Life & Critical Illness Cover
Protect your family's future with comprehensive life and critical illness insurance. Combined with income protection, you can create a complete protection strategy for every scenario. We'll help you find the right level of cover at a price that fits your budget.
As with all insurance policies, conditions and exclusions will apply.
Content reviewed: 13 January 2026
How much life insurance do I need in the UK?
Most experts recommend life insurance cover of 10-20 times your annual salary, plus enough to pay off your mortgage and debts. For families with young children, consider covering income until children reach age 21-25. A healthy 30-year-old non-smoker might pay £10-15/month for £200,000 cover over 25 years.
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How much life insurance do I need in the UK?
Most experts recommend life insurance cover of 10-20 times your annual salary, plus enough to pay off your mortgage and any other debts. For a family with young children, consider covering income until children are financially independent (typically age 21-25). A healthy 30-year-old non-smoker might pay £10-15/month for £200,000 cover over 25 years.
Key Facts: Life Insurance
- •Cover 10-20x annual salary plus mortgage debt for full protection
- •Healthy 30-year-old non-smoker pays ~£10-15/month for £200k cover
- •Write policy in trust (free) to avoid inheritance tax on payout
- •Pre-existing conditions usually covered—premiums may be higher
- •Combined with critical illness for comprehensive protection
Types of Cover Available
Why You Need Protection
Ensures your family can maintain their lifestyle
Covers mortgage payments and living costs
Provides financial security during difficult times
Can help pay for medical treatment and care
Peace of mind knowing your loved ones are protected
Affordable monthly premiums tailored to your budget
How Much Life Insurance Do You Need?
Use our calculator to estimate the right level of cover for your circumstances. Simply enter your financial obligations below.
Remember: This calculator provides an estimate only. The right amount of life insurance varies depending on your personal circumstances. Speak to our expert advisers for personalised guidance on the life insurance policies available to you, completely free of charge.
Helpful Guides
Everything you need to know about life and critical illness insurance
Consider: Outstanding mortgage, children's education costs, funeral expenses, and income replacement for your family.
Term policies are more affordable and ideal for covering mortgages or family protection during working years.
Each policy varies, so it's important to check the specific conditions and definitions with your provider.
Guaranteed premiums won't increase during the policy term, while reviewable premiums can change based on insurer's claims experience.
It's free to do and means your family can access funds quickly when they need them most.
We'll help you navigate health questions and find insurers who offer the best terms for your circumstances.
Understanding Life Insurance: Expert Tips
Practical guidance to help you make informed decisions about protecting your family
Consider These Factors:
- •Outstanding mortgage balance (ensure it's fully covered)
- •Annual income × 10-12 (to replace lost earnings)
- •Children's future education costs (university fees)
- •Outstanding debts, loans, and credit cards
- •Funeral expenses (typically £4,000-£5,000)
- •Emergency fund for immediate family needs
Example: £250,000 mortgage + (£40,000 income × 10) + £50,000 education costs = £700,000 total cover needed. Review annually as circumstances change.
Young Adults (20s-30s):
Lower cover needed, cheapest premiums. Focus on covering debts and funeral costs. Lock in low rates early.
New Parents:
Significantly increase cover. Add critical illness protection. Consider separate children's policies for education costs.
Mid-Career (40s-50s):
Peak protection needs. Ensure mortgage and income replacement fully covered. Review annually as mortgage decreases.
Pre-Retirement (55+):
Reduce cover as mortgage clears and children become independent. Consider whole of life for inheritance planning.
Key Tax Advantages:
- •Payouts are free from income tax and capital gains tax
- •However, may be subject to 40% inheritance tax if part of your estate
- •Writing in trust removes the payout from your estate (avoiding IHT)
- •Premiums paid from after-tax income (no tax relief available)
The Problem: Most Policies Are NOT In Trust
If your policy is not written in trust, the payout becomes part of your estate. This means:
- •40% inheritance tax may be payable on the full payout
- •Probate delays - funds locked until estate is settled (months, sometimes years)
- •Family gets less when they need it most
- •Potential disputes if there's a contested will
- •Example: £200,000 payout could lose £80,000 to inheritance tax
Why Use a Trust? (Recommended)
Writing your policy in trust is free, simple, and takes 5 minutes. It means:
- •Payout goes directly to beneficiaries (bypasses your estate)
- •No inheritance tax on the payout (regardless of estate size)
- •Funds available within days (avoids probate delays)
- •You control who receives the money
- •Protects your family when they need support urgently
Action Required:
If you don't have an existing policy in trust, ask your adviser to set this up immediately. If you already have a policy, check your paperwork or contact your insurer to confirm it's written in trust.
1 in 2 people will be diagnosed with cancer in their lifetime.* Critical illness pays out a tax-free lump sum if you're diagnosed with a covered serious condition.
*Source: Protection Guru / CI Expert
Commonly Covered Conditions:
- •Cancer (most types and stages)
- •Heart attack and coronary artery surgery
- •Stroke with permanent symptoms
- •Kidney failure requiring dialysis
- •Major organ transplant
- •Multiple sclerosis, Parkinson's disease
- •Total permanent disability
Use the payout to: Cover mortgage payments while unable to work, pay for private treatment, adapt your home, maintain your family's lifestyle, or simply reduce financial stress during treatment.
Joint vs Single Policies:
- •Joint Life First Death: Cheaper, pays out once (when first person dies). Good for mortgage protection.
- •Separate Policies: More expensive, but both partners get full protection. Recommended for comprehensive family cover.
Don't Forget Non-Working Partners:
Stay-at-home parents provide invaluable childcare, housework, and family management. Consider the cost of replacing these services (childcare alone averages £15,000+ annually).
Children's Cover:
Some policies include free children's critical illness cover (typically £25,000-£50,000). Worth having for peace of mind, though thankfully rarely claimed.
Myth: "I'm too young to need life insurance"
Truth: Younger = cheaper premiums locked in for life. Also covers unexpected debts and funeral costs.
Myth: "My employer's cover is enough"
Truth: Employer schemes typically offer 3-4× salary. You lose it if you change jobs. Personal cover stays with you.
Myth: "It's too expensive"
Truth: £200,000 cover for 25 years costs around £10-15/month for a healthy 30-year-old. Less than a gym membership.
Myth: "Insurers will find a way not to pay"
Truth: 98% of claims are paid in full.* Declined claims are usually due to non-disclosure of medical history at application.
*Source: Protection Guru / CI Expert
Myth: "I can't get cover with health issues"
Truth: Most conditions can be covered, often at standard rates. We'll find insurers who specialise in your situation.
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Life Insurance Guides
Comprehensive guides covering life insurance, provider comparisons, and real-world advice from our specialists.
Real Consequences
If You Didn't Come Home...
These illustrative scenarios show why protection matters. Based on real situations families face every day.
He Assumed She'd Cope
David died suddenly at 44.
No illness. No warning.
Just didn't wake up.
What was lost:
- •Half the household income — gone
- •Financial security — gone
- •Choices — gone
"She'll manage if anything happens."
Life cover isn't for you. It's for the person who has to live without you.
The Kids Didn't Know Dad Was 'Worth' £0
Paul had two children under 10.
He thought life insurance was "for later."
Later never came.
What was lost:
- •Mum had to downsize
- •School choices disappeared
- •Holidays became memories, not plans
Love without planning leaves consequences.
The House Had to Go
Emma loved her home.
Her husband didn't have life cover.
After he passed, the numbers didn't work.
What was lost:
- •Mortgage payments continued
- •Council tax. Utilities. Bills.
- •The house went on the market within months.
Life cover keeps roofs over heads — literally.
He Thought Death Was the Worst Part
Chris died.
His partner survived — and paid the price.
What was lost:
- •Work more hours
- •Parent alone
- •Grieve quietly
- •Make impossible financial decisions
Death ended his pain. It started hers.
The Conversation They Never Had
No plan. No will. No cover.
Just unanswered questions.
What was lost:
- •What would he have wanted?
- •How long can I manage?
- •What happens next?
Silence is expensive. Planning is a final act of care.
"Protection isn't about expecting the worst."
"It's about refusing to leave chaos behind."
Whether it's life insurance, critical illness, or income protection — let's make sure your family never has to fundraise, move house, or struggle because of timing.
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