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Shareholder Protection Life Insurance UK

WeCovr Editorial Team · experienced insurance advisers
Last updated Feb 20, 2026
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TL;DR

For any business owner, the company they've built is more than just an asset; it's a legacy. Yet, the unexpected death or serious illness of a shareholder can plunge a stable business into a period of uncertainty, conflict, and potential financial crisis. The very ownership structure that provides its foundation can become its biggest vulnerability.

Key takeaways

  • Agreement: Shareholders enter into a legal agreement, often called a Cross-Option Agreement. This sets out the rules for what happens if a shareholder dies.
  • Insurance: Each shareholder takes out a life insurance policy (often including critical illness cover) on the other shareholders, for a sum equal to their share of the business's value.
  • Trigger Event: If a shareholder passes away, the insurance policy pays out a lump sum.
  • Transaction: The surviving shareholders use this tax-free lump sum to purchase the deceased's shares from their estate or beneficiaries.
  • Cancer Research UK reports that around 1,000 people are diagnosed with cancer every day in the UK. Many of these are of working age.

For any business owner, the company they've built is more than just an asset; it's a legacy. Yet, the unexpected death or serious illness of a shareholder can plunge a stable business into a period of uncertainty, conflict, and potential financial crisis. The very ownership structure that provides its foundation can become its biggest vulnerability.

This is where Shareholder Protection Insurance comes in. It's not just another policy; it's a strategic financial tool designed to ensure business continuity, protect the interests of the remaining owners, and provide a fair value for the deceased's family. This guide explores how UK businesses use this vital cover to safeguard their future.

How businesses use life cover to protect ownership structures

At its core, Shareholder Protection Life Insurance is a contingency plan funded by an insurance policy. It's designed to manage the transfer of ownership smoothly and fairly if a shareholder dies or, if included, suffers a specified critical illness.

The mechanism is straightforward yet powerful:

  1. Agreement: Shareholders enter into a legal agreement, often called a Cross-Option Agreement. This sets out the rules for what happens if a shareholder dies.
  2. Insurance: Each shareholder takes out a life insurance policy (often including critical illness cover) on the other shareholders, for a sum equal to their share of the business's value.
  3. Trigger Event: If a shareholder passes away, the insurance policy pays out a lump sum.
  4. Transaction: The surviving shareholders use this tax-free lump sum to purchase the deceased's shares from their estate or beneficiaries.

The result? The surviving shareholders retain full control of their company, and the deceased shareholder's family receives a fair cash value for their shares, without being forced into running a business they may not understand or want. It’s a clean, pre-agreed solution to a potentially messy and emotional problem.

What is Shareholder Protection Insurance? A Deeper Dive

Shareholder Protection Insurance is a specific type of business life insurance. It's an agreement between the shareholders of a company to ensure that if one of them dies, the others have the funds and the legal right to buy their shares.

It is crucial to distinguish it from another common form of business protection:

  • Shareholder Protection: This is for the benefit of the shareholders. The goal is to maintain the ownership structure. The payout is used to buy shares from the deceased's estate, ensuring control remains with the surviving business partners.
  • Key Person Insurance: This is for the benefit of the business itself. The goal is to compensate the company for the financial loss resulting from the death or illness of a crucial employee or director. The payout goes directly to the business to cover lost profits, recruitment costs, or debt repayment.

While both are vital, they serve entirely different purposes. A business could need one, the other, or both, depending on its structure and dependencies.

According to the Department for Business and Trade, the UK had over 2.1 million incorporated companies at the start of 2023. A significant portion of these are small and medium-sized enterprises (SMEs) with two or more director-shareholders. For these businesses, the sudden loss of a co-owner isn't a remote possibility; it's a fundamental risk to their existence.

The Alarming Risks of Not Having Shareholder Protection

Failing to plan for a shareholder's death can unravel a business with frightening speed. The consequences are not just financial; they can be personal, legal, and ultimately, terminal for the company.

Here are the most common scenarios that unfold without a protection plan:

1. The Unwanted Business Partner

When a shareholder dies, their shares pass to their beneficiaries as part of their estate. This is often a spouse, partner, or children who may have zero interest, experience, or aptitude for running the business. They may demand a board seat, try to influence strategic decisions, or draw a salary, creating friction and operational paralysis.

2. The Forced Sale

The beneficiaries might have no desire to be involved and simply want to liquidate the asset. They could decide to sell the shares to the highest bidder. This could mean:

  • A direct competitor buys the shares, gaining a foothold in your company.
  • A venture capital firm with a conflicting ethos takes a stake.
  • An unknown third party becomes your new partner.

The surviving shareholders lose control over who they are in business with, potentially compromising trade secrets and long-term strategy.

3. The Financial Black Hole

Perhaps the most likely scenario is that the family wants the surviving shareholders to buy them out. This is a fair request—they need the cash value of the shares. However, without insurance, where does this money come from?

  • Personal Funds: Do the surviving shareholders have hundreds of thousands, or even millions, of pounds readily available? Unlikely.
  • Company Funds: Taking a large sum from the business's working capital could cripple its operations, halt growth plans, and jeopardise its financial stability.
  • Bank Loan: The business or shareholders could try to borrow the money. However, the recent death of a key director may make lenders nervous and unwilling to offer favourable terms, if they offer them at all.

4. The Valuation Dispute

Without a pre-agreed valuation method, determining a fair price for the shares can lead to bitter and expensive disputes. The family will want the highest possible price, while the surviving shareholders may argue for a lower one. This often ends in costly legal and accounting fees, damaging relationships and draining resources.

The Office for National Statistics data on business survival underscores the precarious nature of enterprise. Of businesses started in the UK in 2017, only 39.6% were still trading five years later. While many factors contribute to this, a failure to plan for internal shocks—like the loss of a shareholder—is a significant and avoidable risk.

How Does Shareholder Protection Work in Practice? A Step-by-Step Guide

Implementing a robust shareholder protection plan involves four key stages.

Step 1: The Shareholders' Agreement

This is the legal bedrock of the entire arrangement. Before any insurance is put in place, all shareholders must sit down with a solicitor to draft a formal agreement, often a Cross-Option Agreement. This document legally obligates the deceased's estate to sell the shares and the surviving shareholders to buy them upon a trigger event. It removes ambiguity and ensures the process is binding.

Step 2: Valuing the Business

The shareholders must agree on a fair and realistic valuation for the company. This value determines the amount of insurance cover needed. Common valuation methods include:

  • A multiple of net profit or EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation).
  • A percentage of annual turnover.
  • An asset-based valuation.

The chosen method should be recorded in the shareholders' agreement. Crucially, this valuation must be reviewed regularly—at least annually—to ensure the insurance cover keeps pace with the company's growth.

Step 3: Setting Up the Policies

Once the value is agreed upon, the insurance policies can be arranged. There are three primary ways to structure this, each with its own pros and cons.

StructureHow It WorksBest ForProsCons
Life of AnotherEach shareholder takes out a policy on the life of every other shareholder.2-3 shareholders.Simple to understand. Payout goes directly to the individual.Becomes complex and costly with more shareholders (e.g., 4 shareholders = 12 policies).
Company Share PurchaseThe company takes out a single policy on the life of each shareholder.Simplicity in larger firms.Fewer policies to manage. Premiums paid by the company.Payout is made to the company, which can have complex tax consequences (e.g., Corporation Tax).
Business TrustAll policies are placed into a business trust, with all shareholders as trustees and beneficiaries.Most scenarios, especially with 3+ shareholders.Highly tax-efficient. Keeps proceeds out of the business and individual estates. Flexible.Requires a legal trust deed. Slightly more complex to set up initially.

Navigating these options can seem daunting, which is why many businesses turn to specialist advisors like us at WeCovr to clarify the process and find the most suitable structure.

Step 4: The Trigger Event (Death or Critical Illness)

When a shareholder dies or is diagnosed with a qualifying critical illness, the plan is activated. The relevant party (the surviving shareholders or the trust) makes a claim on the insurance policy.

Step 5: The Payout and Share Purchase

The insurer pays the claim. The lump sum is then used exactly as intended: to buy the shares from the deceased shareholder's estate at the pre-agreed price. The family receives the money, the shares are transferred, and the surviving shareholders continue to run the business with 100% control.

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Structuring Your Shareholder Protection Policy: Key Options

Choosing the right structure is vital for the plan to work effectively and tax-efficiently. The use of a Business Trust is often considered the gold-standard approach, especially for companies with more than two shareholders.

Here's why a Business Trust is so often recommended:

  • Simplicity: Instead of a complex web of individual policies, one policy is taken out on each shareholder and placed in the trust. With 5 shareholders, this is 5 policies, not the 20 required under a 'Life of Another' arrangement.
  • Tax Efficiency: When the payout is made to the trust, it is not considered part of the company's trading receipts (avoiding Corporation Tax) nor is it part of the deceased's or surviving shareholders' estates (avoiding Inheritance Tax). The cash is delivered directly to where it is needed, tax-free.
  • Fairness: All shareholders are trustees, ensuring the process is managed transparently and according to the rules set out in the trust deed.
  • Continuity: If a shareholder leaves the company, it is much easier to manage their policy within the trust than to reassign multiple 'Life of Another' policies.

Integrating Critical Illness Cover: Planning for Sickness, Not Just Death

The disruption caused by a shareholder suffering a major health crisis can be just as damaging as their death. They may be unable to work for a prolonged period, or permanently, yet still retain their ownership stake and expect to draw an income.

Adding critical illness cover to a shareholder protection policy provides a solution. If a shareholder is diagnosed with a specified condition (such as cancer, heart attack, or stroke), the policy pays out. The lump sum can then be used to buy their shares, allowing them to exit the business with financial security and focus on their recovery.

Consider the statistics:

  • Cancer Research UK reports that around 1,000 people are diagnosed with cancer every day in the UK. Many of these are of working age.
  • The British Heart Foundation states there are over 100,000 hospital admissions for heart attacks each year in the UK.

These are not rare events. Integrating critical illness cover provides a comprehensive plan that protects the business against both death and serious illness, providing peace of mind for all owners.

The Crucial Role of a Cross-Option Agreement

An insurance policy on its own is not enough. Without a corresponding legal agreement, the insurance payout creates a new problem: the surviving shareholders have the money, but the deceased's family is under no obligation to sell the shares to them.

A Cross-Option Agreement solves this. It's a binding legal contract that creates two corresponding 'options':

  1. The 'Call' Option: Gives the surviving shareholders the right to buy the deceased's shares at a pre-agreed price or valuation mechanism.
  2. The 'Put' Option: Gives the deceased shareholder's estate the right to sell the shares to the surviving shareholders.

Because the agreement is reciprocal and signed by everyone in advance, it ensures the transaction will happen. It removes emotion and potential for dispute from the process, guaranteeing that the insurance funds are used for their intended purpose. Drafting this document requires a commercial solicitor to ensure it is robust and tailored to the company's articles of association.

Valuing Your Business for Insurance Purposes

Setting the right level of cover is essential. Too little, and the shareholders will face a shortfall when trying to buy the shares. Too much, and you are overpaying on premiums.

A professional valuation, agreed upon by all shareholders, is the first step. While an accountant can provide a formal valuation, shareholders can often agree on a formula to be used. The key is consistency and regular reviews.

Best Practice for Valuation:

  • Agree the method upfront: Document the chosen valuation formula in the shareholders' agreement.
  • Review annually: A business's value can change dramatically in a year. An annual review of the company's valuation and the sum assured on the policies is critical. Most shareholder protection policies have options to increase the cover (within certain limits) without further medical underwriting to accommodate business growth.
  • Factor in debt: When valuing the company, consider any director's loans or other business debts that may need to be repaid upon a shareholder's death.

Tax Implications of Shareholder Protection Insurance

The tax treatment of shareholder protection is complex and depends heavily on how the policies are structured. Professional advice is non-negotiable, but here are the general principles in the UK:

  • Premiums: If the policy is owned by the shareholders (either 'Life of Another' or via a Business Trust), the premiums are typically paid by the individuals from their post-tax income. If the company pays the premiums on their behalf, it is usually treated as a P11D benefit-in-kind. Premiums are not normally allowable as a business expense for Corporation Tax purposes.
  • Payouts: When structured correctly using a business trust, the policy proceeds on death are generally paid free of Income Tax, Capital Gains Tax, and Inheritance Tax. This is the most significant advantage of proper structuring. If a company share purchase method is used, the payout to the company could be subject to tax, making it a less favourable option in many cases.

Given the complexities, it's vital to work with both a financial advisor and a tax specialist to ensure the arrangement is set up for maximum efficiency.

Who Needs Shareholder Protection Insurance?

If your business is a separate legal entity with two or more owners who are critical to its success, you should be considering this cover. It is particularly vital for:

  • Private Limited Companies (Ltd): The classic scenario where shares are owned by a small group of directors.
  • Limited Liability Partnerships (LLPs): The equivalent cover is known as 'Partnership Protection', but the principle is identical. It provides funds for the remaining partners to buy out a deceased partner's interest in the LLP.
  • Tech Start-ups and High-Growth Companies: Where the founders' expertise is intertwined with the company's value.
  • Family-Run Businesses: Especially where some family members are active in the business and others are not. Protection ensures that non-active heirs receive a fair cash inheritance, while active members retain control.
  • Professional Practices: Such as architectural firms, accountancies, or dental practices, where the partners are the business.

How to Get the Right Shareholder Protection Cover

Putting a comprehensive plan in place involves a few methodical steps.

  1. Open a Dialogue: The first step is for all shareholders to discuss the "what if" scenarios openly and agree in principle on the need for protection.
  2. Get a Professional Business Valuation: Agree on the current value of the business and the value of each shareholder's stake.
  3. Seek Legal Advice: Engage a commercial solicitor to draft a robust cross-option agreement that reflects your intentions.
  4. Work with a Specialist Broker: This is where expert advice is invaluable. A specialist broker can guide you through the process from start to finish.

At WeCovr, we specialise in helping businesses navigate the complexities of shareholder protection. We don't just sell a policy; we help you build a strategy. We compare plans and prices from all the major UK insurers to find a solution that fits your company's unique structure, valuation, and budget.

Furthermore, we believe in supporting the long-term health of the business leaders we protect. As a value-add for our clients, we provide complimentary access to CalorieHero, our proprietary AI-powered calorie and nutrition tracking app. It’s our way of going above and beyond, encouraging the wellbeing that underpins every successful business.

Beyond Shareholder Protection: A Holistic Approach to Business Protection

Shareholder Protection is one pillar of a comprehensive business protection strategy. Depending on your company's circumstances, you may also need to consider:

  • Key Person Insurance: To protect the business from the financial impact of losing a top salesperson, technical expert, or the CEO.
  • Executive Income Protection: To provide a replacement income for a director or key employee if they are unable to work due to long-term illness or injury, allowing the business to hire a temporary replacement without financial strain.
  • Relevant Life Cover: A tax-efficient way for a company to provide a death-in-service benefit for an employee or director, with premiums typically being an allowable business expense.

A specialist advisor can help you assess your needs across all these areas, creating a safety net that protects your business from multiple angles.

Conclusion: Securing Your Business's Legacy

Shareholder Protection Insurance is not an expense; it's a critical investment in the stability and longevity of your business. It replaces uncertainty with a clear, funded plan. It protects relationships by ensuring fairness for both the surviving owners and the family of a departed colleague.

By taking the time to value your business, draft the right legal agreements, and put the correct insurance in place, you are doing more than just protecting an asset. You are securing jobs, honouring your partnership, and ensuring that the business you have worked so hard to build has a stable and prosperous future, no matter what happens.


What is the difference between Shareholder Protection and Key Person cover?

Shareholder Protection is designed to help the surviving shareholders buy the deceased's shares from their estate, ensuring the ownership of the company is retained. The payout goes to the shareholders (or a trust). Key Person cover is designed to protect the business itself from the financial loss of losing a vital employee. The payout goes to the business to cover lost profits or recruitment costs.

Do we need a business trust for shareholder protection?

While not legally mandatory, using a business trust is highly recommended, especially for companies with three or more shareholders. It is the most tax-efficient method, ensuring the payout is not subject to corporation tax or inheritance tax. It also simplifies administration and provides a clear legal framework for the transaction.

How often should we review our shareholder protection policy?

You should review your policy and the business valuation at least once a year. The value of your business can change quickly, and it's vital that your level of insurance cover keeps pace. Most policies have a 'guaranteed insurability option' that allows you to increase the cover in line with business growth without new medical checks.

What happens if a shareholder leaves the company?

If a shareholder leaves for reasons other than death or critical illness, the policy on their life can be dealt with in several ways. The departing shareholder might be able to take the policy with them, or the policy could be cancelled. If a Business Trust is used, the departing shareholder can simply be removed as a trustee and beneficiary, making the process much smoother.

Is shareholder protection insurance tax-deductible?

Generally, no. The premiums for shareholder protection insurance are not typically considered an allowable business expense for Corporation Tax purposes in the UK. This is because the policy is for the benefit of the shareholders, not for the trade of the business itself. You should always seek professional tax advice on your specific circumstances.

How much does shareholder protection cost?

The cost (premium) depends on several factors: the amount of cover needed (based on the business valuation), the age and health of the shareholders, whether they smoke, and the term of the policy. Including critical illness cover will also increase the premium. Working with a broker like WeCovr allows you to compare quotes from across the market to find the most competitive price for your needs.

Sources

  • Office for National Statistics (ONS): Mortality and population data.
  • Association of British Insurers (ABI): Life and protection market publications.
  • MoneyHelper (MaPS): Consumer guidance on life insurance.
  • NHS: Health information and screening guidance.

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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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