Insights

In 2023, protection insurers paid a record £7.34bn in claims, including £1.2bn for critical illness. Income protection claims rose, with mental health issues representing the highest total claim value. Claims acceptance remains high at 98.3%, highlighting the importance of coverage. 

Although life insurance probably isn’t at the top of many people’s ‘to do’ list, it’s arguably one of the most important financial products anyone can take out, and one of the best ways of protecting your loved ones financially. This guide explains the different types of cover, how much cover you might need and lists the top tips about life insurance.

Having a financial plan should go hand-in-hand with a conversation about insurance. Only 29% of UK adults have life insurance, and even fewer have critical illness or income protection, highlighting that a concerning number of Brits risk leaving themselves and their loved ones vulnerable during life’s toughest moments. Consider writing your life insurance policy into trust; under current rules the payout will not be subject to Inheritance Tax, plus your beneficiaries should receive the money swiftly as it will not have to go through probate.