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Relevant Life Insurance vs Group Life Assurance (Death in Service)

WeCovr Editorial Team · experienced insurance advisers
Last updated Mar 14, 2026
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TL;DR

For UK company directors, a Relevant Life Plan offers far greater control, portability, and higher cover multiples than a standard Group Life (Death in Service) scheme. At WeCovr, our expert advisers help you compare tax-efficient plans to secure superior protection.

Key takeaways

  • Relevant Life Plans offer cover up to 30x remuneration (salary + dividends), far exceeding the typical 4x salary of group schemes.
  • Unlike group cover, a Relevant Life Plan is portable and stays with you if you leave your company or start a new venture.
  • Premiums are an allowable business expense for the company and are not treated as a P11D benefit for the employee.
  • Relevant Life policies are always written into a trust, ensuring the payout is fast, tax-free, and avoids Inheritance Tax.
  • Group schemes are tied to the employer, offering less control and often insufficient cover for a director's true financial needs.

Why individual director policies offer better control and multiples than group schemes

For many employees, a "Death in Service" benefit is one of the most valuable perks an employer can offer. It provides a degree of peace of mind, assuring them that their loved ones will receive a financial lump sum should the worst happen. This benefit, formally known as Group Life Assurance, is a fantastic foundation for any employee's financial protection.

However, for company directors, business owners, and key high-earning employees, relying solely on a standard group scheme can be a significant strategic mistake. The inherent limitations of these schemes—particularly around cover levels and portability—often leave the families of the most vital people in a business dangerously under-protected.

This is where a Relevant Life Plan emerges as a superior, tax-efficient, and flexible alternative. It's a bespoke form of 'death in service' cover, designed specifically for individuals but paid for by their company.

This definitive guide compares Group Life Assurance with Relevant Life Insurance in detail. We will explore why the control, portability, and significantly higher cover multiples offered by an individual Relevant Life Plan make it the gold-standard choice for directors and business leaders across the UK.

What is Group Life Assurance (Death in Service)?

Group Life Assurance is a single insurance policy taken out by an employer to provide life insurance cover for its entire workforce, or a specific group of employees. It's the technical term for what is commonly known as a Death in Service benefit.

How It Works

  1. The Policy: The employer owns and pays for a single policy that covers multiple employees.
  2. The Benefit: If an employee dies while employed by the company, the policy pays out a tax-free lump sum.
  3. The Payout: The benefit is typically paid into a company-managed trust. The trustees then distribute the funds to the employee's nominated beneficiaries (e.g., their spouse, partner, or children).

This structure ensures the payout does not form part of the deceased's estate for Inheritance Tax (IHT) purposes and avoids the lengthy probate process.

Typical Cover Levels

The most common feature of a group scheme is that the cover amount is a multiple of the employee's basic salary.

  • A typical level is 2 to 4 times annual salary.
  • Some more generous schemes might offer 5x, 10x, or even more, but this is less common.
  • The key limitation is that this multiple is almost always based on basic salary only, excluding bonuses, commission, and dividends.

Underwriting and Free Cover Limits

One of the main attractions for employers is the simplicity of underwriting. Most group schemes have a "Free Cover Limit" (FCL). This is the maximum amount of cover an employee can receive without needing to provide any medical information.

For example, if a scheme has an FCL of £500,000, any employee whose salary multiple results in a benefit below this amount is automatically accepted for cover. This makes it easy to insure a large workforce without administrative hassle.

Who Is It Best Suited For?

Group Life Assurance is an excellent, cost-effective solution for businesses wanting to provide a valuable, baseline level of life cover to their entire workforce. It's a highly-valued employee benefit that can improve staff retention and morale.

However, as we will see, its "one-size-fits-all" nature is also its biggest weakness for key individuals.

Pros of Group Life AssuranceCons of Group Life Assurance
✅ Simple for employees to join (often automatic).❌ Not portable: Cover ceases when you leave the company.
✅ Cost-effective for employers covering many staff.❌ Low cover: A 4x salary multiple is often insufficient.
✅ No medical underwriting below the Free Cover Limit.❌ Based on salary only: Ignores dividends and bonuses.
✅ A highly valued employee benefit.❌ No individual control: The employer owns and controls the policy.

What is a Relevant Life Plan?

A Relevant Life Plan (RLP) is a standalone, individual death-in-service life insurance policy. It is paid for by a limited company but is designed to pay out directly to the employee's family or nominated beneficiaries.

Think of it as a personal death-in-service benefit, offering the tax advantages of a group scheme but with the flexibility and higher cover of an individual policy.

How It Works

  1. The Policy: The limited company takes out an individual life insurance policy on the life of an employee (e.g., a director).
  2. The Premium: The company pays the monthly or annual premiums.
  3. The Trust: Crucially, the policy is written into a discretionary trust from day one. The employee's chosen beneficiaries are named within the trust.
  4. The Payout: If the insured person dies during the policy term, the insurer pays the benefit directly to the trustees, who then pass it to the beneficiaries. The money never touches the company's bank account.

Tax Treatment: The Triple Advantage

Relevant Life Plans are structured to be extremely tax-efficient, provided they meet specific HMRC criteria:

  1. For the Business: The premiums are typically treated as an allowable business expense, so the company can offset them against its corporation tax bill.
  2. For the Employee: The premiums are not considered a P11D benefit in kind. This means the employee does not pay any extra income tax or National Insurance for this valuable cover.
  3. For the Beneficiaries: Because the policy is held in trust, the lump sum payout is paid outside of the deceased's estate, making it free from Inheritance Tax.

Typical Cover Levels

This is where Relevant Life Plans truly outperform group schemes. Insurers allow for much higher multiples of an employee's total remuneration.

  • Cover can be up to 25 or 30 times total annual remuneration.
  • Crucially, "remuneration" includes both salary and dividends.
  • For a director who takes a small salary and large dividends, this difference is transformative.

Who Is It Best Suited For?

Relevant Life Plans are ideal for:

  • Company Directors who want higher cover than a group scheme can offer.
  • High-Earning Employees whose remuneration structure includes significant bonuses or commission.
  • Small Businesses (SMEs) that don't have enough employees to set up a cost-effective group scheme but still want to offer this key benefit.
Pros of a Relevant Life PlanCons of a Relevant Life Plan
✅ High cover levels: Up to 30x salary and dividends.❌ Requires full medical underwriting for the individual.
✅ Highly tax-efficient: A business expense, not a benefit in kind.❌ Can be more expensive per person than a large group plan.
✅ Portable: You can take the plan with you if you leave the company.❌ Only provides death benefits (no critical illness component).
✅ IHT-free: Always written in trust, bypassing the estate.❌ Only available to employees of a limited company (not sole traders).

The Core Showdown: Relevant Life vs. Group Life - A Detailed Comparison

When we place the two options side-by-side, the advantages for a company director become crystal clear. A Relevant Life Plan offers a tailored, robust, and portable solution that a generic group scheme simply cannot match.

Here is a direct comparison of the key features:

FeatureGroup Life Assurance (Death in Service)Relevant Life Plan (RLP)The Director's Advantage
Policy HolderThe company.The company (but held in trust for the employee's family).RLP gives the employee's family direct beneficiary status via the trust, removing the company as a middle-man at the point of claim.
PortabilityNo. Cover ends when you leave the company.Yes. The plan is portable and can be transferred to a new employer or continued on a personal basis.Control & Continuity. A director can secure valuable cover for life, regardless of their company's future or their career path.
Cover AmountTypically 2x to 4x basic salary. Capped at a low multiple and ignores other earnings.Up to 25x-30x total remuneration (salary + dividends). Allows for multi-million-pound cover.Sufficient Protection. Directors can secure a sum that truly protects their family's lifestyle and clears outstanding debts like a mortgage.
UnderwritingOften none below a "Free Cover Limit". Designed for groups.Full medical underwriting is required for each individual policy.Certainty. Once the policy is underwritten and in force, the cover is fully secured and defined. The price is locked in.
Trusts & IHTUsually paid via a company trust, but arrangements can vary. A potential weak link if not set up correctly.Always written into a discretionary trust from day one as a condition of the plan.Simplicity & IHT Efficiency. The benefit is guaranteed to be paid outside the estate, avoiding the 40% IHT charge and probate delays.
Tax EfficiencyPremiums are an allowable business expense. Benefit is tax-free to beneficiaries.Premiums are an allowable business expense. Not a P11D benefit. Benefit is tax-free.The tax treatment is similar, but RLP provides these benefits on a superior, individual, and portable basis.
Best ForCovering a large workforce with a baseline, cost-effective benefit.Directors, key employees, and small businesses needing high-value, tax-efficient, and portable cover.A Tailored Solution. It is designed from the ground up to meet the specific needs of key individuals within a business.
Get Tailored Quote

Why Higher Multiples Matter for Company Directors

The most critical difference between the two policy types is how the sum assured is calculated. For a company director, this difference is not just a detail—it's the deciding factor.

Most directors of small to medium-sized limited companies structure their income in a tax-efficient way. This typically involves:

  • A small PAYE salary (often up to the National Insurance threshold, around £12,570).
  • The remainder of their income is drawn as dividends from company profits.

A group life scheme, which only recognises basic salary, completely fails to acknowledge this reality. A Relevant Life Plan, however, is designed for it.

Real-Life Scenario: Director A's Protection Gap

Let's look at a realistic example of a successful company director.

  • Name: Sarah, Director of a UK consulting firm.
  • Remuneration:
    • Annual Salary: £12,570
    • Annual Dividends: £80,000
    • Total Annual Remuneration: £92,570
  • Family Needs: Sarah has a mortgage of £450,000 and two school-age children. She wants to ensure her family can clear the mortgage and have a substantial fund to live on if she were to pass away.

Scenario 1: Protection under a standard Group Life Scheme

If Sarah's company has a group scheme offering a typical 4x salary benefit:

  • Cover Amount = 4 x £12,570 = £50,280

This sum is alarmingly inadequate. It would not even cover a tenth of her mortgage, let alone provide for her children's future. It bears no relation to the lifestyle her £92,570 income provides.

Scenario 2: Protection under a Relevant Life Plan

Working with an adviser at WeCovr, Sarah discovers she is eligible for a Relevant Life Plan with a multiple of 20x her total remuneration:

  • Cover Amount = 20 x £92,570 = £1,851,400

This level of cover is transformative. It would allow her family to:

  • Pay off the £450,000 mortgage in full.
  • Leave a tax-free investment fund of over £1.4 million to provide an income for her family for decades.

This simple comparison demonstrates that for any director drawing dividends, a group scheme offers a false sense of security. A Relevant Life Plan provides protection that is genuinely relevant to their financial reality.

The Portability Advantage: Securing Your Future Beyond Your Current Business

A director's career is rarely static. You might sell your business, merge with another, retire, or embark on a new venture. What happens to your life insurance when you do?

  • With Group Life Cover: It's simple. The day you leave the company, your cover ends. You walk away with nothing.

If you are in your 50s or 60s when you exit, finding affordable personal life insurance can be challenging. Premiums will be significantly higher due to your age, and any health conditions developed over the years could make cover prohibitively expensive or even unobtainable.

  • With a Relevant Life Plan: You are in control. The policy is yours to take with you.

Because it's an individual plan, it can be easily assigned to a new employer to continue paying the premiums. Alternatively, you can choose to take over the premiums yourself, converting it into a personal policy without any further medical underwriting.

This portability provides an invaluable and continuous protection safety net that bridges career changes, business sales, and retirement. It ensures that the robust cover you secured in your 30s or 40s remains with you into your later years when you may need it most.

For a policy to qualify for the favourable tax treatment of a Relevant Life Plan, it must adhere to a strict set of rules laid out by HMRC. It's essential that the plan is set up correctly by a professional adviser to ensure compliance.

The key conditions are:

  1. Pure Protection Only: The policy must solely provide a lump sum death benefit. It cannot include other benefits like critical illness cover or have a surrender value.
  2. Beneficiaries: The payout must be made to an individual (e.g., a family member), a charity, or into a trust for their benefit.
  3. Purpose: The plan's main purpose must be for the protection of the employee's family, not for tax avoidance.
  4. Term and Age: The policy must typically end before the employee's 75th birthday.
  5. Exclusions: The policy must not be part of a wider pension scheme or a group policy. It has to be a standalone plan.

At WeCovr, our advisers are experts in these rules. We ensure every Relevant Life Plan we arrange is fully compliant, giving both the business and the director complete peace of mind.

The Vital Role of Trusts in Business Protection

You cannot have a Relevant Life Plan without a trust. The trust is the legal architecture that makes the plan work so effectively. When you set up a policy, the insurer provides a standard discretionary trust deed for you to complete.

What is a Discretionary Trust?

A discretionary trust is a legal arrangement where you (the settlor) give assets (the insurance policy) to a group of people (the trustees) to manage for the benefit of others (the beneficiaries). The trustees have the 'discretion' to decide which beneficiaries receive money, how much, and when.

When setting up the trust, you will:

  • Appoint Trustees: These are the people you trust to manage the payout. It can be family members, friends, or a professional trustee.
  • Name Beneficiaries: This is a wide class of people you want to be able to benefit, such as your spouse, children, grandchildren, and siblings.
  • Write a Letter of Wishes: This is a private letter stored with the trust deed, guiding the trustees on how you would like them to distribute the money. It isn't legally binding but provides crucial direction.

The Three Key Benefits of Using a Trust

  1. Avoids Inheritance Tax (IHT): By placing the policy in trust, you legally give it away. It no longer forms part of your estate. This means the entire payout is exempt from the 40% IHT charge that could apply to assets left in your will.
  2. Avoids Probate: Probate is the legal process of validating a will and distributing an estate's assets. It can take many months, sometimes years. A trust payout bypasses probate entirely. The insurer pays the claim directly to the trustees, who can then distribute the funds to the family in a matter of weeks.
  3. Gives You Control: The trust structure, combined with a letter of wishes, allows you to control who benefits from your policy long after you're gone, protecting the funds for your chosen loved ones.

Beyond Relevant Life: A Holistic Protection Strategy for Directors

Death is just one risk a business owner faces. A truly comprehensive protection strategy looks at the bigger picture. A Relevant Life Plan is a cornerstone, but it should be complemented by other forms of cover.

Executive Income Protection: If a Relevant Life Plan protects your family after your death, Executive Income Protection protects you and your family during your life. This is another tax-efficient policy paid for by the business. If you're unable to work due to illness or injury, it pays out a regular monthly income to replace your lost earnings. It's arguably as important as life cover.

Key Person Insurance: This protects the business itself. The company takes out a life insurance or critical illness policy on a key individual whose loss would have a severe financial impact (e.g., lost profits, cost of recruitment). The payout goes directly to the business to help it survive the disruption.

Shareholder Protection: For companies with multiple owners, this is vital. It provides the surviving shareholders with the funds to purchase a deceased or critically ill shareholder's shares from their family. This prevents the shares from falling into the wrong hands and ensures a smooth transfer of ownership, maintaining business continuity.

At WeCovr, we can help you build a complete protection portfolio for you and your business, ensuring every angle is covered. As part of our commitment to our clients' long-term health, we also provide complimentary access to CalorieHero, our AI-powered nutrition and calorie tracking app, to support your wellness journey.

Common Mistakes to Avoid When Choosing Business Life Cover

Navigating business protection can be complex. Here are some common pitfalls we help our clients avoid:

  1. Sole Reliance on a Group Scheme: As this article has shown, for directors, this provides a dangerously inadequate level of cover. It's a foundational benefit, not a complete solution.
  2. Forgetting Dividends: Calculating your life cover needs based on your small salary is a critical error. Your protection must reflect your total income and lifestyle.
  3. Ignoring Income Protection: The statistics are clear: you are far more likely to be off work long-term due to illness than you are to die during your working life. Executive Income Protection is essential.
  4. No Shareholder Agreement: For businesses with co-directors, having Shareholder Protection insurance without a corresponding legal agreement (a 'cross option agreement') is a recipe for disaster. The insurance provides the money, but the agreement provides the legal mechanism to force the sale and purchase of shares.
  5. A DIY Approach: The tax rules are nuanced and the consequences of getting it wrong are severe. Using a specialist broker is not a cost; it's an investment in getting the right advice and ensuring your plan is structured correctly for maximum benefit.

How WeCovr Helps Directors Secure the Right Protection

Choosing the right cover can feel daunting, but our process is designed to make it simple, clear, and effective.

  1. Discovery & Analysis: We start with a detailed conversation to understand your personal and business finances, your remuneration structure, your family's needs, and your long-term goals.
  2. Market Comparison: As an independent broker, we are not tied to any single insurer. We compare Relevant Life Plans, Executive Income Protection, and other business policies from across the entire UK market to find you the most comprehensive cover at the best possible price.
  3. Expert Advice & Calculation: We calculate the maximum tax-efficient cover you are eligible for and present you with clear, jargon-free options. We explain the pros and cons of each, empowering you to make an informed decision.
  4. Seamless Application & Trust Setup: We handle all the application paperwork for you. Crucially, we guide you through the process of setting up the discretionary trust correctly, ensuring your policy is IHT-efficient from day one. This service is included at no extra cost.
  5. Ongoing Support: Our relationship doesn't end when the policy is in force. We are here to support you with policy reviews, changes in circumstances, and, most importantly, provide guidance to your family should they ever need to make a claim.

Frequently Asked Questions (FAQ)

Can a sole trader or a partner in an LLP have a Relevant Life Plan?

No, a Relevant Life Plan is specifically for employees of a limited company. This is because the plan relies on an employer-employee relationship for its tax status. Sole traders and partners in an LLP are not employees, so they should look at personal life insurance plans. The premiums for personal plans can sometimes be claimed as a business expense, but you should seek advice from your accountant.

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

No, to comply with HMRC rules for tax efficiency, a Relevant Life Plan must be a 'pure protection' policy providing death benefits only. If you want to add cover for serious illness, you would need to take out a separate policy, such as a personal Critical Illness plan or an Executive Income Protection policy, which is also paid for by the business and provides a replacement income if you cannot work.

What happens to my Relevant Life Plan if I close my limited company?

The portability of a Relevant Life Plan means you have options. In most cases, you can take over the policy on a personal basis, paying the premiums yourself from your personal bank account. The plan then becomes a standard personal life insurance policy. The key benefit is that you will not need to go through medical underwriting again, and your premiums will continue at the rate you secured when you first took out the policy. An adviser can help you manage this transition smoothly.

The Verdict: Control and Sufficiency for Company Directors

While Group Life Assurance serves as a valuable and commendable benefit for a general workforce, it falls short for the specific needs of company directors and key business owners. Its rigid structure, salary-based multiples, and lack of portability create a significant protection gap for those whose income and careers are more complex.

A Relevant Life Plan is the definitive solution. It offers the tax efficiency of a group scheme but delivers the high-level, bespoke cover of a personal plan. By acknowledging total remuneration—including dividends—it allows directors to secure a sum that genuinely protects their family's financial future. Its portability provides a lifetime of security that transcends any single business venture.

For any director serious about their financial planning, the choice is clear. A Relevant Life Plan provides the control, flexibility, and, most importantly, the level of cover that your family deserves.

Ready to replace your inadequate group cover with a tax-efficient plan that truly protects your loved ones? Our expert team is ready to provide a free, no-obligation quote and comparison.

Contact WeCovr today to discover how much more protection your business could be providing for you.

Sources

  • HM Revenue & Customs (HMRC)
  • Financial Conduct Authority (FCA)
  • 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.

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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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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.

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