The Exeter Life Insurance (2026) Complete Guide to Cover, Underwriting, Pricing & Claims

A comprehensive guide to The Exeter’s life insurance – product structure, underwriting, exclusions, optional benefits, pricing factors and claims journey

The Exeter has carved out a distinct and respected position within the UK protection market. Known for its mutual status—meaning it's owned by its members, not shareholders—and its specialist underwriting approach, The Exeter is often the go-to insurer for individuals who may struggle to find cover elsewhere.

This guide provides a definitive look at The Exeter's life insurance proposition for 2026. We will delve into their product structure, their unique underwriting philosophy for people with health conditions, optional benefits like critical illness cover, and what to expect from their pricing and claims process. As expert protection advisers, we at WeCovr believe in empowering you with transparent, in-depth knowledge to help you make the best decision for your family's financial security.

Who Are The Exeter? A Mutual with a Modern Approach

Founded in 1927, The Exeter is a friendly society with a long history of protecting its members. Unlike publicly listed companies that must deliver profits to shareholders, The Exeter's mutual status means its focus is entirely on its policyholders (members). Any profits are reinvested back into the business to improve products, services, and pricing.

Key Facts about The Exeter:

• Mutual Status: Owned by and run for its members. This ethos often translates into a more member-centric approach to claims and service.
• Protection Specialists: They focus purely on protection insurance, including life insurance, income protection, and health insurance.
• Underwriting Expertise: They have a strong reputation for offering cover to people with pre-existing medical conditions, such as diabetes, high BMI, or a history of mental health issues.
• Award-Winning: The Exeter frequently wins industry awards for its products, service, and claims handling, reflecting its high standing among financial advisers and consumers.

This specialism makes The Exeter a crucial part of the UK insurance landscape. While many mainstream insurers target the "super healthy," The Exeter provides a vital pathway to protection for a much broader range of people.

The Exeter Life Insurance: Understanding 'Real Life Cover'

The Exeter's core life insurance product is called The Exeter Real Life Cover. It is a form of term life insurance, which is the most common and affordable type of life cover in the UK.

Term life insurance is straightforward: it's designed to pay out a tax-free lump sum if you pass away during a specified period (the "term"). If you survive the term, the policy ends, and no money is paid out. Its purpose is to provide a financial safety net for your loved ones at the time they need it most.

How Does Real Life Cover Work?

You choose two key things:

1. The Sum Assured: The size of the lump sum payout (e.g., £250,000).
2. The Term: How long you want the cover to last (e.g., 25 years).

You pay a fixed monthly premium. If you die within the term, The Exeter pays the sum assured to your beneficiaries. If you stop paying premiums, your cover will cease.

The Exeter offers three main types of Real Life Cover to suit different needs:

Real-Life Scenario: Family Income Benefit in Action

• Client: Sarah, 35, a non-smoker, is the main earner in her family. She has a partner and two young children.
• Need: She wants to ensure her family can maintain their lifestyle if she were to pass away. A £400,000 lump sum feels abstract; she's more worried about the monthly bills.
• Solution: Sarah takes out a Family Income Benefit policy with a 25-year term, set to pay out £30,000 per year.
• Outcome: Tragically, Sarah passes away 5 years into the policy. The Exeter begins paying her family £30,000 per year, tax-free. This income will continue for the remaining 20 years of the policy term, providing a total payout of £600,000 (£30,000 x 20 years) to support them until the children are adults.

Optional Benefits: Enhancing Your Protection with Critical Illness Cover

While life insurance protects your family financially if you die, what happens if you suffer a serious illness but survive? This is where Critical Illness Cover (CIC) becomes invaluable.

The Exeter allows you to add CIC to your Real Life Cover policy. This creates a comprehensive plan that pays out your chosen sum assured either on death or on diagnosis of a specified critical illness, whichever happens first.

What is Critical Illness Cover?

CIC is designed to pay a tax-free lump sum if you are diagnosed with one of a list of predefined serious medical conditions. The money can be used for anything you need, providing a crucial financial buffer during a difficult time. Common uses include:

• Clearing your mortgage or other debts.
• Replacing lost income if you need to stop working.
• Paying for private medical treatment or specialist care.
• Making adaptations to your home (e.g., installing a ramp).
• Simply reducing financial stress so you can focus on recovery.

The Exeter's Approach to Critical Illness Cover

The Exeter is known for offering a high-quality CIC policy with a broad range of conditions covered. While all insurers cover the "big three"—cancer, heart attack, and stroke—The Exeter provides comprehensive definitions and covers numerous other conditions.

Key features of The Exeter's CIC:

• Core Conditions: Covers over 50 conditions, including most types of cancer, heart attack, stroke, multiple sclerosis, and motor neurone disease.
• Additional Payments: For certain less severe conditions (e.g., carcinoma in situ), they may make a partial payment (e.g., 25% of the sum assured, up to a limit like £25,000) without ending the main policy. This provides a payout while keeping your full cover in place.
• Children's Cover: This is often included as standard. It provides a smaller lump sum if your child is diagnosed with a specified critical illness, helping cover costs and time off work. The Exeter's children's cover is typically very comprehensive.

Example Critical Conditions Covered by The Exeter

This is an illustrative list. The exact conditions and definitions are detailed in the policy's Key Features Document.

A Deep Dive into The Exeter's Underwriting Philosophy

This is where The Exeter truly sets itself apart. "Underwriting" is the process an insurer uses to assess the risk of insuring you. It involves reviewing your age, health, lifestyle, and medical history to decide whether to offer you cover and at what price.

Many insurers use automated systems that favour applicants with clean bills of health. If you have a pre-existing condition, you may face an automatic premium increase or even a decline.

The Exeter takes a more individual, manual approach. Their underwriters are specialists in assessing more complex medical histories, aiming to offer cover wherever possible.

Specialist Underwriting for Health Conditions

The Exeter has built a strong reputation for considering applications from individuals with conditions that other insurers might decline, including:

• Diabetes (Type 1 and Type 2): They have a deep understanding of diabetes management and will look at factors like your HbA1c readings, control, and any complications to offer the fairest terms possible.
• High BMI: While many insurers have strict BMI cut-offs, The Exeter is known to be more flexible, assessing your overall health rather than just a single number.
• Mental Health Conditions: They have a progressive approach to mental health, including anxiety, depression, or stress. They will consider the full context of your condition, treatment, and stability.
• Heart Conditions: For individuals with a history of heart attack or other cardiac issues, The Exeter will conduct a thorough assessment to see if cover can be offered, often after a certain period of stability.

The Underwriting Process Explained

1. Application: You complete an application form with questions about your health, lifestyle (including smoking and alcohol consumption), occupation, and hobbies. It is vital to be completely honest.
2. Initial Assessment: The Exeter's systems and underwriters review your answers.
3. Medical Evidence (if required): For larger sums assured or if you disclose a medical condition, they may need more information. This could involve:
   • A GP Report (GPR): They will write to your doctor (with your permission) for a report on your medical history.
   • Nurse Screening: A nurse may visit you at home to take basic measurements like height, weight, blood pressure, and a blood or saliva sample.
4. The Decision (Outcome): Based on all the evidence, the underwriter will make a decision:
   • Standard Rates: You are accepted on standard terms with no change to the quoted price.
   • Rated Premiums (A 'Loading'): You are accepted, but your premium is increased by a certain percentage (e.g., +50% or +150%) to reflect the higher risk. The Exeter will explain exactly why.
   • Exclusion: You are accepted, but the policy will not pay out for claims related to a specific condition. This is more common on Critical Illness and Income Protection policies than on life insurance.
   • Postponement: The underwriter may decide to delay a decision for a period (e.g., 6-12 months) to wait for a condition to stabilise or for treatment to conclude.
   • Decline: In some high-risk cases, they may be unable to offer cover.

Adviser Insight: The Exeter's willingness to manually underwrite complex cases is a significant advantage. As brokers, we often approach The Exeter for clients who have been quoted high premiums or declined by other insurers. Their expertise frequently results in a more favourable and affordable outcome.

Pricing: What Determines The Exeter's Premiums?

The cost of your life insurance premium is not arbitrary. It's a calculated price based on the level of risk the insurer is taking on. The Exeter uses the same fundamental risk factors as other insurers, but their assessment of those factors may differ.

Primary Factors Influencing Your Premium:

Guaranteed vs. Reviewable Premiums

The Exeter's Real Life Cover comes with guaranteed premiums. This is a crucial feature.

• Guaranteed Premiums: Your monthly premium is fixed for the entire policy term. It will not change, regardless of your age or any changes in your health. This provides certainty and makes budgeting easy.
• Reviewable Premiums: Some policies (not typically offered by The Exeter for term assurance) have premiums that are reviewed every 5 or 10 years. The insurer can increase your premiums at the review date, often substantially as you get older.

We at WeCovr almost always recommend guaranteed premiums for personal protection policies, as they offer long-term peace of mind and prevent nasty price shocks in the future.

The Claims Process: The Exeter's Moment of Truth

An insurance policy is only as good as its ability to pay claims. The Exeter prides itself on its claims handling and consistently publishes high payout rates. For 2023, they paid 97% of all life insurance claims.

This high percentage demonstrates that as long as customers provide accurate information at the application stage, The Exeter honours its promise to pay.

Making a Claim

The claims process is designed to be as straightforward as possible during a deeply emotional and stressful time for a family.

1. Contact The Exeter: The claimant (usually the executor of the will or a close family member) needs to contact The Exeter's claims team.
2. Provide Initial Details: The claimant will need to provide the policy number and the name of the person who has passed away.
3. Submit Documentation: The Exeter will request necessary documents to process the claim. This typically includes:
   • The original Death Certificate.
   • The policy document (if available).
   • A completed claim form.
   • Proof of legal entitlement to the policy proceeds (e.g., Grant of Probate, if the policy was not in trust).
4. Assessment & Payout: The claims team assesses the documents and, once validated, arranges for the payment of the sum assured.

The Broker's Role in a Claim: Having a broker like WeCovr on your side can be invaluable during a claim. We can help the claimant liaise with the insurer, understand what's required, and ensure the process runs as smoothly as possible, taking some of the administrative burden away from the grieving family.

Health & Wellness Support: The Exeter's 'HealthWise' Service

Modern protection is about more than just a cheque on death or illness. Leading insurers now provide value-added services that policyholders can use from day one, and The Exeter is a leader in this field with its HealthWise service.

HealthWise is a comprehensive health and wellbeing app, provided free of charge to members (and their immediate family).

Key Features of HealthWise:

• Remote GP Appointments: Book a phone or video consultation with a UK-based GP, often for the same day. This is incredibly useful for getting quick advice, second opinions, or prescriptions without waiting for a local GP appointment.
• Second Medical Opinion: If you or a family member are diagnosed with a serious condition, you can get your case reviewed by a world-leading specialist to confirm the diagnosis and explore treatment options.
• Mental Health Support: Access to a specified number of therapy sessions, including counselling for stress, anxiety, and bereavement.
• Physiotherapy: Get assessed and receive a tailored recovery plan for musculoskeletal issues.
• Dietitian Consultations: Expert advice on nutrition and diet.

This service adds immediate, tangible value to the insurance policy. It's not just a plan for a worst-case scenario; it's a tool to help you and your family manage your health and wellbeing today. This aligns perfectly with our ethos at WeCovr, where we provide all our clients with complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero, to support their wellness goals.

Specialist Cover for Business Owners, Directors, and the Self-Employed

The financial risks of death or serious illness are amplified for business owners and the self-employed. The Exeter’s product suite and underwriting flexibility make them a strong choice in this market.

While their Income Protection is particularly popular with this group, their life and critical illness cover can be structured to solve critical business challenges.

Key Person Insurance

What is it? A life insurance and/or critical illness policy taken out by a business on the life of a crucial employee ("key person"). The business owns the policy, pays the premiums, and is the beneficiary.

How does it work? If the key person dies or becomes critically ill, the policy pays a lump sum to the business. This money is designed to cover the financial impact of their absence, such as:

• Replacing lost profits or revenue generated by that person.
• The cost of recruiting and training a replacement.
• Reassuring lenders and suppliers that the business is stable.

Scenario: A successful tech start-up has a lead developer who is the visionary behind their core product. If she were to die or suffer a stroke, the company's future would be at risk. The company takes out a £1 million Key Person policy on her life. The premium is a legitimate business expense.

Shareholder & Partnership Protection

What is it? A specific arrangement that allows the surviving business owners to buy out a deceased owner's share of the business from their family.

How does it work? Each business partner or shareholder takes out a life insurance policy on the lives of the others. These policies are usually written into a business trust and are linked to a legal agreement called a 'cross-option agreement'.

• If one partner dies, their life insurance policy pays out to the surviving partners.
• This money gives them the capital to purchase the deceased's shares from their estate.
• The deceased's family receives a fair cash value for their shares, and the surviving owners retain full control of the business.

This avoids a situation where the deceased's family, who may have no interest or expertise in the business, become unwilling shareholders, or where the surviving owners are forced to sell the company to pay them out.

Advanced Planning: Whole of Life Cover & Inheritance Tax (IHT)

For some clients, a policy that lasts for a fixed term isn't enough. They need a guarantee of a payout, whenever they die. This is where Whole of Life assurance comes in. It is most commonly used for two purposes: leaving a guaranteed legacy or, more strategically, planning for Inheritance Tax (IHT).

It is crucial to understand how modern Whole of Life policies work, as they are very different from older, more complex plans.

Modern 'Pure Protection' Whole of Life

This is the type of plan that we focus on at WeCovr. It is a straightforward and transparent insurance policy.

• How it works: You pay a premium (usually monthly) for your entire life. The policy guarantees to pay out the agreed sum assured when you die.
• No Cash-In Value: This is a pure protection plan. It has no investment element and no surrender or cash-in value.
• If you stop paying, the cover ends: If you cease paying your premiums at any point, the policy lapses, and you get nothing back.
• Purpose: These plans are transparent, relatively affordable, and perfectly suited for IHT planning or ensuring a specific legacy is left behind. We compare guaranteed cover from across the market to find the most competitive plan for your needs.

Older 'Investment-Linked' Whole of Life

You may have heard of older types of Whole of Life plans that worked very differently. These are now rarely sold for new protection planning.

• How they worked: Part of each premium paid for the life cover element, and the rest was placed into an investment fund (often a 'with-profits' fund).
• Complexity: These plans were complex and expensive. The ultimate payout and the growth of any 'surrender value' depended entirely on the performance of the underlying investments.
• High Charges & Poor Value: Performance was often disappointing, and high management charges eroded value. The surrender value in the early years was often significantly less than the total premiums paid.

The move towards transparent, pure protection Whole of Life plans has been a major positive for UK consumers.

Using Whole of Life for IHT Planning

Inheritance Tax is levied at 40% on the value of your estate above a certain threshold (the 'nil-rate band'). For many families, their home alone can push them over this limit, creating a substantial tax bill that must be paid before assets can be passed to beneficiaries.

A Whole of Life policy is the only way to guarantee a sum of money will be available to pay this tax bill, no matter when you die.

How it works:

1. Calculate your potential IHT liability.
2. Take out a Whole of Life policy for that amount.
3. Crucially, place the policy in an appropriate Trust.
4. When you die, the policy pays out directly to the Trust, outside of your estate.
5. The trustees can then use the money to pay the HMRC tax bill immediately, leaving your estate intact for your heirs.

Get Expert Advice and Compare Your Options

Choosing the right life insurance is one of the most important financial decisions you can make. While The Exeter offers a fantastic proposition, especially for those with health conditions, they are one of many excellent insurers in the UK market.

The key to finding the best policy is to compare the entire market. As independent protection specialists, WeCovr has access to plans from all the UK's leading insurers. Our expert advisers can:

• Understand your unique needs and financial situation.
• Navigate the market to find the insurer best suited to your health profile.
• Help with the application to ensure it's completed correctly.
• Place your policy in trust to ensure the payout is fast, tax-efficient, and goes to the right people.

Let us handle the complexity and find you the most comprehensive and affordable protection for your family or business. Contact us today for a free, no-obligation quote and expert advice.