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Relevant Life Insurance vs Personal Life Insurance Tax Benefits Explained

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

For UK limited company directors, WeCovr explains how a Relevant Life Policy can provide essential term life cover for up to 50% less than a personal policy, thanks to significant tax efficiencies.

Key takeaways

  • Relevant Life premiums are typically an allowable business expense, reducing your Corporation Tax bill.
  • Unlike other company benefits, Relevant Life cover does not create a P11D benefit-in-kind tax liability.
  • Savings can reach up to 50% for higher-rate taxpayers compared to a personal policy paid from post-tax income.
  • The policy must be written into a specific trust to ensure the payout goes directly to the employee's family.
  • This cover is designed for individual employees and directors, not for partnerships or sole traders.

Why paying for term cover through your limited company is up to 50% cheaper

For directors of limited companies in the UK, managing business expenses while ensuring personal financial security is a constant balancing act. One of the most overlooked yet powerful tools in your financial toolkit is Relevant Life Insurance.

When structured correctly, a Relevant Life Policy (RLP) allows your business to pay for your life insurance premiums, treating them as a tax-deductible expense. This simple shift in payment method can result in savings of up to 50% compared to paying for a personal life insurance policy from your post-tax income.

This comprehensive guide will explain the mechanics of Relevant Life cover, break down the significant tax advantages, and compare it directly with personal life insurance. We will show you precisely how these savings are achieved and help you determine if this is a suitable strategy for you and your business.

Understanding the Basics: What is Personal Life Insurance?

Before diving into the specifics of Relevant Life cover, it's essential to understand the benchmark: a standard personal life insurance policy.

A personal life insurance plan is a contract between you (the individual) and an insurance company. You pay a monthly or annual premium from your personal, post-tax income. In return, the insurer promises to pay a tax-free lump sum to your nominated beneficiaries if you pass away during the policy's term.

Key Features of Personal Life Insurance:

  • Paid by you: You pay the premiums from your bank account after you have paid Income Tax and National Insurance on your earnings.
  • Payout: The benefit is paid directly to your chosen beneficiaries or into your estate.
  • Purpose: It's designed to provide for your family, cover mortgage debt, or pay for final expenses.
  • Trusts: You can (and should) place the policy in trust to ensure the payout does not form part of your estate for Inheritance Tax (IHT) purposes and to speed up payment to your family.

The core challenge for a company director is that the money used to pay these premiums has already been taxed multiple times. Your company earns profit, pays Corporation Tax, and then pays you a salary or dividend, on which you pay Income Tax. A Relevant Life Policy cleverly bypasses much of this tax burden.

What is Relevant Life Insurance?

A Relevant Life Policy is a type of term life insurance taken out and paid for by a limited company for an employee or director. Although the company pays, the policy's sole purpose is to provide a lump-sum death-in-service benefit to the employee's family or financial dependants.

It is, in effect, a 'single-person death-in-service scheme'. While large corporations have offered group death-in-service benefits for decades, Relevant Life cover was specifically designed to allow smaller businesses, even one-person limited companies, to offer the same valuable benefit in a tax-efficient way.

Core Principles of a Relevant Life Policy:

  1. Company-Owned: The limited company is the policy owner and pays all the premiums.
  2. Employee-Focused: The cover is for an individual employee or director.
  3. Family Benefit: The payout goes directly to the employee's nominated beneficiaries via a discretionary trust, not to the company.
  4. Tax-Efficient: The premiums are typically treated as an allowable business expense, and it is not considered a P11D benefit-in-kind for the employee.

This structure is what creates the substantial cost savings that make RLP such an attractive proposition for business owners.

The Tax Savings Explained: A Detailed Breakdown

The "up to 50% cheaper" claim is not a marketing gimmick; it's the mathematical result of tax efficiency. Let's break down exactly how paying for life insurance through your company saves you money.

To fund a personal policy, you must first extract money from your company. This process involves multiple layers of taxation. With a Relevant Life Policy, the company pays the premium directly from its pre-tax revenue.

Let's compare the two scenarios with a hypothetical £100 per month life insurance premium.

Scenario 1: Personal Life Insurance (Paid from Post-Tax Income)

Imagine you are a director and a higher-rate taxpayer. To have £100 in your personal bank account to pay the insurance premium, your company needs to have earned significantly more.

  1. Company Earns Profit: Let's say the company needs to extract £167 to get £100 net into your hands.
  2. Corporation Tax: The company pays Corporation Tax on its profits (let's assume a rate of 25%). To pay you a dividend of £125, it first needed to earn ~£167. (£167 - 25% CT = £125).
  3. Dividend Tax: You then receive the £125 dividend and pay Dividend Tax at the higher rate of 33.75%. (£125 x 33.75% = £42.19 tax).
  4. Net in Hand: You are left with £125 - £42.19 = £82.81. This isn't even enough.

To get £100 after tax, you'd need to draw a dividend of approximately £151. (£151 - 33.75% tax = £100). For the company to pay you a £151 dividend, it must have first earned £201 in pre-tax profit (£201 - 25% CT = £151).

True Cost of a £100 Personal Premium (Higher-Rate Taxpayer): £201

Scenario 2: Relevant Life Insurance (Paid by the Company)

Now, let's see how this works with a Relevant Life Policy. The premium is still £100 per month.

  1. Company Pays Premium: The company pays the £100 premium directly to the insurer.
  2. Allowable Business Expense: This £100 is treated as a legitimate business expense, just like salaries or software costs.
  3. Corporation Tax Relief: The company's taxable profit is reduced by £100. At a 25% Corporation Tax rate, this means the company saves £25 in tax.
  4. No P11D Benefit: You, the director, do not have to declare this as a benefit-in-kind. Therefore, there is no additional Income Tax or National Insurance to pay.

True Cost of a £100 Relevant Life Premium: £75 (The £100 premium minus the £25 Corporation Tax saving).

The Cost Comparison

FeaturePersonal Policy (Higher-Rate Taxpayer)Relevant Life Policy
Monthly Premium£100£100
Pre-Tax Company Profit Needed~£201£100
Corporation Tax Paid on this amount£50£0 (it's an expense)
Dividend/Salary Paid£151£0
Personal Tax Paid£51 (Dividend Tax)£0
Effective Net Cost to You/Business£201£75

As the table shows, the total cost to the business of providing the director with a £100-per-month life insurance benefit is £75 for a Relevant Life Policy versus £201 for a personal policy.

This represents a saving of £126, or approximately 62.7%. While the exact saving depends on your personal tax rate, dividend vs. salary structure, and the prevailing Corporation Tax rate, savings of between 40-50% are very typical.

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

To make the choice clearer, here's a direct comparison of the key features of each policy type.

FeatureRelevant Life InsurancePersonal Life Insurance
Who Pays the Premiums?The limited company.The individual.
Premiums Tax-Deductible?Yes, typically an allowable business expense.No.
Benefit-in-Kind (P11D)?No, it is not a taxable benefit for the employee.Not applicable.
Who Owns the Policy?The company.The individual.
Trust RequirementMandatory. A specific RLP trust must be used.Optional but highly recommended.
Payout on DeathTax-free lump sum paid to beneficiaries via the trust.Tax-free lump sum paid to beneficiaries or the estate.
Impact on IHT?The payout does not form part of the estate.The payout may form part of the estate unless in trust.
Impact on Pension LTA?No. The payout is not tested against the Pension LTA.No.
Who is it For?Employees and directors of limited companies.Anyone.
PortabilityCover usually ceases if you leave the company.The policy stays with you regardless of employment.

As an FCA-regulated broking firm, WeCovr helps directors compare quotes for both policy types from across the UK market, ensuring you understand the costs and benefits of each structure before making a decision.

Who is a Relevant Life Policy Suitable For?

Relevant Life cover is a powerful tool, but it's not for everyone. It is specifically designed to meet HMRC's criteria for a tax-efficient employee benefit.

A Relevant Life Policy is a strong fit for:

  • Directors of Limited Companies: Even if you are the sole director and employee, you can set up a policy for yourself. This is the most common use case.
  • Contractors and Freelancers: If you operate through your own limited company, RLP is an excellent way to secure personal cover cost-effectively.
  • Salaried Employees: Any UK-based employee of a limited company whose employer does not offer a group death-in-service scheme. This can be a highly valued perk for key staff in small businesses.

Who is it NOT suitable for?

  • Sole Traders: As a sole trader, you are not an employee of a separate legal entity (a limited company). There is no "employer" to pay the premium, so you cannot benefit from this structure. A personal policy is the appropriate choice.
  • Equity Partners in a Partnership or LLP: Similar to sole traders, partners are not considered employees and therefore do not qualify for Relevant Life cover.

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.

Key Rules and HMRC Conditions for a Relevant Life Policy

For the policy to qualify for favourable tax treatment, it must meet a specific set of rules set out by HMRC. If these rules are not met, the premiums could be treated as a benefit-in-kind, negating the tax advantages.

  1. Pure Protection Only: The policy must be a term life insurance policy. It cannot have a surrender value or investment component.
  2. Death Benefit Only: The policy can only pay out on the death of the insured person. It cannot be combined with critical illness cover. If you need critical illness cover, this must be arranged via a separate personal or executive policy.
  3. Beneficiaries: The benefit must be paid to an individual, a charity, or a trust. It cannot be paid to the company itself. This is a crucial distinction between RLP and Key Person Insurance.
  4. Purpose: The main purpose must be to provide a death benefit for the employee's family, not for tax avoidance.
  5. Cover Level: The amount of cover must be considered 'reasonable' by HMRC. Insurers typically apply a multiple of the employee's total remuneration (salary, dividends, and any P11D benefits). This multiple is age-dependent:
    • Under 40: Up to 25x remuneration
    • Age 40-49: Up to 20x remuneration
    • Age 50+: Up to 15x remuneration

An expert adviser can ensure your application meets these criteria, securing the policy's tax-efficient status from the outset.

The Crucial Role of a Discretionary Trust

With a Relevant Life Policy, using a trust is not optional—it's a fundamental part of the structure. When you set up the policy, the insurer will provide a specific Relevant Life Policy Trust deed that must be completed.

Why is the trust so important?

  • Directs the Payout: The trust legally separates the policy proceeds from the company. This ensures that if the employee dies, the money is paid directly by the trustees to the nominated beneficiaries. It never touches the company's bank account.
  • Avoids Inheritance Tax (IHT): By placing the policy in trust from day one, the payout is not considered part of the deceased's legal estate. This means it is not subject to a potential 40% Inheritance Tax charge.
  • Speeds up Payment: Without a trust, the payout would go into the deceased's estate, which would then have to go through probate—a legal process that can take many months. A trust allows the trustees to access the funds and distribute them to the family much more quickly, providing vital financial support when it's needed most.

A Note on Whole of Life Policies and IHT Planning

While Relevant Life cover is a form of term insurance (it covers you for a fixed period), trust planning is also central to Whole of Life insurance, which is often used for Inheritance Tax planning. It's important to understand the two main types.

  • Modern Pure Protection Whole of Life: In today's UK protection market, most whole of life policies are pure protection with no cash-in value. They are designed to provide a guaranteed payout on death, whenever it occurs. If you stop paying the premiums, the cover simply ends, and you get nothing back. These plans are transparent, increasingly affordable, and are an excellent tool for IHT planning or leaving a guaranteed legacy. At WeCovr, we focus on helping clients compare these straightforward guaranteed protection plans across the market.
  • Older Investment-Linked Policies: Older types of investment-linked or with-profits whole of life policies worked very differently. Part of your premium funded the life cover, while the rest was invested. These policies were designed to build a surrender value over time, but they were often complex, expensive, and their performance was not guaranteed. Surrendering a policy early often resulted in getting back less than you had paid in.

Understanding this distinction is key to making informed decisions about your long-term financial planning.

Real-Life Scenarios: How Relevant Life Cover Works in Practice

Theory is one thing, but seeing how these policies work for real people demonstrates their true value.

Scenario A: The IT Contractor

  • Client: Chloe, 42, is an IT contractor operating through her own limited company, "Chloe Tech Ltd." She has a mortgage of £400,000 and two young children.
  • Need: She wants £500,000 of life cover to protect her family and clear the mortgage if she were to pass away.
  • Personal Quote: A personal policy costs her £45 per month, paid from her post-tax dividends. As a higher-rate taxpayer, this costs her business over £90 in pre-tax profit.
  • Relevant Life Solution: WeCovr arranges a £500,000 Relevant Life Policy for her. The premium is still £45 per month, but now "Chloe Tech Ltd." pays it. The company gets Corporation Tax relief, making the net cost just £33.75 per month.
  • Outcome: Chloe secures the vital protection her family needs, saving over 50% compared to a personal plan. The policy is placed in trust for her partner and children.

Scenario B: The Small Business Owner

  • Client: Mark, 55, runs a small manufacturing business with 10 employees. His operations manager, Sarah, is 48 and a crucial part of the team. The business isn't large enough for a group life scheme.
  • Need: Mark wants to offer a valuable benefit to retain Sarah, who has a young family.
  • Solution: Mark's company takes out a Relevant Life Policy for Sarah, providing cover of £250,000 (a multiple of her salary). The company pays the monthly premium of £35.
  • Outcome: The premium is a tax-deductible expense for the business. Sarah gets peace of mind from a significant death-in-service benefit at no personal cost, increasing her loyalty to the company. Mark has provided a high-value perk for a very low net cost.

Other Essential Protection Insurance for Company Directors

Relevant Life cover is an excellent starting point, but it's just one piece of the business protection puzzle. A comprehensive strategy protects not only your family but the business itself.

Key Person Insurance

  • What it is: A policy taken out and paid for by the business on the life (and/or critical illness) of a key individual. This could be a founder, a top salesperson, or anyone whose loss would have a severe financial impact on the company.
  • How it works: Unlike RLP, the payout from a Key Person policy goes directly to the business.
  • Purpose: The funds are designed to cover the costs of replacing the key person, compensate for lost profits during the disruption, or repay business loans.
  • Tax: Premiums may be tax-deductible if they meet HMRC's 'wholly and exclusively' for business purposes test. The payout may be taxable.

Shareholder or Partnership Protection

  • What it is: Life insurance policies taken out by business owners on each other's lives. It's usually combined with a legal agreement called a cross-option agreement.
  • How it works: If one business partner or shareholder dies, the policy pays out to the surviving owners.
  • Purpose: The funds provide the surviving owners with the capital needed to buy the deceased owner's shares from their estate. This prevents the shares from passing to family members who may have no interest or expertise in running the company and ensures the deceased's family receives a fair cash value for their shares.

Executive Income Protection

  • What it is: An income protection policy paid for by the company for a specific director or employee. It provides a monthly replacement income if the insured person is unable to work due to illness or injury.
  • How it works: Like RLP, the premiums are typically a tax-deductible business expense and are not a P11D benefit for the employee. When a claim is made, the benefit is paid to the company, which then distributes it to the employee via PAYE, deducting tax and NI as normal.
  • Who it's for: It's an excellent way for directors to secure their own income and a high-value benefit for key employees, often with more generous terms than a personal income protection plan.

A holistic protection review with an expert adviser can help you identify which of these covers are appropriate for your specific business structure and needs.

How WeCovr Can Help You Find the Right Cover

Navigating the world of business protection can feel complex. The rules are specific, and the consequences of getting it wrong can be costly. This is where expert, independent advice is invaluable.

At WeCovr, we specialise in helping UK company directors, business owners, and freelancers find the most suitable and cost-effective protection.

  • Expert Guidance: Our advisers are specialists in Relevant Life, Key Person, and Executive Income Protection. We can quickly assess your situation and explain your options in plain English.
  • Whole-of-Market Comparison: As an FCA-regulated broker, we compare plans from all the UK's leading insurers to find you competitive terms. There's no need to shop around.
  • Hassle-Free Application: We handle the paperwork for you, from the initial application to the crucial trust documentation, ensuring everything is set up correctly for tax purposes.
  • Holistic Approach: We don't just sell policies. We help you build a robust financial safety net for you, your family, and your business. As part of our customer care programme, all our clients receive complimentary access to our AI-powered wellness app, CalorieHero, to support their health and well-being.

Frequently Asked Questions (FAQs)

Can I have a Relevant Life Policy if I'm the only director and employee of my limited company?

Yes, absolutely. This is one of the most common uses for a Relevant Life Policy. As long as you are taking a salary or dividends and are a registered employee or director of your own limited company, you can set up a policy for yourself, paid for by the business. It is designed specifically for small businesses, including one-person companies.

Is the payout from a Relevant Life Policy taxable?

No. Provided the policy is correctly set up within a Relevant Life Policy trust from the start, the lump sum payout is paid directly to your beneficiaries and is not typically subject to income tax or inheritance tax. The trust ensures the money never becomes part of your estate or the company's assets.

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

Typically, the cover will cease when you are no longer an employee of the company that owns the policy. However, many modern policies include a 'continuation option'. This allows you to take over the policy on a personal basis, without the need for further medical underwriting, within a certain timeframe (e.g., 30-60 days) after leaving the company. You would then be responsible for paying the premiums personally.

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

No, you cannot. To qualify for its favourable tax status with HMRC, a Relevant Life Policy can only be a pure life insurance policy that pays out on death. If you require critical illness cover, this must be arranged separately, either as a personal policy or through a business-paid Executive Income Protection plan that may include a critical illness element.

Take the Next Step

Understanding the tax benefits of a Relevant Life Policy is the first step. The next is to see how much you could save. By paying for your life insurance through your business, you can secure vital financial protection for your loved ones at a fraction of the cost of a personal plan.

Get in touch with WeCovr today for a free, no-obligation comparison quote. Our expert advisers will walk you through the process, answer all your questions, and help you put a robust, tax-efficient plan in place.

Sources

  • gov.uk (HMRC Employment Income Manual)
  • Financial Conduct Authority (FCA)
  • The Association of British Insurers (ABI)
  • Office for National Statistics (ONS)

Related tools

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

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Why life insurance and how does it work?

What is Life Insurance?

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

How does it work?

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

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

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

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

Questions to ask yourself regarding life insurance

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

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

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

Benefits offered by income protection, life and critical illness insurance

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

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

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

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

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

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

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

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

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

Types of life insurance policies

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

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

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

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

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

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

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

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

Important Fact!

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

Why is it important to get life insurance early?

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

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

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

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

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

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

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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.

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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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