with the policy documents and a death certificate.

Step 5: The Payout The insurer pays the claim amount (the sum assured) directly to the trust. Because the money goes to the trust and not the company or the individual's estate, it is protected from creditors of the business and bypasses probate and Inheritance Tax. The trustees then distribute the funds to the beneficiaries as outlined in the letter of wishes.

Comparing Relevant Life Cover with Personal Life and Group Schemes

Choosing the right type of life insurance can be confusing. The table below provides a clear comparison of the three main options available to business owners and employees.

FeatureRelevant Life CoverPersonal Life InsuranceGroup Life Scheme
Who Pays Premium?The company.The individual.The company.
Premium Tax Deductible?Yes, generally.No.Yes.
Benefit-in-Kind for Employee?No.N/ANo.
IHT Liability on Payout?No (paid into trust).Yes (unless in trust).No (paid into trust).
Pension Allowance Impact?No.No.Yes, typically.
UnderwritingFull medical underwriting.Full medical underwriting.Often 'free cover limit' (no underwriting up to a certain level).
PortabilityCan sometimes be converted to a personal plan if employee leaves.Fully portable, owned by individual.Cover ceases when employee leaves the company.
Ideal ForSMEs, company directors, high-earners.Everyone, especially sole traders and self-employed.Businesses with 3-5+ employees wanting a blanket benefit.

This comparison highlights the unique niche that Relevant Life Cover fills. It provides the tax advantages of a group scheme but on an individual basis, making it perfect for the UK's millions of small businesses.

How Much Cover Can You Get?

The amount of life cover (the sum assured) that can be taken out under a Relevant Life Policy is not unlimited. Insurers cap the amount to ensure the policy's primary purpose is protection, not tax avoidance, in line with HMRC guidelines.

The maximum level of cover is typically determined as a multiple of the employee's total financial remuneration from the company. This includes:

  • Basic salary
  • Regular dividends paid in lieu of salary
  • Bonuses (usually an average over the last few years)
  • Benefits-in-kind

The multiple applied usually depends on the employee's age, with younger employees eligible for a higher multiple.

Example Multiples by Age:

Age of EmployeeTypical Maximum Multiple of Remuneration
Up to 39Up to 25x
40 - 49Up to 20x
50 - 59Up to 15x
60+Up to 10x

Note: These are illustrative figures. Each insurer has its own specific limits and calculation methods. Some may have higher or lower multiples.

For example, a 35-year-old director earning a salary of £40,000 and taking £30,000 in dividends (total remuneration £70,000) could potentially be eligible for cover up to £1,750,000 (£70,000 x 25).

A specialist broker like WeCovr can help you determine the maximum cover available by comparing the different calculation methods used by all the major UK insurers. We ensure you get the right level of protection for your needs while adhering to all the rules.

Key Considerations Before Taking Out a Relevant Life Policy

While the benefits are clear, there are several important factors to consider before committing to a Relevant Life plan.

The Trust is Essential

We've mentioned it before, but it cannot be overstated: the policy must be written into a suitable discretionary trust from the very beginning. If this step is missed, or done incorrectly, all the tax benefits are lost. The payout would likely be made to the company, becoming a taxable trading receipt, and would then need to be paid out to the family via the estate, attracting IHT.

What Happens if the Employee Leaves the Company?

Unlike a personal policy that you own for life, a Relevant Life Policy is tied to your employment. If the insured person leaves the company, there are a few possible outcomes:

  1. Cancellation: The most common outcome is that the old company stops paying the premiums and the policy lapses. The cover ceases.
  2. Conversion: Some policies include a 'continuation option'. This allows the employee to take over the policy personally, converting it into a standard personal life insurance plan without the need for further medical underwriting. The employee would then start paying the premiums from their own post-tax income.
  3. Takeover by a New Employer: In some cases, if the employee moves to another limited company, it may be possible for the new employer to take over the policy and continue paying the premiums.

What Happens if the Business Closes?

If the company that owns the policy is wound up or ceases trading, the policy will end. There is no longer an employer to pay the premiums. This is a key risk for directors of small companies – your personal life cover is dependent on the survival of your business. For this reason, some directors choose to have a combination of a Relevant Life Policy and a smaller personal policy for baseline protection.

HMRC Rules Can Change

The tax treatment of Relevant Life policies is based on current legislation. While these rules have been in place for many years, governments can and do change tax laws. Any changes could affect the future tax-efficiency of the plan.

Adding Critical Illness Cover

Some insurers allow Critical Illness Cover to be added to a Relevant Life Policy. This provides a lump sum if the employee is diagnosed with a specified serious illness. However, the tax treatment of the critical illness component can be more complex. A payout made to the employee during their lifetime may be treated as a benefit-in-kind and subject to tax. It is crucial to get expert advice on this to understand the implications fully.

Beyond Relevant Life: Other Protection for Business Owners

A Relevant Life Policy is a fantastic tool for personal protection funded by the business. However, it's just one piece of the puzzle. Prudent business owners should also consider other forms of business protection that safeguard the company itself.

  • Key Person Insurance: This protects the business from the financial impact of losing a vital member of staff (including a director) to death or critical illness. The policy pays out to the company to cover costs like lost profits, recruitment fees, or clearing a business loan. It’s about business continuity, not family protection.

  • Shareholder or Partnership Protection: In a business with multiple owners, what happens if one dies? Their shares typically pass to their heirs, who may have no interest or skill in running the business. Shareholder Protection provides the surviving owners with the funds to buy the deceased's shares from their estate at a pre-agreed price, ensuring a smooth transition and maintaining control.

  • Executive Income Protection: Similar to a Relevant Life Policy, this is a company-funded plan. It provides a regular monthly income if an employee or director is unable to work due to long-term illness or injury. Like a Relevant Life Policy, the premiums are typically a deductible business expense and not a benefit-in-kind for the employee, making it a tax-efficient way to protect an individual's most important asset: their income.

At WeCovr, we believe that looking after your health is as important as having the right financial protection. That's why, in addition to expert insurance advice, we provide all our clients with complimentary access to CalorieHero, our proprietary AI-powered calorie and nutrition tracking app. It's our way of going the extra mile to support your overall wellbeing.

Conclusion: A Smart Choice for Modern Businesses

Relevant Life Insurance offers a compelling and tax-efficient solution for UK limited companies looking to provide death-in-service benefits. For company directors, it represents an intelligent way to secure their family's future using pre-tax company profits, delivering substantial savings compared to a personal policy. For small businesses, it unlocks access to a valuable employee benefit that was once the preserve of larger corporations.

By understanding the mechanics of the policy, the crucial role of the trust, and the eligibility criteria, business owners can leverage this powerful tool to enhance their financial planning. It provides peace of mind for employees and their families, acts as a valuable recruitment and retention tool, and does it all in a way that is financially astute for the business.

Navigating the nuances of different insurers' offerings and ensuring the trust is set up correctly is vital. Working with an expert adviser can demystify the process and ensure you find the right policy for your specific circumstances. A Relevant Life Policy isn't just an expense; it's an investment in your people and your family's future, structured in the smartest way possible.

Is Relevant Life Insurance a P11D benefit?

No. Provided the policy meets HMRC's conditions, the premiums paid by the company are not treated as a taxable benefit-in-kind for the employee. This means the employee does not need to declare it on a P11D form and will not pay any additional income tax or National Insurance on the value of the premiums.

Can I have a Relevant Life Policy if I'm a sole trader?

No, unfortunately you cannot. A Relevant Life Policy requires an employer-employee relationship, where the company paying the premiums is a separate legal entity from the person being insured. As a sole trader, you and your business are considered a single entity for tax purposes, so this condition cannot be met. Sole traders should consider personal life insurance policies instead.

Is the payout from a Relevant Life Policy taxable?

Generally, the payout is completely tax-free. Because the policy is written into a discretionary trust, the lump sum is paid to the trust rather than the individual's estate. This means it is typically free from Income Tax, Capital Gains Tax, and, most importantly, Inheritance Tax (IHT).

What happens if I close my limited company?

If you close the limited company that holds the Relevant Life Policy, the policy will cease. The company is the policyholder and is responsible for paying the premiums; without the company, the policy cannot continue in its current form. Some policies offer a 'continuation option' which may allow you to convert it to a personal policy, but you would then become responsible for paying the premiums yourself from post-tax income.

How is a Relevant Life Policy different from a 'death in service' scheme?

A Relevant Life Policy is a type of death in service benefit, but it is a standalone policy for an individual. A traditional Group Life 'death in service' scheme is a single policy that covers a whole group of employees. Key differences include: Relevant Life policies require full medical underwriting, whereas group schemes often have a 'free cover limit' with no underwriting. Payouts from most group schemes are tested against pension allowances, whereas Relevant Life payouts are not. Relevant Life is ideal for small businesses that don't meet the minimum employee numbers for a group scheme.

Does the payout form part of the employee's Lifetime Allowance for pensions?

No. The pension Lifetime Allowance (LTA) was officially abolished from 6th April 2024 and replaced with new allowances. However, even under the old and new systems, a payout from a qualifying Relevant Life Policy is completely separate from an individual's pension funds. It does not count towards the new Lump Sum Allowance or Lump Sum and Death Benefit Allowance, leaving an individual's pension pots unaffected. This is a key advantage over many traditional group life schemes.

Sources

  • Office for National Statistics (ONS): Mortality, earnings, and household statistics.
  • Financial Conduct Authority (FCA): Insurance and consumer protection guidance.
  • Association of British Insurers (ABI): Life insurance and protection market publications.
  • HMRC: Tax treatment guidance for relevant protection and benefits products.

Related tools

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

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Why life insurance and how does it work?

What is Life Insurance?

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

How does it work?

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

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

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

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

Questions to ask yourself regarding life insurance

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

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

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

Benefits offered by income protection, life and critical illness insurance

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

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

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

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

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

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

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

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

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

Types of life insurance policies

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

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

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

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

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

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

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

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

Important Fact!

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

Why is it important to get life insurance early?

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

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

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

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

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

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

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Life, income protection, and/or critical illness insurance are safety nets, very important at a difficult time. If anything happened to you before your cover ends, your life or critical illness insurance would pay a lump sum to your family and/or you (if you took a critical illness or income protection cover) to help cover the losses. Being diagnosed with a critical illness can be devastating, and it won't help matters to be also worrying about how you would cope financially. With a life, income protection, or critical illness policy, you can choose how much cover you need, how you want the policy to pay out, and whether you want cover for both you and your partner. Income protection insurance pays you a regular income if you can't work because of sickness or disability and continues until you return to paid work or you retire. Also known as permanent health insurance, it is quite important for anyone who relies on a paycheck to cover their living costs, but it's particularly important if you're self-employed or own a small business, where your income might be a bit less stable.

Life, income protection, and critical illness insurance pay out millions to families every day. Your expert will explain to you that you need to be honest and open when applying for your insurance.

If you're single with no dependants then it may be that you don't need life assurance. However, if you were to become seriously ill and unable to work, you may benefit from a critical illness or income protection policy. They can help you keep up to date with your rent, bills, food, and other expenses.

It's free to use WeCovr to find life, income protection, and critical illness insurance - we never charge you for quotes. Critical illness, income protection, and life insurance is an investment that pays many times over for you and/or your loved ones.

Life, income protection, and critical illness insurance are important financial products that insurance companies take a lot of care and diligence, so speaking to real human beings ensures that they understand your requirements fully so that you can get the right cover.

All of our partners are carefully vetted and authorised by the FCA, which means they are held to the highest standards that the FCA expects from them and treat all customers fairly!

Our insurance partners give us a few pounds when you take out a policy with one of their experts.

The cost of life insurance depends on several factors, including your age, occupation, health status, and the level of coverage you choose. Your life insurance policy is tailored to your needs, and the cost can vary based on the sum assured, policy term, and other factors.

Some life insurance policies offer an option to add critical illness cover as a rider or as a separate policy. This provides a lump sum payment if you are diagnosed with a critical illness covered by your policy, offering financial support during a difficult time.

Yes, life insurance is available to self-employed individuals to provide financial protection for their loved ones in the event of their death. It ensures that your family can maintain their standard of living and cover expenses such as mortgage payments, bills, and education costs.

If you outlive your life insurance policy and it expires without a claim, you will not receive any payout. Term life insurance policies are designed to provide coverage for a specific period, and once that period ends, the policy terminates without any residual value. However, you can typically renew or purchase a new policy if you still need coverage.

Critical illness insurance provides a lump sum payment if you're diagnosed with a serious illness covered by your policy, offering financial support during a difficult time. It can help cover medical expenses, mortgage payments, and other financial obligations while you focus on recovery.

Critical illness insurance covers a range of serious illnesses and medical conditions specified in your policy, such as cancer, heart attack, stroke, and organ failure. The lump sum payment can be used to cover medical treatment, ongoing care, and living expenses during your recovery.

The cost of critical illness insurance varies depending on factors such as your age, health status, lifestyle, and the level of coverage you choose. Our experts can provide personalised quotes to help you find affordable coverage.

Yes, you can have critical illness insurance alongside your health insurance coverage. Critical illness insurance provides additional financial protection specifically for serious illnesses, complementing your health insurance benefits.

Critical illness insurance policies typically have exclusions for pre-existing conditions and certain medical conditions not covered by the policy. It's essential to review the terms and conditions of your policy to understand what is and isn't covered.

Some critical illness insurance policies may provide coverage for recurring illnesses, while others may not. It's crucial to review the policy terms and understand the specific conditions under which you can make additional claims for recurring illnesses. Your insurer can provide more details on their coverage for recurring critical illnesses.

Yes, you can customise your life insurance policy to suit your individual needs and circumstances. Options may include choosing the sum assured, policy term, premium payment frequency, and additional riders for enhanced coverage.

If you miss a premium payment for your life insurance policy, your coverage may lapse, and your policy could be terminated. However, many insurers offer a grace period during which you can make the payment to keep your policy active. It's essential to contact your insurer to discuss your options if you're unable to make a payment.

Yes, you can typically change the beneficiary of your life insurance policy at any time by completing a beneficiary change form provided by your insurer. It's essential to keep your beneficiary designation up to date to ensure that the proceeds are distributed according to your wishes.

Term life insurance provides cover for a fixed period, such as 10, 20 or 30 years, and pays out a lump sum if you die during that time. It’s often chosen to protect a mortgage or to provide financial support while dependants still rely on your income. Whole-of-life insurance is designed to last for the rest of your life and guarantees a payout whenever you die, as long as premiums are maintained. It’s usually more expensive than term insurance and is sometimes used to help with inheritance tax planning or to leave a guaranteed legacy.

Some term life insurance policies offer the option to convert to a whole life insurance policy without the need for a medical exam or new underwriting. This conversion feature allows you to maintain coverage beyond the term of your policy and provides lifelong protection.

Some life insurance policies offer accelerated death benefits or living benefits that allow you to access a portion of the death benefit if you are diagnosed with a terminal illness. This feature provides financial assistance to help cover medical expenses and other costs during your final months.

While having savings can provide a financial cushion during tough times, income protection insurance offers additional security by replacing a portion of your income if you're unable to work due to illness or disability. It ensures that you can maintain your standard of living and cover essential expenses even if your savings are depleted.

Yes, self-employed individuals can claim income protection insurance if they're unable to work due to illness or disability. Income protection provides a regular income stream to replace lost earnings, helping self-employed individuals cover their living expenses and business costs during periods of incapacity.

The waiting period, also known as the elimination period, is the length of time you must wait after becoming unable to work due to illness or disability before you can start receiving benefits from your income protection insurance policy. Waiting periods typically range from 30 to 90 days, but longer waiting periods may result in lower premiums.

Income protection insurance is designed to provide financial support if you're unable to work due to illness or disability, not for redundancy. However, some policies may offer optional redundancy cover or unemployment cover as an additional benefit, providing a lump sum or monthly payments if you're made redundant.

The tax treatment of income protection insurance benefits depends on whether the premiums were paid with pre-tax or after-tax dollars. Benefits from policies funded with after-tax dollars are typically tax-free, while benefits from policies funded with pre-tax dollars may be subject to income tax. It's essential to consult with a tax advisor to understand the tax implications of your income protection insurance benefits.

Income protection insurance provides a regular income stream if you're unable to work due to illness or disability, while critical illness insurance provides a lump sum payment if you're diagnosed with a covered critical illness, such as cancer, heart attack, or stroke. Critical illness insurance offers financial support to cover medical expenses, living costs, or other obligations during your recovery.

Income protection insurance policies typically have a waiting period (also known as an elimination period) during which you do not receive benefits. If you become unable to work before this waiting period ends, you will not receive any income protection benefits until the waiting period has elapsed. It's important to have sufficient savings or other financial resources to cover your expenses during this initial period.

Many income protection insurance policies allow you to increase your coverage amount if your income rises, without the need for additional underwriting or medical examinations. This feature, sometimes called a 'guaranteed insurability option,' ensures that your coverage keeps pace with your increasing income and financial obligations.

The maximum age to purchase critical illness insurance varies depending on the insurer and the specific policy. While some insurers may offer critical illness insurance up to age 70 or beyond, others may have lower age limits. It's essential to check with insurers to determine their age eligibility criteria for purchasing critical illness insurance.

Whether you can get critical illness insurance if you have pre-existing conditions depends on the insurer's underwriting guidelines and the specific medical conditions. Some insurers may offer coverage with exclusions for pre-existing conditions, while others may decline coverage altogether. It's essential to disclose any pre-existing conditions when applying for critical illness insurance and discuss your options with insurers.

While health insurance provides coverage for medical expenses, critical illness insurance offers financial protection for broader expenses associated with a serious illness, such as lost income, household bills, and lifestyle changes. Critical illness insurance complements health insurance by providing additional financial support during a challenging time, ensuring that you can focus on recovery without worrying about financial burdens.

If you don't make a claim on your critical illness insurance during the policy term, you won't receive a benefit payout. However, having critical illness insurance provides peace of mind knowing that you're financially protected if you're diagnosed with a covered critical illness during the policy term. It's a form of financial preparation for unexpected events and offers valuable protection for you and your family.

If you outlive your critical illness insurance policy and don't make a claim for a covered critical illness during the policy term, the coverage will expire, and you won't receive a benefit payout. Critical illness insurance provides financial protection for a specific period, typically until a specified age or policy term, and offers peace of mind knowing that you're prepared for the unexpected.

Yes, many insurers offer optional riders or add-ons that you can add to your critical illness insurance policy for enhanced coverage. Common riders may include waiver of premium, which waives future premium payments if you become disabled, or return of premium, which refunds a portion of your premiums if you don't make a claim during the policy term. It's essential to review available riders with insurers to customise your coverage to meet your specific needs.

To make a claim on your critical illness insurance policy, you'll need to notify your insurer of your diagnosis and submit a claim form along with any required medical documentation, such as medical reports, test results, and physician statements. Once your claim is reviewed and approved by the insurer, you'll receive the lump sum benefit payment, which you can use to cover medical expenses, living costs, or other financial needs during your recovery.

As we age, the likelihood of encountering health complications increases for us all. In the event that you develop a severe medical condition, critical illness protection can assist with the expenses of crucial bills – enabling you to concentrate on recuperation or adjusting to your new health circumstance.

The typical expense of a Critical Illness protection policy will fluctuate based on aspects such as your age and medical background. As per our investigation, you can secure a policy starting from as low as £8 (for a non-smoking 21-year-old individual).

The most prevalent critical illnesses in the UK are cancer, cardiac arrest, and cerebrovascular accident (stroke).

Cancer is one of the primary causes for critical illness insurance claims in the UK. Cancer constitutes over 80% of critical illness cover claims for females and about 45% of critical illness claims for males.

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