Life Insurance (Term) vs Income Protection
A plain-English comparison of two GeraSure policy lines — what each covers, what it excludes, typical annual premium, and how to choose.
Quick Answer
Life Insurance (Term) typically costs £80–£600/yr and Income Protection typically costs £200–£1500/yr. Life Insurance (Term) has the lower entry premium, but the right choice depends on what you need to protect — read the coverage below.
Life Insurance (Term)
Term life insurance pays a lump sum if the policyholder dies within the specified term. Provides financial protection for dependants — mortgage repayment, income replacement, or family security.
- Avg annual premium
- £80–£600/yr
- Type
- personal
- Available in
- 3 markets
Income Protection
Pays a regular monthly income if you are unable to work due to illness or injury. Covers up to 60–70% of your gross income until you recover, retire, or the policy term ends.
- Avg annual premium
- £200–£1500/yr
- Type
- personal
- Available in
- 2 markets
What each policy covers
Life Insurance (Term) covers
- ✓ Lump sum death benefit
- ✓ Terminal illness benefit (typically included)
- ✓ Option: decreasing term (mortgage protection)
- ✓ Option: level term (income protection)
Key exclusions
- ✕ Suicide within first 12–24 months (check policy)
- ✕ Pre-existing undisclosed medical conditions
- ✕ Deaths related to illegal activities
Income Protection covers
- ✓ Monthly income payment (up to 60–70% of gross earnings)
- ✓ Covers any illness or injury preventing work
- ✓ Short or long-term payment periods
- ✓ Own occupation or any occupation definition
Key exclusions
- ✕ Pre-existing conditions (moratorium basis)
- ✕ Unemployment (redundancy) — not covered
- ✕ Self-inflicted injury
Where each is available
Life Insurance (Term) is also offered in Armenia where Income Protection is not.
Frequently asked questions
Is life insurance (term) more expensive than income protection?
Based on GeraSure's average annual premium ranges, life insurance (term) typically costs £80–£600/yr and income protection typically costs £200–£1500/yr. Life Insurance (Term) usually has the lower starting premium. Your actual quote depends on your risk profile, location and cover level.
How much life insurance do I need?
A common rule of thumb is 10x your annual income for income replacement. For mortgage protection, match your outstanding mortgage balance. Use GeraSure's life insurance calculator for a personalised recommendation.
What is the deferred period on income protection?
The deferred period is the waiting time between your inability to work and the first payment. Shorter periods (4 weeks) cost more. Choose a deferred period that aligns with how long your employer sick pay or savings would last.
GeraSure is a comparison and referral service. Insurance products are provided by FCA-authorised or equivalent regulated insurers in each jurisdiction. GeraSure does not underwrite insurance policies and does not provide financial advice. Always read the policy wording before purchasing.