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Relevant Life Insurance vs Keyman Insurance Whats the Difference

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

At WeCovr, our expert advisers help UK directors navigate the crucial differences between Relevant Life and Keyman Insurance, ensuring you choose the most tax-efficient and suitable company protection for your business and family.

Key takeaways

  • Relevant Life Insurance protects an employee's family, with the business paying premiums tax-efficiently. The payout goes directly to the family.
  • Key Person Insurance (Keyman) protects the business itself from the financial impact of losing a crucial employee. The payout goes to the company.
  • Relevant Life is highly tax-efficient, treated as a business expense without creating a P11D benefit-in-kind for the employee.
  • Key Person premiums are only sometimes tax-deductible; specific HMRC rules apply, making it a more complex calculation for your accountant.
  • Both policies are paid for by the business, but their purpose, beneficiary, and tax treatment are fundamentally different. Choosing correctly is vital.

A UK directors guide to tax-efficient business life insurance and company protection

As a company director in the UK, you wear many hats. You are a strategist, a leader, and often, the primary engine of your business's growth. This central role brings with it a dual responsibility: securing the future of your business and ensuring the financial well-being of your family.

Navigating the world of business protection can seem complex. Two of the most powerful and frequently discussed tools at your disposal are Relevant Life Insurance and Key Person Insurance (often called Keyman Insurance). While both are paid for by the company, they serve entirely different purposes and have vastly different tax implications.

Confusing the two is a common and potentially costly mistake.

This definitive guide is designed for UK company directors, partners, and senior managers. We will demystify these policies, compare them head-to-head, and provide the clarity you need to make an informed decision. At WeCovr, we specialise in helping business leaders like you implement robust, tax-efficient protection strategies that safeguard both your company's future and your loved ones' security.

What is Relevant Life Insurance? The Director's 'Death-in-Service' Benefit

In simple terms: Relevant Life Insurance is a life insurance policy paid for by your limited company, which pays out a tax-free lump sum directly to your family or dependants if you die or are diagnosed with a terminal illness.

Think of it as a personal life insurance policy, but with the significant advantage of being funded by the business in a highly tax-efficient way. It is designed to provide a 'death-in-service' benefit for directors and employees of small businesses that are not large enough to warrant a full group life insurance scheme.

How Does Relevant Life Insurance Work?

The mechanics are straightforward, but the structure is key to its tax efficiency:

  1. The Company Pays: Your limited company pays the monthly or annual premiums for the policy.
  2. The Policy is Written in Trust: The policy is immediately placed into a discretionary trust. This is a crucial step. The trust legally separates the policy proceeds from both your estate and the company's assets.
  3. The Beneficiaries are Your Family: The beneficiaries of the trust are your chosen family members or dependants (e.g., spouse, children).
  4. The Payout: Upon a valid claim (death or terminal illness), the insurer pays the lump sum directly to the trust. The trustees (whom you appoint) then distribute the funds to your beneficiaries.

This structure ensures the payout does not form part of your estate for Inheritance Tax (IHT) purposes and bypasses the often lengthy probate process, getting funds to your family quickly when they need them most.

Who is Relevant Life Cover Best Suited For?

  • Company Directors: An excellent way to secure family protection using company funds, rather than post-tax personal income.
  • High-Earning Employees: A valuable part of a remuneration package for key staff in businesses too small for a group scheme.
  • Salaried Employees of Limited Companies: Any employee whose employer is willing to provide this benefit.

It's important to note that Relevant Life cover is not available to sole traders, equity partners in a partnership, or LLP members, as there is no distinct employer-employee relationship.

The Unmatched Tax Efficiency of Relevant Life Cover

The primary appeal of a Relevant Life Plan lies in its tax treatment, which offers a threefold advantage:

  1. Corporation Tax Relief: The premiums are typically considered an allowable business expense by HMRC, meaning they can be offset against your company's corporation tax bill.
  2. No P11D Benefit-in-Kind: Unlike many other company perks (like a company car or private medical insurance), the premiums are not treated as a taxable benefit for the employee or director. This means no extra income tax or National Insurance contributions are due.
  3. Inheritance Tax (IHT) Free Payout: Because the policy is held in trust, the lump sum payout is not considered part of your estate and is therefore not subject to the 40% Inheritance Tax charge.

This triple-layer of tax savings makes it one of the most cost-effective ways for a director to arrange personal life insurance.

Real-Life Scenario: The Director's Dilemma

Sarah is a 45-year-old director of a successful marketing agency. She draws a salary of £50,000 and £50,000 in dividends. She needs £750,000 of life cover to protect her family and clear her mortgage.

Option A (Personal Cover): Sarah pays for a personal life insurance policy from her net income, which has already been subject to income tax and National Insurance.

Option B (Relevant Life Cover): Her company pays the premiums for a £750,000 Relevant Life policy. The company can likely claim corporation tax relief on the premiums. Sarah pays no income tax or NI on the benefit. If she were to die, the £750,000 would be paid via a trust directly to her family, IHT-free.

For Sarah, Option B is significantly more tax-efficient, freeing up her personal income for other uses.

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What is Key Person Insurance? Protecting Your Business from Critical Loss

In simple terms: Key Person Insurance (or Keyman Insurance) is a policy taken out by a business to protect itself against the financial losses it would suffer from the death or critical illness of a vital member of the team.

The fundamental difference is the beneficiary: the payout goes to the business, not the individual's family.

The purpose of a Key Person policy is to provide the company with a cash injection to manage the disruption caused by losing an indispensable individual. This money can be used to:

  • Recruit and train a replacement.
  • Cover a downturn in profits or sales during the transition.
  • Repay outstanding business loans, director's loans, or other debts.
  • Reassure investors, lenders, and clients that the business has a contingency plan.

How Does Key Person Insurance Work?

  1. Identify the Key Person: The business identifies an individual whose absence would have a direct and significant negative financial impact. This could be a founder, the top salesperson, a technical genius, or a director with unique client relationships.
  2. The Company Owns and Pays: The business applies for, owns, and pays the premiums on a life insurance and/or critical illness policy on the life of that key person.
  3. The Company is the Beneficiary: The business is named as the beneficiary of the policy.
  4. The Payout: Upon the death or diagnosis of a specified critical illness of the key person, the insurer pays the agreed sum directly to the business.

Who is Key Person Cover Best Suited For?

Any business that is heavily reliant on one or more individuals for its success. This includes:

  • Start-ups and Small Businesses: Often reliant on the vision and skills of the founders.
  • Tech Companies: Reliant on a lead developer or CTO with unique intellectual property knowledge.
  • Sales-Driven Organisations: Dependent on a "star" salesperson who brings in a disproportionate amount of revenue.
  • Businesses with Significant Debt: Where a lender has insisted on key person cover as a condition of a loan.

The More Complex Tax Treatment of Key Person Cover

Unlike Relevant Life cover, the tax treatment of Key Person Insurance is not straightforward and requires careful consideration with your accountant.

  • Corporation Tax Relief on Premiums: HMRC applies a specific set of tests (often referred to as the 'Anderson' tests) to determine if premiums are an allowable business expense. Broadly, if the policy is intended solely to cover a loss of profits, premiums are more likely to be deductible. If it's to cover a loan or for the benefit of a shareholder, they are less likely to be deductible.
  • Tax on the Payout: The general rule is: if you get tax relief on the premiums, the payout will be treated as a taxable trading receipt for the business. If you don't get tax relief on the premiums, the payout is usually received tax-free.

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.

Real-Life Scenario: The Indispensable CTO

Innovate Ltd is a software company whose success hinges on its CTO, Ben. Ben developed their core algorithm and is the only person who fully understands it. If Ben were to die or become critically ill, the company estimates it would lose £1 million in revenue and spend £250,000 finding and training a replacement.

Innovate Ltd takes out a Key Person policy on Ben's life for £1.25 million. The company pays the premiums and is the sole beneficiary.

Tragically, Ben suffers a major stroke and is unable to return to work. The policy pays out £1.25 million to Innovate Ltd. The company uses this capital to hire a team of specialist contractors to bridge the knowledge gap, recruit a new CTO, and manage the dip in profits, ensuring the business survives the crisis.

Relevant Life vs. Keyman Insurance: A Head-to-Head Comparison

To make the distinction absolutely clear, here is a direct comparison of the two types of cover. Understanding this table is the key to choosing the right protection.

FeatureRelevant Life InsuranceKey Person (Keyman) Insurance
Primary PurposeTo provide a death-in-service benefit for an employee's family.To protect the business from the financial impact of losing a key individual.
Who is the Beneficiary?The employee's family or dependants, via a trust.The business itself.
Who Owns the Policy?The business, but held in trust for the beneficiaries.The business.
Who Pays the Premiums?The business.The business.
Corporation Tax Relief?Yes, premiums are generally an allowable business expense.Sometimes. Depends on the policy's purpose and meeting strict HMRC rules.
P11D Benefit in Kind?No. It is not a taxable benefit for the employee.No. As the benefit is for the company, it's not a perk for the employee.
Payout Treatment (Tax)Tax-free to the beneficiaries.Often taxable. If premiums were tax-deductible, the payout is usually a trading receipt.
Inheritance Tax (IHT)No IHT liability. The trust structure keeps the payout outside the employee's estate.N/A. The payout goes to the business, not an individual's estate.
Typical Use CaseProviding a tax-efficient death benefit for directors and employees of small companies.Covering lost profits, repaying loans, or funding recruitment after losing a vital employee.

Can a Director Have Both Relevant Life and Keyman Insurance?

Yes, absolutely. In fact, for many directors, having both is a sign of a comprehensive and well-thought-out protection strategy.

The two policies are not mutually exclusive; they serve entirely different needs.

  • A Relevant Life policy addresses the question: "How will my family cope financially if I am no longer around?"
  • A Key Person policy addresses the question: "How will my business cope financially if I am no longer around?"

A director who is both the main breadwinner for their family and the primary driver of their company's success has two distinct risks that need insuring. A single policy cannot cover both. Arranging both ensures that in a worst-case scenario, your family receives a tax-free lump sum to maintain their lifestyle, and your business receives the capital it needs to survive, protecting the legacy you've built and the jobs of your employees.

The Critical Role of Trusts in Business Protection

We've mentioned trusts several times, particularly for Relevant Life Insurance. Their importance cannot be overstated.

A trust is a simple legal arrangement that allows you to give an asset (in this case, the life insurance policy) to a small group of people (the trustees) to look after for the benefit of others (the beneficiaries).

For Relevant Life Insurance, the trust is non-negotiable. It is the legal mechanism that:

  1. Directs the payout to your family, not your business.
  2. Keeps the money out of your estate for Inheritance Tax purposes.
  3. Allows the payout to be made without waiting for probate.

Insurers provide standard trust wordings that make this process very simple. A common mistake we see is directors taking out a policy but failing to complete the trust documentation, putting all the tax benefits at risk. At WeCovr, we guide our clients through this process to ensure it's completed correctly from the outset.

For Key Person Insurance, a trust is not typically used because the business is both the policy owner and the beneficiary. The goal is for the money to flow directly back into the company's bank account.

Expanding Your Protection: Other Essential Policies for Directors

While Relevant Life and Keyman are cornerstones of business protection, a robust plan often includes other elements.

Shareholder or Partnership Protection

This is a vital but often overlooked type of cover. If you run a business with one or more other owners, what happens if one of you dies or becomes seriously ill?

  • The Problem: The deceased's shares typically pass to their family as part of their estate. The surviving shareholders may find themselves in business with a spouse or child who has no interest or expertise in the company. The family may want to sell the shares but have no ready buyer, or they may want a value for the shares that the company cannot afford to pay.
  • The Solution: Shareholder Protection uses life and/or critical illness policies to provide the surviving shareholders with enough cash to buy the deceased or critically ill partner's shares at a pre-agreed price. This is set up alongside a legal agreement (a 'cross option agreement'). It ensures a smooth transition, fair value for the departing family, and business continuity for the remaining owners.

Executive Income Protection

What happens if a key director is unable to work for a long period due to illness or injury, but doesn't die? This is where Executive Income Protection comes in.

  • How it Works: Similar to a personal income protection policy, but it's paid for by the business. If the insured director is signed off work, the policy pays a regular monthly benefit to the company.
  • The Benefit: The company can then use this money to continue paying the director a salary via PAYE while they recover. This allows the director to maintain their income without being a financial drain on the business. The benefit received by the company is a trading receipt, and the salary paid to the director is an allowable business expense.

This is a highly valued benefit that protects both the individual's financial stability and the company's cash flow during a prolonged absence.

How WeCovr Helps Directors Secure the Right Protection

Choosing between these policies and structuring them correctly can feel daunting. This is where expert, independent advice is invaluable.

As an FCA-regulated broking firm, WeCovr provides a comprehensive service tailored to the needs of UK company directors.

  1. Expert Consultation: We take the time to understand your business, your role within it, and your personal circumstances. We help you identify your key people and quantify the financial risks.
  2. Whole-of-Market Comparison: We are not tied to any single insurer. We compare policies and premiums from all the leading UK providers to find a suitable and cost-effective solution for your specific needs.
  3. Guidance on Trusts and Tax: Our advisers can explain the nuances of tax treatment and guide you through the essential trust paperwork to ensure your Relevant Life policy is set up for maximum efficiency.
  4. Ongoing Support: Your protection needs will change as your business grows and your life evolves. We can help you review your cover regularly to ensure it remains appropriate.

As part of our commitment to our clients' overall well-being, all WeCovr customers receive complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app. We believe that empowering our clients to take proactive steps in managing their health is a natural extension of helping them plan for their financial security.

The Whole of Life Distinction: An Important Note for IHT Planning

When discussing life insurance, especially in the context of directors and estate planning, it's crucial to understand the different types of "Whole of Life" policies available in the UK market.

Modern Pure Protection Whole of Life

In modern UK protection planning, the vast majority of whole of life policies are pure protection plans with no cash-in value. These are the policies we focus on at WeCovr.

  • They are designed to do one thing: pay out a guaranteed, tax-free lump sum when you die, whenever that may be.
  • They are transparent and straightforward. You pay a premium, and you get a guaranteed level of cover for your entire life.
  • If you stop paying the premiums, the cover ends, and you get nothing back. There is no investment element or surrender value.
  • Because of their simplicity and affordability, they are an excellent tool for specific planning needs, such as covering a future Inheritance Tax (IHT) bill or leaving a guaranteed legacy for loved ones.

Older Investment-Linked Whole of Life

You may have heard of older types of whole of life policies that worked very differently. These with-profits or investment-linked plans were far more complex.

  • Part of your premium paid for the life cover, and the rest was invested in a fund.
  • The idea was that investment growth would help cover the rising cost of insurance as you aged and potentially build a "surrender value".
  • However, these plans were often expensive, opaque, and their performance was tied to the markets. Early surrender values were frequently less than the total premiums paid.

We believe the modern, pure protection approach offers far greater transparency and certainty for our clients' planning needs. These plans, when written in trust, are a cornerstone of effective IHT mitigation.

## Frequently Asked Questions (FAQ)

Can a sole trader get Relevant Life Insurance?

No, a sole trader cannot get Relevant Life Insurance. The policy requires a formal employer-employee relationship, which does not exist for a sole trader. Sole traders should arrange personal life insurance, which they pay for out of their post-tax profits. An adviser can help find a suitable personal plan.

Is the payout from a Key Person policy taxable?

The payout from a Key Person policy can be taxable. The general rule from HMRC is that if the business was able to claim corporation tax relief on the premiums, the payout will be treated as a trading receipt and will therefore be subject to corporation tax. If no tax relief was claimed on the premiums, the payout is usually received tax-free. It is essential to get clarity on this with an accountant before the policy is arranged.

What happens to a Relevant Life policy if I leave the company?

If you leave the company that is paying for your Relevant Life policy, the cover will typically end. As the company owns the policy, they will stop paying the premiums. Some policies may have a 'continuation option' that allows you to take over the policy personally, without further medical underwriting, but this is not standard and should be checked in the policy terms and conditions.

Do I need a medical for Relevant Life or Keyman insurance?

Whether a medical examination is required depends on several factors, including your age, the amount of cover you are applying for, and your answers to the health and lifestyle questions on the application form. For lower levels of cover and younger applicants, a medical is often not needed. For higher sums assured or if you have pre-existing health conditions, the insurer may request a GP report or a nurse screening.

Your Next Step: Secure Your Business and Your Family

Understanding the distinction between Relevant Life and Keyman Insurance is the first step towards building a resilient financial plan.

  • Relevant Life protects your family.
  • Keyman Insurance protects your business.

Both are powerful tools. One provides a tax-efficient employee benefit, while the other provides a crucial financial safety net for your company. As a director, you may well need both.

Don't leave the future of your business and the security of your loved ones to chance. The cost of putting this vital protection in place is often far less than directors assume, and it is a fraction of the cost of doing nothing.

Contact WeCovr today. Our team of specialist advisers is ready to provide you with a free, no-obligation quote and the expert guidance you need to implement the right protection strategy for you and your business.

Sources

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

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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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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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