Life Assurance: Protecting the People Who Depend on You

Life assurance pays a lump sum to your loved ones if you die during the term of the policy, in exchange for a monthly premium. It exists to answer one question: if your income stopped tomorrow, could the people who depend on you keep their home and their standard of living? As responsibilities grow, a mortgage, a partner, children, the case for cover grows with them.

SIP Wealth Management provides independent life assurance advice from our offices in Swansea and Mumbles, comparing cover and premiums from across the market rather than a single insurer.

The main types of life cover

Level term assurance: pays a fixed sum if you die within the chosen term. Simple, and typically the cheapest way to buy substantial cover.
Decreasing term assurance: the payout reduces over time, usually tracking a repayment mortgage. Often the most cost-effective mortgage protection.
Increasing term assurance: cover rises over time, typically with inflation, protecting the real value of the payout.
Whole of life assurance: no fixed term; pays out whenever you die. Frequently used in inheritance tax planning.
Critical illness cover: pays a lump sum on diagnosis of specified serious illnesses. It can be added to life cover or bought separately, and works alongside income protection, which replaces income rather than paying a lump sum.

How much life insurance do you need?

A round number is not a plan. We calculate cover from what your family would actually need: clearing the mortgage and other debts, replacing your income for the years your dependants rely on it, and allowing for costs like childcare or education. We then subtract what you already have, such as death-in-service benefits through work and existing savings. The result is a defensible figure, and often a cheaper premium than the guessed-at alternative.

Why writing your policy in trust matters

A life policy written in trust pays out directly to your chosen beneficiaries rather than into your estate. That usually means the money arrives in weeks rather than waiting for probate, and it can keep the payout outside your estate for inheritance tax. With unused pensions also coming into inheritance tax from April 2027, keeping life cover outside the estate is becoming more valuable, not less.

Putting a policy in trust normally costs nothing. It is one of the most valuable pieces of housekeeping in financial planning, and one of the most commonly missed. We arrange it as standard where appropriate.

Already have a policy? Review before you cancel

Older policies are sometimes poor value, but sometimes carry terms you could not buy today, and a new policy will be priced on your current age and health. Never cancel existing cover before taking advice; we review what you have as part of every protection conversation.

Get a personal protection review

Tell us who depends on you and what you owe, and we will tell you what cover you need, what it costs, and what you can safely skip. Your first meeting is free and without obligation.

Policies have exclusions and conditions; cover levels and premiums depend on individual circumstances. Tax treatment depends on individual circumstances and may change.

Frequently Asked Questions

How much life insurance do I need?admin2026-08-20T09:26:36+01:00

How much life insurance do I need?

A common starting point is enough to clear your mortgage and debts plus a multiple of the income your family would lose, minus cover you already have such as death-in-service benefits. The right figure depends on your dependants, their ages and your existing savings, so we calculate it properly rather than guessing.

What is the difference between life assurance and life insurance?admin2026-08-20T09:27:14+01:00

What is the difference between life assurance and life insurance?

Traditionally, assurance covered an event certain to happen (death, under a whole of life policy) while insurance covered an event that might happen (death within a set term). Today the terms are used interchangeably; what matters is choosing the right type of policy for your needs.

Should my life insurance be written in trust?admin2026-08-20T09:27:39+01:00

Should my life insurance be written in trust?

Usually, yes. A policy in trust pays your beneficiaries directly, typically faster than probate, and the payout normally sits outside your estate for inheritance tax. It usually costs nothing to set up, and we include it in our advice as standard where appropriate.

Do I need life insurance if I have death-in-service cover through work?admin2026-08-20T09:28:02+01:00

Do I need life insurance if I have death-in-service cover through work?

Often, yes. Death-in-service typically pays around four times salary, which may fall short of clearing a mortgage and supporting a family, and the cover ends when you leave the job. We treat it as part of your cover, not the whole answer.

Is life insurance more expensive as I get older?admin2026-08-20T09:28:32+01:00

Is life insurance more expensive as I get older?

Yes. Premiums are based on your age, health and lifestyle when you apply, which is why cover is cheapest to arrange early. Existing policies keep their original premium basis, which is another reason not to cancel old cover without advice.

What is the difference between critical illness cover and income protection?admin2026-08-20T09:28:55+01:00

What is the difference between critical illness cover and income protection?

Critical illness cover pays a one-off lump sum if you are diagnosed with a specified serious condition. Income protection pays a regular, tax-free income for any illness or injury that stops you working, for as long as needed within the policy term. They solve different problems, and many families benefit from both.

Last reviewed: August 2026

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Life Assurance: Protecting the People Who Depend on You