Choosing the right insurance

The impulse to protect our loved ones is one of the most basic instincts a person can have. Yet the fact remains that many people don’t take out sufficient insurance to protect themselves and their family should something happen to prevent them from being able to work. And if the main breadwinner in a household suddenly becomes unable to earn a wage, it can very quickly lead to serious financial hardship.

Life Insurance

So how do you protect yourself against the financial risks associated with disability, accident or death? Life Insurance is the most common form of protection, but most policies don’t provide cover for accidents or sickness.

How much life insurance you need will depend on your circumstances. If you want use the cover to provide your family with money in place of your income should you die, you would simply need to calculate what your current expenses are. Calculating the amount needed if you want to use the insurance to cover a debt is even easier, as it depends on the amount of debt owed.

Critical Illness Cover

Critical illness cover helps protect you if you are diagnosed with a specified critical illness such as heart attack, stroke, cancer and many others. It pays out a tax-free lump sum that you can use in whichever way you like. Whether that’s to help cover health-related costs, monthly expenses, or lost income while you get better.

This type of cover often comes with additional benefits which encourage you to take more control of your health and well-being. These benefits may include:

  • access to annual health checks
  • discounted gym memberships
  • advice on topics like nutrition and mental health.

Income Protection

Similarly, income protection insurance is, in many respects, the most important insurance of all, and can provide for your bills and day-to-day living expenses in the longer-term should the unexpected happen, whether that’s an accident, critical illness or other traumatic event. It gives you the reassurance that you will not be without financial support and when returning to work, you are often given a payment to help cover initial costs.

Choosing the right kind of protection is critical, but it’s also it’s also important to get the right level of cover, because people’s requirements change as they get married, have children, move jobs or have their terms of employment changed.

Whilst you may have had sufficient protection last year, if your personal circumstances have altered, you may need to review your cover to ensure you have optimal protection. And like most kinds of insurance, if you want to make sure you get the protection that’s right for you, then contact one of our consultants who will guide you in the right direction.