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Best Life Insurance Companies in the UK 2025

Best Life Insurance Companies in the UK 2025 2025

Choosing a life insurance policy is one of the most significant financial decisions you can make for your family's future. It's a promise of security, ensuring that your loved ones are protected from financial hardship if the unexpected happens. But with a crowded marketplace filled with jargon and complex options, how do you find the right provider?

The UK life insurance market is robust and competitive, with numerous companies vying for your attention. Each offers a unique blend of products, pricing, and additional benefits. Making the right choice isn't just about finding the cheapest premium; it's about securing a policy with a financially strong insurer that has a proven track record of paying claims and offers features that match your specific needs.

This is where we come in. As expert independent brokers, WeCovr spends every day navigating the intricacies of the UK protection market. We've compiled this definitive guide for 2025 to demystify the process. We will dissect the offerings of the UK's leading life insurance companies, compare their policies, and provide you with the clarity needed to make an informed decision.

WeCovr’s independent review of the top UK life insurers, their policies and pricing

When we assess life insurance providers, we look beyond the headline price. Our comprehensive review process considers several critical factors to determine the true value a company offers.

Our Evaluation Criteria:

  • Financial Strength: The insurer's ability to meet its long-term financial obligations. We look for companies with strong credit ratings from agencies like S&P, Moody's, and Fitch.
  • Claims Payout Rate: This is a crucial metric. A high payout rate (typically above 95%) demonstrates an insurer's commitment to honouring its policies. We use the latest available data, usually from the previous calendar year.
  • Customer Service & Reviews: How does the company treat its customers? We consider industry awards, independent financial reviewer ratings (like Defaqto), and real customer feedback from platforms like Trustpilot.
  • Policy Features & Flexibility: This includes the types of cover available, the ability to make changes to your policy, and the inclusion of valuable features like terminal illness cover as standard.
  • Added Value Benefits: In 2025, top insurers offer more than just a cheque. We assess the quality of their wellness programmes, virtual GP services, mental health support, and other perks that can benefit you and your family while you're still alive.
  • Application Process: A smooth, clear, and efficient underwriting process is a sign of a modern, customer-focused insurer.

Here is a high-level overview of the leading insurers we will be reviewing in this guide.

InsurerKey Strength2023 Life Claims PaidDefaqto 5-Star Policies (2024)Added Benefits
Legal & GeneralMarket Leader, Trusted Brand96.7%YesWellbeing Support
AvivaAll-Round Excellence99.4%YesAviva DigiCare+
Royal LondonMutual, Customer-Focused99.4%YesHelping Hand Service
VitalityWellness & Rewards Focus99.7%YesVitality Programme
AIG LifeFlexibility & High Cover99%YesSmart Health
ZurichGlobal Strength, Quality Cover98%YesZurich Support Service
LV=Friendly Society Ethos97%YesDoctor Services & Member Benefits

Note: Claims payout statistics are based on the latest available data, typically for the 2023 calendar year, as reported by the insurers.

Understanding the Different Types of Life Insurance

Before we dive into the specifics of each company, it's essential to understand the main types of life insurance available. The "best" policy for you depends entirely on what you want to protect.

1. Level Term Life Insurance

This is the most straightforward type of life insurance. You choose a lump sum amount (the 'sum assured') and a policy duration (the 'term'). If you pass away within the term, your beneficiaries receive the fixed lump sum. The payout amount remains the same throughout the policy.

  • Best for: Covering an interest-only mortgage, providing a financial legacy for your children, or replacing your income for a set period.

2. Decreasing Term Life Insurance

Also known as 'mortgage life insurance', this policy is designed to cover a repayment mortgage. The sum assured decreases over the term of the policy, broadly in line with your outstanding mortgage balance. Because the potential payout reduces over time, premiums are typically lower than for level term cover.

  • Best for: Specifically protecting a repayment mortgage so your family can clear the debt if you die.

3. Whole of Life Insurance

Unlike term insurance, a whole of life policy has no end date. It guarantees a payout whenever you die, as long as you continue to pay the premiums. This type of cover is more expensive but provides a definite lump sum for your beneficiaries.

  • Best for: Covering funeral costs, settling a potential Inheritance Tax (IHT) bill, or leaving a guaranteed inheritance.

4. Family Income Benefit

This is a variation of term insurance that doesn't pay a single lump sum. Instead, it provides a regular, tax-free income to your family from the time of your death until the end of the policy term. It's designed to replace the monthly income you would have provided.

  • Best for: Young families who would benefit from a regular income to cover ongoing living costs rather than managing a large lump sum.
FeatureLevel TermDecreasing TermWhole of LifeFamily Income Benefit
PayoutFixed Lump SumDecreasing Lump SumGuaranteed Lump SumRegular Income
TermFixed (e.g., 25 years)Fixed (e.g., 25 years)Your entire lifeFixed (e.g., 25 years)
Main PurposeGeneral protection, I/O mortgageRepayment mortgageIHT, funeral costsReplace monthly income
Relative CostMediumLowHighMedium

Top Life Insurance Companies in the UK: A Detailed Review

Let's explore what makes each of the UK's leading life insurers stand out. We'll look at their strengths, weaknesses, and the unique benefits they bring to the table.

As one of the UK's largest and oldest insurance providers, Legal & General is a household name synonymous with reliability. They are often a go-to for straightforward, comprehensive cover.

  • Overview: Founded in 1836, L&G is a FTSE 100 company with a colossal presence in the UK protection market. Their scale allows them to offer competitive pricing and a sense of security.
  • Key Policy Features: L&G's life insurance policies are robust. Terminal Illness Cover is included as standard on policies with a term of two years or more, paying out the full sum assured if you're diagnosed with a condition that gives you a life expectancy of 12 months or less. They also offer an optional waiver of premium, which covers your payments if you're unable to work due to illness or injury.
  • Claims Statistics: In 2023, L&G paid out over £798 million in life, critical illness, and income protection claims. For life insurance specifically, they paid 96.7% of claims, helping over 15,000 families.
  • Added Value Benefits: All L&G protection policyholders get access to Wellbeing Support. This service, provided by RedArc, offers practical advice and emotional support from a dedicated nurse on issues like mental health, serious illness, disability, and bereavement.
  • Ratings: Consistently awarded Defaqto's 5-Star rating for their protection products.
ProsCons
Highly trusted, financially strong brandAdded benefits are less extensive than some rivals
Often very competitive on priceCritical illness definitions, while good, may not be the widest
Simple and clear policy documentsCan be slower with complex underwriting cases
Excellent claims payout record

Aviva

Aviva is another giant of the UK insurance industry, known for its comprehensive product range and a recent focus on enhancing its digital and wellness offerings.

  • Overview: With a history stretching back over 300 years, Aviva is the UK's largest general insurer and a leading life and pensions provider. They provide cover for millions of customers.
  • Key Policy Features: Aviva's policies are highly flexible. They offer options for increasing cover at key life events (e.g., marriage, new child, mortgage increase) without further medical questions. Their critical illness cover is particularly strong, with an extensive list of conditions covered.
  • Claims Statistics: Aviva has an outstanding claims record. In 2023, they paid out on 99.4% of life insurance claims, totalling over £718 million. This demonstrates an exceptional commitment to their customers.
  • Added Value Benefits: This is where Aviva shines. Policyholders get access to Aviva DigiCare+. This app-based service includes a digital GP, a second medical opinion service, mental health consultations, and an annual health check. It provides tangible value from day one.
  • Ratings: Aviva's Life Insurance+ and Critical Illness+ plans consistently receive a 5-Star rating from Defaqto.
ProsCons
Superb claims payout rate (99.4%)Premiums may be slightly higher for basic cover
Excellent added benefits with Aviva DigiCare+Application process can be lengthy for some
Strong, comprehensive critical illness cover
Flexible policy options

Royal London

As the UK's largest mutual life, pensions, and investment company, Royal London is owned by its members, not shareholders. This structure influences its customer-centric approach.

  • Overview: Founded in 1861, Royal London's mutual status means profits are often reinvested into the business to improve products and services or returned to eligible members.
  • Key Policy Features: Royal London offers a wide range of customisable protection options. A key feature is their 'dual life' approach for joint policies, which effectively provides two single policies in one plan. This means if one partner dies, the policy pays out, and the surviving partner's cover continues.
  • Claims Statistics: Royal London has a stellar reputation for paying claims. In 2023, they paid 99.4% of all protection claims, totalling over £691 million. This consistency builds immense trust.
  • Added Value Benefits: Policyholders gain access to the Helping Hand service. This is a comprehensive support package that includes access to nurses for practical and emotional support, second medical opinions, and support for bereavement, carers, and children's health.
  • Ratings: Royal London's protection products are highly regarded and regularly achieve Defaqto 5-Star ratings.
ProsCons
Customer-first mutual ethosCan be more expensive for younger, healthy applicants
Excellent Helping Hand support serviceBrand is less well-known than Aviva or L&G
High and consistent claims payout rate
Innovative policy features like 'dual life'

Vitality

Vitality has disrupted the UK insurance market with a unique model that links protection with promoting a healthy lifestyle. Their approach is to reward you for being healthy.

  • Overview: Originally from South Africa, Vitality launched in the UK in 2007. Their core philosophy is "shared value" – what's good for your health is good for them as an insurer, and they share the benefits.
  • Key Policy Features: Vitality's policies are integrated with their Vitality Programme. By tracking your activity (e.g., steps, workouts) through a linked fitness tracker, you earn points. These points unlock rewards and can even reduce your future premiums.
  • Claims Statistics: Vitality boasts one of the highest payout rates in the industry. In 2023, they paid 99.7% of life insurance claims. They argue their wellness programme helps customers live healthier, longer lives.
  • Added Value Benefits: This is Vitality's entire brand. Rewards include free coffee, cinema tickets, discounts on Apple Watches, gym memberships, and healthy food. It's the most comprehensive wellness programme on the market.
  • Ratings: Vitality's feature-rich policies earn them Defaqto 5-Star ratings, though they are considered complex.
ProsCons
Unparalleled wellness and rewards programmePremiums can be high if you don't engage with the programme
Can be very cost-effective for active individualsThe model can feel complex and requires active participation
Extremely high claims payout rateNot ideal for those who just want simple, passive cover
Encourages positive lifestyle changes

AIG Life

AIG Life is the UK arm of the American International Group, a global insurance giant. They are known for their flexibility, innovation, and willingness to cover a broad range of circumstances.

  • Overview: AIG entered the UK protection market in 2015 by acquiring Ageas Protect. They have quickly become a major player, often praised by financial advisers for their modern approach.
  • Key Policy Features: AIG offers something called 'Best Doctors' as part of their package, which is now part of their wider Smart Health service. They are also known for their flexible underwriting and are often a good choice for people with more complex health histories or those seeking very high levels of cover. Their critical illness cover is among the most comprehensive available.
  • Claims Statistics: For 2023, AIG Life paid 99% of all life claims. This strong performance, combined with their customer focus during the claims process, makes them a reliable choice.
  • Added Value Benefits: All AIG policyholders get immediate access to Smart Health. This is a superb service providing 24/7 unlimited access to a UK-based virtual GP, a second medical opinion service, mental health support, a fitness programme, and nutrition advice. It is available to the policyholder, their partner, and children up to age 21.
  • Ratings: AIG's protection products are consistently rated 5-Stars by Defaqto.
ProsCons
Excellent and comprehensive Smart Health serviceNot always the cheapest for standard cases
Very flexible underwriting for complex casesBrand awareness is lower than some UK-based rivals
Wide-ranging critical illness definitions
Instant access to benefits upon policy start
Get Tailored Quote

Beyond Life Insurance: Protecting Your Health and Income

While life insurance protects your family after you're gone, other policies are crucial for protecting your finances during your lifetime. The best insurers offer these products, often as a combined package.

Critical Illness Cover (CIC)

This is the most common addition to a life insurance policy. Critical Illness Cover pays out a tax-free lump sum if you are diagnosed with one of a list of specific serious illnesses, such as cancer, heart attack, or stroke.

  • Why is it important? A serious illness can have a devastating financial impact. A CIC payout can be used to:
    • Cover lost income while you recover.
    • Pay for private medical treatment or home modifications.
    • Clear your mortgage or other debts, reducing financial stress.
  • What to look for: Don't just compare prices. The quality of a CIC policy is determined by the number of conditions it covers and, crucially, the clarity of its definitions. Insurers like Aviva and AIG are known for their extensive condition lists.

Income Protection (IP)

Often described by experts as the most important protection policy of all, Income Protection is designed to replace a portion of your monthly income (typically 50-70%) if you are unable to work due to any illness or injury.

  • Key Concepts:
    • Deferment Period: The time you wait from when you stop working until the policy starts paying out. Common options are 4, 8, 13, 26, or 52 weeks. The longer the deferment period, the lower the premium.
    • Payment Period: The policy will pay out until you can return to work, reach the end of the policy term (often your planned retirement age), or for a shorter limited period (e.g., 2 or 5 years), depending on the cover you choose.
  • Why is it vital? According to the ABI, one million workers are off work for an extended period each year due to sickness. State benefits are minimal (£116.75 per week for Statutory Sick Pay in 2024/25, followed by Employment and Support Allowance). Income Protection provides a substantial, reliable safety net.

Specialist Protection for Business Owners and Directors

If you run your own business, are self-employed, or are a company director, your protection needs are unique. Standard personal policies might not be the most efficient solution.

Key Person Insurance

What would happen to your business if a vital member of your team—perhaps a top salesperson, a technical genius, or you yourself—were to die or become critically ill? Key Person Insurance is a policy taken out and paid for by the business on the life of that individual. The payout goes directly to the business to help cover:

  • Lost profits during the disruption.
  • The cost of recruiting and training a replacement.
  • Repayment of business loans.

Relevant Life Insurance

This is a highly tax-efficient way for a limited company to provide death-in-service benefits for an employee or director.

  • The company pays the premiums, which are typically an allowable business expense.
  • It is not treated as a P11D benefit-in-kind for the employee, saving on National Insurance for both the employee and the employer.
  • The payout is made into a trust, ensuring it goes directly to the employee's family without forming part of their estate for Inheritance Tax purposes.

It's a fantastic alternative to a group life scheme for small businesses.

Executive Income Protection

Similar to Relevant Life Cover, this is an Income Protection policy paid for by a limited company for one of its employees or directors. The premiums are a tax-deductible business expense, and it isn't usually considered a benefit-in-kind. The benefit is paid to the company, which then distributes it to the employee via PAYE, providing them with a continuing income.

How is a Life Insurance Quote Calculated?

Insurers use a process called underwriting to assess the risk of insuring you and to calculate your premium. It's a bespoke calculation based on your individual circumstances.

The Main Factors Are:

  • Age: The younger you are when you take out a policy, the cheaper it will be.
  • Health: Insurers will ask about your medical history, your family's medical history, your height, and your weight. Any pre-existing conditions will be assessed.
  • Lifestyle:
    • Smoking/Vaping: This is the single biggest lifestyle factor. Smokers can expect to pay up to double the premium of a non-smoker.
    • Alcohol Consumption: Your weekly unit intake will be considered.
    • Hobbies: Dangerous hobbies like mountaineering or scuba diving may increase your premium.
  • Occupation: A desk job is considered lower risk than being a scaffolder or a deep-sea diver.
  • Amount of Cover: The higher the lump sum, the higher the premium.
  • Length of Term: A 40-year term will cost more than a 20-year term.
  • Type of Policy: Decreasing term is cheapest, followed by level term, with whole of life being the most expensive.

Example Monthly Premiums

To illustrate the impact of these factors, here are some sample quotes for a £250,000 level term policy over 25 years.

ProfileEstimated Monthly Premium
30-year-old, non-smoker, healthy£9 - £12
30-year-old, smoker, healthy£16 - £22
45-year-old, non-smoker, healthy£25 - £35
45-year-old, smoker, healthy£55 - £75

These are illustrative examples only. Your actual quote will depend on your specific circumstances and the insurer chosen.

The Importance of Added Value Benefits

In 2025, the best life insurance policies do more than just sit in a drawer waiting for a claim. They provide tangible, day-to-day value that can improve your health and wellbeing.

When you're comparing policies, these "living benefits" can be a major deciding factor:

  • Virtual GP Services: Services like Aviva DigiCare+, AIG Smart Health, and LV= Doctor Services give you and your family 24/7 access to a GP via phone or video call. This can save you weeks of waiting for an NHS appointment.
  • Second Medical Opinion: If you or a family member receive a serious diagnosis, services like Royal London's Helping Hand can arrange for a world-leading expert to review your case and either confirm the diagnosis and treatment plan or suggest alternatives.
  • Mental Health Support: Most top-tier policies now include access to a set number of counselling or therapy sessions, providing crucial support for issues like stress, anxiety, and depression.
  • Wellness Programmes: Vitality leads the pack here, but other insurers are catching on. These programmes reward you for healthy living, creating a positive feedback loop.

At WeCovr, we believe so strongly in this holistic approach that we provide all our protection customers with complimentary access to our own AI-powered calorie and nutrition tracking app, CalorieHero. We see it as our way of investing in your long-term health, going beyond the policy itself.

How to Choose the Best Life Insurance Policy for You

Navigating the market can seem daunting, but a structured approach makes it simple.

  1. Assess Your Needs: Why do you need cover? Calculate your mortgage, outstanding debts, and how much income your family would need to replace. A common rule of thumb is to seek cover of around 10 times your annual salary, but a personalised assessment is better.
  2. Decide on the Type of Cover: Based on your needs, choose between level term, decreasing term, family income benefit, or whole of life. Consider adding critical illness cover for a more comprehensive safety net.
  3. Determine the Amount and Term: How much cover do you need, and for how long? The term should typically last until your children are financially independent or your mortgage is paid off.
  4. Be Honest on Your Application: It is crucial to disclose all medical and lifestyle information accurately. Failing to do so can invalidate your policy, meaning the insurer could refuse to pay a claim. This is known as 'non-disclosure'.
  5. Compare the Market with an Expert: This is the most important step. A price comparison website will show you the cheapest premium, but it won't tell you if the policy is right for you. It won't explain the differences in critical illness definitions or the value of the added benefits.

Using an independent broker like WeCovr gives you the best of both worlds. We use our expertise and technology to compare policies from all the major insurers reviewed here, and more. We find the policy that offers the best value for your unique circumstances, not just the lowest price. We explain the pros and cons and help you with the application, ensuring it's done correctly.

  1. Review Your Cover Regularly: Life changes. Marriage, children, a new home, or a salary increase are all key moments to review your policy and ensure it still provides adequate protection.

Do I need a medical exam for life insurance?

For most people, a medical exam is not required. Insurers can usually make a decision based on the answers you provide on your application form. However, if you are older, applying for a very large amount of cover, or have a complex medical history, the insurer may request a GP report or a mini-screening with a nurse to confirm details like your blood pressure, cholesterol, and BMI.

Can I get life insurance with a pre-existing medical condition?

Yes, in many cases you can. It's one of the most common concerns we hear at WeCovr. For well-managed conditions like high blood pressure or type 2 diabetes, you can often get cover at standard rates or with a small premium increase. For more serious conditions, an insurer might increase the premium, place an 'exclusion' on the policy relating to that condition, or in some cases, decline cover. It is vital to speak with an adviser who can approach the insurers most likely to offer favourable terms for your specific condition.

Is a life insurance payout tax-free?

The lump sum from a life insurance policy is paid out free of capital gains and income tax. However, it could be subject to Inheritance Tax (IHT) if the value of your estate (including the life insurance payout) exceeds the IHT threshold (£325,000 in 2025). The simplest way to avoid this is to write your policy into a trust. This is a simple legal arrangement that makes the policy payout outside of your estate, meaning the money goes directly to your chosen beneficiaries quickly and without any IHT liability. We can help you with this process, and for most policies, it's free to set up.

What is terminal illness cover?

Terminal illness cover is a standard feature included in almost all term life insurance policies. It allows the policy to pay out early if you are diagnosed with an illness and have a life expectancy of 12 months or less. This provides you and your family with vital funds to get your financial affairs in order, pay for care, or simply enjoy your remaining time together without financial worry. It is not the same as Critical Illness Cover, which pays out on diagnosis of a specific condition, regardless of life expectancy.

How does WeCovr help me find the best policy?

We act as your expert guide in the complex world of insurance. First, we take the time to understand your personal situation, budget, and what you want to protect. Then, we use our in-depth knowledge and access to the entire UK market to compare policies from all the leading insurers, including those mentioned in this guide. We don't just look at price; we analyse the policy features, claims history, and added benefits to find the best overall value for you. We handle the paperwork, help you place the policy in trust, and provide ongoing support. Our service is completely free to you, as we are paid a commission by the insurer you choose.

Our Final Word

Choosing the right life insurance company in 2025 is about finding a partner for your family's financial security. The "best" insurer is not a one-size-fits-all answer; it's the one that aligns with your specific needs, health profile, and budget.

While market leaders like Legal & General and Aviva offer fantastic all-round products, specialists like Vitality reward a healthy lifestyle, and providers like AIG offer great flexibility. The key is to look beyond the premium and consider the complete package: the strength of the cover, the reliability of claims payments, and the value of the 'living benefits' that can support your wellbeing today.

Financial protection is the foundation of a solid financial plan. It provides peace of mind, knowing that whatever happens, the people you care about most will be looked after. The next step is a personal one. We encourage you to speak with an independent adviser to get tailored advice and a quote that reflects your life, your family, and your 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!

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 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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How It Works

1. Complete a brief form
Complete a brief form
2. Our experts analyse your information and find you best quotes
Experts discuss your quotes
3. Enjoy your protection!
Enjoy your protection

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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Who Are WeCovr?

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!

Important Information

Since 2011, WeCovr has helped thousands of individuals, families, and businesses protect what matters most. We make it easy to get quotes for life insurance, critical illness cover, private medical insurance, and a wide range of other insurance types. We also provide embedded insurance solutions tailored for business partners and platforms.

Political And Credit Risks Ltd is a registered company in England and Wales. Company Number: 07691072. Data Protection Register Number: ZA207579. Registered Office: 22-45 Old Castle Street, London, E1 7NY. WeCovr is a trading style of Political And Credit Risks Ltd. Political And Credit Risks Ltd is Authorised and Regulated by the Financial Conduct Authority and is on the Financial Services Register under number 735613.

About WeCovr

WeCovr is your trusted partner for comprehensive insurance solutions. We help families and individuals find the right protection for their needs.