8th October 2020

Insurance – providing protection against a possible eventuality!

In practice this means protecting yourself and your family against disaster by taking out insurance.

There are three types of personal insurances:

1) Premature Death Cover: Life Insurance

Life insurance is a type of policy that protects your loved ones financially if you die. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured’s death. It can help minimise the financial impact that your death could have on your family, and offer peace of mind to those you care about most.

As a minimum, everyone should have enough life cover to pay off any debt if they were to die.

2) Critical Illness Cover

Critical Illness Cover is an insurance policy that helps protect you if you become critically ill during the policy term. It pays out a tax-free lump sum that you can use however you like – whether that’s to help cover health-related costs, monthly expenses, or lost income while you get better.

Think of the impact of a serious illness on your financial security.

3) Inability to work (due to illness or injury) Cover: Income Protection

Income Protection Insurance helps support you financially if you have time off work and suffer a loss of earnings because of injury or illness. This type of insurance covers most illnesses that leave you unable to work.

Making sure you have the right type and amount of cover is something a professional financial adviser can help you with, and there is also plenty of guidance on the Money Advice Service website.