What insurance cover do you need?
No matter what your circumstances, you need to be sure that you have made arrangements to take care of yourself, and your family, if you are faced with unexpected events, such as illness, disability, redundancy or death.
Use our table as a guide to help you understand the different life insurance and protection products on offer, so you can see if they provide the cover you need. And remember restrictions may apply - so always ask an insurer if you are eligible for cover first.
| Insurance | Level of cover/main benefits | Exclusions/restrictions | Tax relief on premium |
|---|---|---|---|
| Serious/ Critical Illness Insurance | Pays out a tax-free lump sum if you are medically diagnosed with one of the serious illnesses or disabilities that your policy covers. | Eligible illnesses and exclusions will be listed in your individual policy and will vary between providers. Your age, gender, health and family medical history will affect your eligibility and the cost. | None |
| Income Protection/ Permanent Health Insurance | Provides you with a taxable income if you lose your work income due to disability/illness or injury. The benefit is paid out for a certain period of time – usually until you get better or reach retirement age. | You must be in full-time paid work or be self-employed to get and continue to have income protection cover. | Yes |
| Life Insurance | Pays your estate either a lump sum or regular income if you die during the time limit set out in the policy. The cover is either whole of life or for a specific term. | Your age, gender, health and family medical history will affect your eligibility and the cost. | None |
| Mortgage Protection Insurance | A type of life insurance policy that repays your mortgage if you die before clearing the loan. The cover lasts until you repay your mortgage. | Your age, gender, health and family medical history will affect your eligibility and the cost. | None |
| Mortgage Repayment Protection Insurance | Repays your mortgage for a certain period of time if you're unable to work due to an accident, sickness, hospitalisation, compulsory redundancy or serious illness covered by the policy. The benefit lasts for a specified time, usually 12 months. | Varies by policy but you may not qualify if you are self-employed, temporary/contract worker or know yourself to be at risk of being made redundant when taking out cover | None |
| Payment Protection Insurance | Covers your repayments on a loan for a certain period of time if you suffer from an accident, illness, death or compulsory redundancy, depending on the policy. Many policies generally cover a maximum of one year's repayments. | Varies by policy but you will not qualify if you suffer from an illness that is not covered under your policy, or know yourself to be at risk of being made redundant when taking out cover. | None |
| Private Health Insurance | Covers certain private and semi-private medical treatments, depending on the level of cover you choose. Cover is ongoing once policies are renewed on time. | Usually pre-existing illnesses. | Yes |
| Travel insurance | Can cover against losses while you are travelling. | Many travel insurance policies do not cover pre-existing health conditions (suffered by you or immediate relatives) unless you tell the insurer in advance and they accept that risk. You may not be able to claim for cancelled trips unless the reasons match those set out in the policy. | None |
| Car insurance | Depending on the type of cover, car insurance can cover damage caused by your car to other people’s cars and property and injuries caused to other people. It can also protect against damage to your car caused by fire or theft. Some policies also cover damage to your own car, property and items stolen from your car. | Varies by policy. Read more about car insurance. | None |
| Home insurance | Depending on the type of cover, home insurance can cover damage to your buildings, contents, loss or damage to valuables even when outside your home and injury to other people in or around your home. | Varies by policy. For example, some policies will not cover flood damage. | None |
This is a general description of the main types of insurances that are available. Terms and conditions will vary between providers and their individual products. You should read providers' terms and conditions carefully and ask for a clear explanation of what is covered and excluded.