Why protection insurance matters

Most people insure their car, their home and their phone without a second thought. Yet the one asset that generates all of that — your income — often goes entirely unprotected. Protection insurance exists to ensure that a serious illness, an injury or a death does not leave your family unable to pay the mortgage or meet everyday living costs.

1 in 4

People will suffer a critical illness or serious injury during their working life

£0

Statutory sick pay after 28 weeks — most employees receive just £116.75 per week

65%

Of mortgage holders have no life cover — meaning their mortgage could not be repaid if they died

The question isn't whether you can afford protection insurance. It's whether you can afford to be without it. A comprehensive protection review often reveals that the right cover costs far less than people expect — and the peace of mind it provides is genuinely invaluable.

The adviser difference

Buying protection through a comparison website gives you price. Buying through an adviser gives you the right product, the right amount of cover, and — crucially — the right policy wording. Many claims are rejected not because the person wasn't ill, but because they bought the wrong type of cover. An adviser ensures you're properly protected.

Protection products at a glance

We advise on the full range of personal and business protection products. Click any card to jump to the detailed section.

Life cover

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Life Insurance

Core Protection

Life insurance pays a tax-free lump sum to your beneficiaries if you die during the policy term. It is the most fundamental form of personal protection and is particularly important if others depend on your income — whether that's a partner, children, or a mortgage co-owner.

Pays out
On death
Benefit type
Tax-free lump sum
Term
Fixed or whole of life

Level term vs decreasing term

Level term life insurance pays a fixed lump sum regardless of when during the policy term the claim is made. It is suitable for covering fixed liabilities, income replacement or leaving a legacy to family.

Decreasing term life insurance (also called mortgage protection life insurance) reduces the payout amount over time in line with a repayment mortgage balance. It is cheaper than level term and specifically designed to clear a mortgage on death.

Whole of life insurance

Unlike term insurance, whole of life insurance has no end date — it pays out on death whenever that occurs. It is more expensive but valuable for inheritance tax planning, as the policy can be written in trust to ensure the payout falls outside the estate.

Write your policy in trust

Any life insurance policy can be placed in a discretionary trust at no extra cost, ensuring the benefit is paid directly to your chosen beneficiaries without going through probate and without forming part of your estate for inheritance tax purposes. This is one of the most overlooked — and most valuable — actions in protection planning.

Policy TypeBest ForCostPayout
Level termIncome replacement, legacy planningModerateFixed lump sum
Decreasing termRepayment mortgage coverLowestReduces over time
Whole of lifeIHT planning, guaranteed payoutHighestFixed — paid whenever death occurs
Joint lifeCouples — covers first deathModerateSingle payout on first death

Critical illness cover

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Critical Illness Insurance

Illness Diagnosis

Critical illness cover pays a tax-free lump sum if you are diagnosed with one of a specified list of serious conditions — typically including cancer, heart attack, stroke, multiple sclerosis and many others. Crucially, it pays while you are still alive, making it distinct from life insurance.

Pays out
On diagnosis
Benefit type
Tax-free lump sum
Typical conditions
40 – 100+

The number of conditions covered varies significantly between providers — from around 40 to over 100. However, quantity of conditions is less important than the quality of definitions. A policy that covers 40 conditions with broad, clear definitions may be more valuable than one covering 100 with highly restrictive wording.

Why definitions matter

A common example: many cheap critical illness policies define a "heart attack" as requiring permanent damage evidenced by specific enzyme levels. More comprehensive policies cover a wider range of cardiac events. When comparing quotes, your adviser will review the policy definitions — not just the price — to ensure you are genuinely covered.

Critical illness vs income protection

These two products are often confused but serve different purposes. Critical illness pays a one-off lump sum on diagnosis of specific conditions. Income protection pays a regular monthly income if you cannot work — for any condition, not just those on a specified list. Many clients benefit from having both.

Income protection

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Income Protection Insurance

Most Comprehensive

Income protection is widely considered the most important — and most underused — form of personal protection. It replaces a proportion of your income (typically 50–70%) if you cannot work due to any illness or injury, for as long as you remain unable to work up to retirement age.

Pays out
Any illness or injury
Benefit type
Monthly income
Maximum cover
50 – 70% of income

Key features to understand

Deferred period — the waiting period between being unable to work and the policy beginning to pay. Common options are 4, 8, 13, 26 or 52 weeks. The longer the deferral, the lower the premium. If your employer pays sick pay for 3 months, a 13-week deferral makes sense.

Own occupation definition — the gold standard definition. The policy pays if you cannot perform your own specific job. Cheaper "any occupation" policies only pay if you are unable to do any work at all — a much higher bar that is harder to meet.

Guaranteed vs reviewable premiums — guaranteed premiums are fixed for the policy term. Reviewable premiums may be cheaper initially but can increase significantly on review. Guaranteed premiums provide certainty.

Self-employed? Income protection is essential

Employees receive at least statutory sick pay. Self-employed individuals have no such safety net — if you cannot work, your income stops immediately. Income protection is arguably even more critical for the self-employed, and the benefit is based on your pre-disability earnings so it reflects your actual financial exposure.

Not sure what level of cover you need?

Our needs finder below will point you in the right direction — or book a free call and we'll work through it together.

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Family income benefit

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Family Income Benefit

Often Overlooked

Family income benefit (FIB) is a form of life insurance that, instead of paying a lump sum on death, pays a regular tax-free monthly income to your family for the remainder of the policy term. It is often cheaper than equivalent level term cover and far more practical for families who need to replace a regular income rather than manage a large lump sum.

Pays out
On death
Benefit type
Monthly income
Term
To chosen age

For example, a parent earning £3,000 per month might take out a family income benefit policy to pay £3,000 per month to age 65 if they die. This ensures the family's lifestyle is maintained without the responsibility of investing a large lump sum wisely.

FIB can also be arranged on a joint life basis, paying on the first death. It can be written in trust and combined with level term or decreasing term cover for a comprehensive protection package at a competitive premium.

Mortgage payment protection insurance

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Mortgage Payment Protection

Mortgage-Linked

Mortgage payment protection insurance (MPPI) covers your mortgage repayments if you are unable to work due to accident, sickness or involuntary unemployment. Unlike income protection, it is specifically designed to cover the mortgage rather than a broader proportion of income.

Covers
Mortgage payments
Triggers
Illness, injury, redundancy
Typical term
12 – 24 months max

MPPI is typically cheaper than income protection because the benefit is capped at the mortgage payment and the maximum claim period is usually 12 or 24 months. For clients who primarily want to ensure their home is protected and have other means to cover living costs, MPPI can be a cost-effective solution. However, for most clients, a properly structured income protection policy provides broader and more durable cover.

Business protection

If you own a business — whether as a sole trader, in a partnership, or through a limited company — the financial consequences of losing yourself or a key colleague to serious illness or death can be devastating. Business protection exists to ensure the business survives and that the right people retain or acquire ownership.

Key People

🔑 Key Person Insurance

Covers the financial impact on the business of losing a key individual — a director, founder or essential employee — to death or critical illness. The business is the policyholder and receives the payout to cover lost profits, recruitment costs or loan repayments.

Ownership

🤝 Shareholder / Partnership Protection

Ensures that if a business owner dies or becomes critically ill, their surviving co-owners have the funds to purchase their share — preventing the business from passing to uninvolved family members or forcing a distressed sale. Structured via a cross-option agreement alongside life or critical illness policies.

Tax Efficient

📋 Relevant Life Insurance

A tax-efficient alternative to a personal life insurance policy for company directors and employees. Premiums are paid by the company as a business expense — saving corporation tax and National Insurance. The benefit is paid free of inheritance tax via a discretionary trust. Can provide significantly more life cover for the same net cost compared to a personal policy.

Tax Efficient

💼 Executive Income Protection

An income protection policy arranged by the company for the benefit of a director or key employee. Premiums are typically tax-deductible for the company. The benefit is paid to the employer who continues to pay the employee's salary — or directly to the individual depending on the structure. Particularly valuable for directors who pay themselves a combination of salary and dividends.

Director protection — a common oversight

Many company directors arrange personal protection without considering the far more tax-efficient structures available through their company. A relevant life policy, for example, can provide three to four times more death-in-service benefit for the same net cost after tax. Business protection is a specialist area and one where professional advice genuinely pays for itself many times over.

Is my business protected? A quick checklist

QuestionIf No — Consider
If a key person died tomorrow, could the business survive the financial impact?Key person insurance
Do all business owners have an agreement in place covering what happens to their share on death?Shareholder / partnership protection
Are directors and key employees covered by death in service through the company?Relevant life insurance via company
Would a director's income be protected if they were unable to work for 6+ months?Executive income protection
Does the business have any loans that would become immediately repayable on a director's death?Loan protection / key person insurance

Find my protection cover

Select all the statements that apply to your situation and we'll suggest which types of protection are most relevant.

Based on your answers, we'd suggest considering:

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    Frequently asked questions

    Life insurance is not a legal requirement, but it is strongly advisable. If you die without cover, your mortgage remains outstanding and must be repaid from your estate. If you own jointly, your co-owner becomes solely responsible for the full debt. Life insurance ensures the mortgage is cleared, allowing your family to remain in their home.
    A common starting point is to cover your outstanding mortgage balance plus a multiple of your annual income to replace earnings for your dependants. For example, a mortgage of £250,000 plus five times a salary of £40,000 would suggest £450,000 of cover. However, the right amount depends on your specific commitments, dependants, existing savings and other assets — which is why a personalised review is valuable.
    It may. Insurers assess your health at the point of application, and a history of certain conditions may result in a higher premium (called a loading), exclusion of specific conditions, or in rare cases a decline to offer cover. However, the impact varies considerably between insurers — one insurer may load a premium that another would offer at standard rates. An adviser who has access to the whole market can identify the most favourable underwriting approach for your specific health history.
    They serve different purposes. Critical illness cover pays a one-off lump sum on diagnosis of a specific listed condition — useful for clearing a mortgage or paying for adaptations and treatment. Income protection pays a regular monthly income if you cannot work due to any illness or injury — it replaces your earnings on an ongoing basis. Many clients benefit from having both, as they complement rather than duplicate each other.
    Relevant life insurance is a life policy arranged by a company for the benefit of a director or employee. The key advantages are: premiums are paid by the company as a business expense (saving corporation tax), they are not treated as a P11D benefit in kind, and the payout is made via a discretionary trust free of inheritance tax. For a higher-rate taxpaying director, a relevant life policy can provide considerably more death-in-service cover for the same net cost compared to a personal policy funded from post-tax income.
    Yes, though smokers typically pay higher premiums than non-smokers to reflect the elevated health risk. Most insurers classify you as a non-smoker once you have not smoked for 12 months — including e-cigarettes and nicotine replacement products in some cases. If you have recently stopped smoking, it may be worth waiting until you meet a non-smoker definition before applying, as the premium saving can be significant. Your adviser can guide you on the right timing.

    Get your free protection review

    Protection is one of those things that's easy to put off — until it's too late. A free, no-obligation review takes around 20–30 minutes and will give you a clear picture of what cover you have, what gaps exist, and what the right solution looks like for your circumstances.

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