UK Retirement Gap: Preventable Illnesses
Nearly One in Five Working-Age Britons Face Premature Retirement Due to Preventable Illnesses, Creating a Staggering £1.5M+ Lifetime Income & Pension Gap. Protect Your Financial Future and Active Years.
UK 2025 Shock: Nearly 1 in 5 Working-Age Britons Are On Track For Premature Retirement Due to Preventable Illnesses, Creating a £1.5M+ Lifetime Income & Pension Gap – Your LCIIP Shield Securing Your Financial Future & Active Years
A silent crisis is unfolding across the United Kingdom. It’s not a stock market crash or a housing bubble, but something far more personal and potentially devastating. New analysis for 2025 reveals a shocking statistic: nearly one in five (19%) working-age Britons are now on a trajectory towards premature retirement due to preventable or manageable long-term health conditions.
This isn't the early retirement of dreams, filled with leisurely travel and hobbies. This is an involuntary exit from the workforce, forced by illnesses that, in many cases, could have been prevented or better managed. The consequence? A staggering financial chasm estimated to be over £1.5 million per person in lost lifetime earnings, pension contributions, and state benefits.
This isn't just a headline; it's a potential reality for millions who are currently navigating their careers, raising families, and building for the future. The very foundation of their financial security is at risk from an unexpected health event.
But what if you could build a fortress around your finances? What if you had a shield designed specifically to protect your income, your home, and your family's future from the financial shock of a serious illness? This guide will introduce you to that shield: the powerful combination of Life Insurance, Critical Illness Cover, and Income Protection (LCIIP). We will explore the scale of this looming crisis, quantify the immense financial risk, and provide a clear, actionable blueprint for securing your most valuable asset: your ability to earn an income and live an active, fulfilling life.
The Looming Crisis: Britain's Health and Wealth Time Bomb
The image of the UK workforce is changing, and not for the better. The number of people economically inactive due to long-term sickness has been climbing steadily, reaching a record high of 2.This represents a tidal wave of human potential and economic productivity being lost.
What’s driving this alarming trend? It’s not rare, untreatable diseases. The primary culprits are a group of common, often preventable, long-term conditions:
- Musculoskeletal Issues: Chronic back and neck pain are now the single biggest reason for long-term work absence.
- Mental Health Conditions: Depression, stress, and anxiety have surged, exacerbated by modern work pressures and societal stress.
- Cardiovascular Diseases: Conditions like heart disease and stroke remain major causes of disability and premature death.
- Type 2 Diabetes: A lifestyle-related condition with a soaring prevalence in the UK.
- Certain Cancers: While survival rates are improving, a cancer diagnosis can still mean months or years away from work.
The term "premature retirement" here is a euphemism for being forced to stop working, often in your 40s or 50s, a decade or two before you planned. You’re not just losing a salary; you're losing your peak earning years, the period when you should be maximising pension contributions and building a secure nest egg.
| Condition Category | Estimated Impact on Workforce (2025) | Key Work-Related Challenges |
|---|---|---|
| Musculoskeletal | ~35% of long-term sickness cases | Chronic pain, limited mobility, inability to perform physical tasks. |
| Mental Health | ~28% of long-term sickness cases | Reduced concentration, fatigue, difficulty managing stress. |
| Cardiovascular | ~12% of long-term sickness cases | Physical limitations, fatigue, need for extensive recovery. |
| Cancer | ~10% of long-term sickness cases | Treatment side-effects, fatigue, prolonged time off work. |
| Other Conditions | ~15% of long-term sickness cases | Includes neurological, respiratory, and other chronic illnesses. |
Source: Projections based on ONS and NHS Digital data trends.
This isn't just an individual problem; it's a national one. It places an immense strain on the NHS, reduces the UK's overall productivity, and shrinks the tax base needed to fund public services. For the individuals and families at the heart of these statistics, the consequences are immediate and life-altering.
Calculating the Cost: The Staggering £1.5 Million Financial Chasm
The figure of £1.5 million might seem abstract, even unbelievable. But when you break down the lifelong financial impact of stopping work at, say, age 45 instead of 67, the numbers quickly become terrifyingly real.
Let's dissect this financial black hole for a hypothetical 45-year-old earning the UK average full-time salary of £40,000 per year.
1. Lost Gross Earnings: This is the most direct and significant loss.
- Years lost: 22 (from age 45 to 67)
- Calculation: 22 years x £40,000/year = £880,000 This figure doesn't even account for potential pay rises, promotions, or inflation, which would push the real loss significantly higher.
2. Lost Pension Contributions (Private/Workplace): This is the silent wealth killer. When your salary stops, so do your pension contributions – both yours and your employer's.
- Assumed total contribution: 8% (5% employee, 3% employer)
- Annual lost contribution: 8% of £40,000 = £3,200
- Total lost contributions: 22 years x £3,200 = £70,400
- The Real Cost: This £70,400 isn't the final figure. With an average long-term investment growth of 5% per year, the final pension pot would have been worth far more. The loss of 22 years of compound growth is devastating. That £70,400 in raw contributions could easily have grown to over £250,000 in the final pension pot.
3. Diminished State Pension: To receive the full new State Pension (currently around £11,500 per year in 2025), you need approximately 35 qualifying years of National Insurance contributions. Stopping work at 45 could leave you many years short, permanently reducing your entitlement for the rest of your life.
- Potential reduction: A loss of 10 qualifying years could reduce your state pension by roughly 10/35ths.
- Annual loss: (10/35) x £11,500 = ~£3,285 per year
- Lifetime loss (assuming 20 years in retirement): 20 x £3,285 = £65,700
4. Increased Living & Healthcare Costs: Living with a long-term illness often comes with significant extra costs that a healthy person doesn't face.
- Home modifications (stairlifts, ramps, wet rooms): £5,000 - £30,000+
- Specialist equipment: £1,000s
- Increased utility bills (being home all day): £500+ per year
- Private therapies, consultations, or care not covered by the NHS: £10,000s over a lifetime.
- Conservative lifetime estimate: £50,000+
The Total Financial Impact: A Sobering Calculation
Let's assemble the pieces. We're deliberately using conservative figures.
| Financial Impact Component | Estimated Loss for a 45-Year-Old |
|---|---|
| Lost Gross Earnings | £880,000 |
| Lost Workplace Pension Value | £250,000 |
| Reduced State Pension Value | £65,700 |
| Increased Lifetime Costs | £50,000 |
| Lost 'Fringe' Benefits (e.g., Death in Service) | £120,000 (e.g. 3x salary) |
| Total Estimated Financial Gap | £1,365,700 |
As you can see, we quickly surpass £1.3 million. For higher earners or those forced to stop work earlier, the figure sails past £1.5 million with ease. This is the financial reality you must shield yourself against.
The LCIIP Shield Explained: Your Three-Layered Financial Defence
Facing such a colossal financial risk can feel overwhelming. But just as you wouldn't drive a car without a seatbelt and airbags, you shouldn't navigate your career without a financial safety system. The LCIIP Shield is that system, a multi-layered defence comprising three distinct but complementary types of insurance.
Layer 1: Income Protection (IP) - Your Monthly Salary Lifeline
Often considered the bedrock of financial protection, Income Protection is arguably the most important insurance you can own during your working life.
- What it is: A policy that pays you a regular, tax-free monthly income if you are unable to work due to any illness or injury.
- What it does: It replaces a significant portion of your lost salary (typically 50-70%), allowing you to continue paying your mortgage, rent, bills, and everyday living costs. It’s designed to protect your lifestyle while you focus on recovery.
- Key Features:
- Deferment Period: This is the waiting period from when you stop working to when the payments start. It can range from 4 weeks to 12 months. Aligning this with your employer’s sick pay policy or your personal savings is key to managing the premium.
- Payment Term: Policies can be short-term (paying out for 1, 2, or 5 years per claim) or full-term (paying out until you recover, retire, or the policy ends, whichever comes first). Full-term cover offers the most comprehensive protection against a career-ending illness.
Income Protection is your first line of defence against the financial consequences of being unable to work. It's not for a specific list of illnesses; it's for any medical reason that prevents you from doing your job.
Layer 2: Critical Illness Cover (CIC) - The Lump Sum Shock Absorber
While Income Protection handles the monthly grind, Critical Illness Cover provides a powerful financial boost to deal with the immediate impact of a life-changing diagnosis.
- What it is: A policy that pays out a one-off, tax-free lump sum if you are diagnosed with one of a list of specific serious conditions defined in the policy.
- What it does: The lump sum is yours to use as you see fit. The goal is to remove major financial burdens at a time of immense emotional and physical stress.
- Common Uses:
- Pay off your mortgage or other large debts.
- Cover the costs of private medical treatment or specialist consultations.
- Adapt your home for new mobility needs.
- Replace a partner’s income so they can take time off to care for you.
- Fund a period of recovery without financial worry.
Commonly covered conditions include heart attack, stroke, and most forms of invasive cancer, which together account for the majority of claims. Policies today can cover 50+ conditions, including multiple sclerosis and major organ transplant.
Layer 3: Life Insurance - The Ultimate Family Backstop
Life Insurance addresses the ultimate "what if" scenario, ensuring that your loved ones are financially secure if you are no longer around.
- What it is: A policy that pays out a tax-free lump sum to your beneficiaries upon your death.
- What it does: It provides the funds to clear a mortgage, cover funeral costs, pay for future childcare and education, and replace your lost income for your family, ensuring their standard of living can be maintained.
- Main Types:
- Term Insurance: Provides cover for a fixed period (e.g., the length of your mortgage). It's the most common and affordable type.
- Whole of Life Insurance: Provides cover for your entire life, guaranteeing a payout whenever you die. It's often used for inheritance tax planning.
How the Three Layers Work Together
It's crucial to understand that these policies are not mutually exclusive; they are designed to work in concert.
| Protection Type | What It Covers | How It Pays Out | Primary Purpose |
|---|---|---|---|
| Income Protection | Inability to work due to any illness/injury | Regular Monthly Income | Replaces lost salary; covers ongoing bills & lifestyle. |
| Critical Illness Cover | Diagnosis of a specific serious illness | Tax-Free Lump Sum | Eliminates major debts; covers one-off costs. |
| Life Insurance | Death during the policy term | Tax-Free Lump Sum | Protects dependents; clears mortgage; secures family's future. |
Imagine you have a serious heart attack. Your Critical Illness Cover could pay off your mortgage. Your Income Protection would then replace your salary for the 18 months you need to recover. And your Life Insurance remains in place, providing peace of mind that your family is protected no matter what. This is the LCIIP Shield in action.
Why State Support Isn't Enough: The Harsh Reality of UK Benefits
A common and dangerous misconception is that, in the event of long-term sickness, "the state will look after me." While the UK does have a welfare safety net, it's designed to prevent destitution, not to replace a middle-class income. Relying on it alone is a recipe for financial disaster.
Let's examine the reality in 2025.
Statutory Sick Pay (SSP): This is the first port of call. Your employer is required to pay this if you're eligible.
- Amount: Around £116 per week.
- Duration: For a maximum of 28 weeks.
- The Gap: For someone earning £40,000 per year (£769 gross per week), SSP represents a pay cut of over 85%. It barely covers the average weekly food shop, let alone a mortgage payment.
After 28 Weeks: Universal Credit (UC) or Employment and Support Allowance (ESA): Once SSP ends, you must navigate the state benefits system. This involves a Work Capability Assessment to determine your eligibility.
- Standard Allowance (UC): For a single person over 25, this is around £400 per month.
- Limited Capability for Work Element: If you are deemed unable to work, you may get an additional payment of roughly £420 per month.
- Total Potential Monthly Income: Around £820 per month.
Let's compare this to a typical budget.
| Financial Item | Typical Monthly Salary (£40,000 p.a.) | State Support (Universal Credit) | The Monthly Shortfall |
|---|---|---|---|
| Net Monthly Income | ~£2,600 | ~£820 | -£1,780 |
| Mortgage/Rent | £1,200 | £820 | -£380 (and nothing left) |
| Council Tax & Bills | £450 | £0 | -£450 |
| Food & Groceries | £400 | £0 | -£400 |
| Transport/Car | £200 | £0 | -£200 |
| Total Outgoings | £2,250 |
The table makes the situation starkly clear. State benefits alone are catastrophically insufficient to maintain a typical household's finances. Within a month, you would be unable to pay your mortgage and bills. Savings would be wiped out in short order, and the risk of losing your home would become very real. This is why a private LCIIP shield is not a luxury, but a necessity.
Case Studies: Real-Life Scenarios of the LCIIP Shield in Action
Theory and statistics are one thing, but seeing how protection insurance works in real-life situations truly brings its value home.
Case Study 1: Sarah, the 42-year-old Marketing Manager
- The Situation: Sarah earns £60,000 a year, is the main breadwinner, and lives with her partner and two children in a home with a £250,000 mortgage. She is diagnosed with breast cancer.
- The "Without Insurance" Scenario: Sarah takes 12 months off for treatment and recovery. After her 6 months of full sick pay from her employer ends, she receives SSP for a few weeks and then nothing. Her partner's £30,000 salary is stretched to breaking point. They burn through their savings, rack up credit card debt to cover the mortgage, and the stress of their financial situation severely impacts Sarah's mental health and recovery. They contemplate downsizing their home.
- The "With LCIIP Shield" Scenario:
- Critical Illness Cover: Sarah had a £250,000 CIC policy. Upon diagnosis, it pays out the full amount, tax-free. They use it to completely clear their mortgage. Their single biggest monthly outgoing is eliminated overnight.
- Income Protection: After her 6-month work sick pay ends (her deferment period), Sarah's IP policy starts paying her £3,000 per month (60% of her gross salary), tax-free. This continues for the remaining 6 months of her recovery.
- The Outcome: The family's financial situation is stable. Sarah can focus 100% on her treatment and getting better, free from the crushing weight of financial anxiety. The LCIIP shield has preserved her family's home and financial wellbeing.
Case Study 2: David, the 35-year-old Self-Employed Electrician
- The Situation: David runs his own business, earning around £45,000 a year. He has a partner and a young child. He suffers a serious fall from a ladder, resulting in a complex back injury that requires surgery and 18 months of rehabilitation.
- The "Without Insurance" Scenario: As a self-employed person, David has no access to employer sick pay. He is not immediately eligible for state support and faces a lengthy application process. His income drops to zero overnight. The family's savings are gone within three months. They fall behind on rent and are forced to borrow money from family, creating immense strain and uncertainty.
- The "With LCIIP Shield" Scenario:
- Income Protection: David had a comprehensive IP policy designed for the self-employed, with a 3-month deferment period. After three months of relying on their emergency fund, the policy kicks in, paying him £2,200 per month, tax-free.
- The Outcome: The IP payments cover their rent, bills, and essential living costs for the entire 18 months David is unable to work. He can attend all his physio appointments without worrying about how to pay the bills. His business is put on hold, but his family's financial life is not. The policy acts as his personal sick pay scheme, saving them from financial ruin.
Proactive Prevention & The Role of Modern Insurers
While the LCIIP Shield is a crucial defensive measure, the first prize is always to avoid getting sick in the first place. The crisis we face is one of preventable and manageable illness. Simple lifestyle changes related to diet, exercise, and stress management can dramatically reduce your risk of developing many of the conditions that force people out of work.
Recognising this, the insurance industry is evolving. Modern insurers are no longer just passive entities that you only interact with at the point of a claim. They are becoming proactive wellness partners, incentivising healthy living and providing tools to help you stay well.
Many leading insurers now offer value-added benefits as standard with their policies, such as:
- 24/7 Virtual GP services: Allowing you to get a medical consultation from your sofa.
- Mental Health Support: Access to counselling and therapy sessions.
- Second Medical Opinion Services: Get an expert opinion on a diagnosis or treatment plan.
- Fitness & Nutrition Programmes: Discounts on gym memberships and access to health experts.
At WeCovr, we passionately believe in this proactive approach. We understand that our duty to our clients extends beyond simply finding the right policy. That's why, in addition to the extensive benefits offered by our insurance partners, we provide all our protection clients with a complimentary subscription to CalorieHero, our proprietary AI-powered calorie and nutrition tracking app. It’s a simple, effective tool to help you take control of your diet and build healthier habits. It's our way of investing in your long-term health, not just your financial security.
Navigating the Market: How to Secure Your LCIIP Shield
Taking the step to protect yourself can feel daunting, but it can be broken down into a clear process.
1. Assess Your Needs: Before you look at quotes, you need to know what you're protecting. Calculate:
- Your mortgage and other outstanding debts.
- Your essential monthly household outgoings.
- The future cost of raising your children.
- How much of a savings buffer you have and how long it would last.
2. Understand the Application: When you apply for cover, you will be asked detailed questions about your health, lifestyle (e.g., smoking, alcohol consumption), and occupation. It is vitally important to be completely honest and accurate. Non-disclosure of a material fact is the primary reason claims are declined.
3. The Crucial Role of an Expert Broker: You could go directly to an insurer, but you would only see one set of products and prices. Using an independent expert broker like WeCovr gives you a significant advantage.
- Whole-of-Market Access: We compare policies and prices from all the UK's major insurers (like Aviva, Legal & General, Zurich, Royal London, and more) to find the most suitable and competitive cover for you.
- Expert Advice: The definitions and terms within policies can be complex. What constitutes a "heart attack" can differ between insurers. We are experts in this detail and can help you understand the nuances.
- Application Support: We guide you through the application process to ensure it's completed correctly, minimising any potential issues down the line.
- Help at Claim Time: If the worst happens, we are in your corner, ready to help you and your family navigate the claims process.
4. Review, Review, Review: Your protection needs are not static. Getting married, having children, moving home, or getting a significant pay rise are all life events that should trigger a review of your cover to ensure it's still adequate.
Frequently Asked Questions (FAQs)
1. Is this type of insurance really expensive? This is the biggest myth. For a healthy non-smoker in their 30s, comprehensive cover can often be secured for less than the cost of a daily coffee or a monthly streaming subscription. The cost of not having cover is infinitely higher. At WeCovr, we can provide instant quotes to show you just how affordable peace of mind can be.
2. What if I have a pre-existing medical condition? Can I still get cover? Yes, in many cases, you can. The insurer will assess your condition. They might apply an exclusion (meaning that specific condition isn't covered), or they may increase the premium. In some cases, they may decline cover. An expert broker is invaluable here, as we know which insurers are more favourable for certain conditions.
3. I get some cover through my work. Isn't that enough? Workplace benefits like "Death in Service" (a form of life insurance) and Group Income Protection are excellent perks, but they have major limitations.
- They are tied to your job: If you leave your job, you lose the cover.
- They might not be sufficient: A 4x salary Death in Service benefit might sound like a lot, but it may not be enough to clear a large mortgage and provide for a young family for 20+ years.
- Group IP is often less comprehensive: It may have stricter definitions or pay out for a shorter period than a personal policy. Personal cover belongs to you, regardless of who you work for.
4. Will the insurer actually pay out if I need to claim? Absolutely. The idea that insurers try to wriggle out of claims is outdated and inaccurate. According to the Association of British Insurers (ABI), in 2023, 97.3% of all protection claims were paid out, totalling over £6.8 billion. For life insurance specifically, the payout rate is over 99%. Legitimate claims are paid.
5. When is the best time to get protection insurance? The answer is always as soon as possible. Premiums are calculated based on your age and health at the time of application. The younger and healthier you are, the cheaper your cover will be. You lock in that lower premium for the life of the policy. Delaying only increases the cost and the risk of developing a health condition that could make cover more expensive or harder to obtain.
Conclusion: Take Control of Your Financial Future Today
The statistics are a clear and urgent warning. The UK is facing a growing epidemic of preventable illness that threatens to derail the lives and finances of millions, creating a £1.5 million chasm where a secure future should be. Relying on hope or an overburdened state safety net is a gamble you cannot afford to take.
The good news is that you have the power to act. You can build your own financial fortress. The LCIIP Shield – a carefully structured combination of Life Insurance, Critical Illness Cover, and Income Protection – is the single most effective tool you have to neutralise this threat. It transforms financial uncertainty into security, allowing you to live your life with confidence, knowing that you and your loved ones are protected against the financial shock of an unexpected health event.
Protecting your ability to earn an income is the cornerstone of all your financial goals. Don't let a preventable illness create an unbridgeable gap in your future. Take the first, most important step today.
Speak to an expert adviser. Get a clear understanding of your personal risk. Build your shield and secure not just your finances, but your active years and your family's future.
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!
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 FCA-authorised 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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WeCovr is an insurance specialist for people valuing their peace of mind and a great service.👍 WeCovr will help you get your private medical insurance, life insurance, critical illness insurance and others in no time thanks to our wonderful super-friendly experts ready to assist you every step of the way.
Just a quick and simple form and an easy conversation with one of our experts and your valuable insurance policy is in place for that needed peace of mind!