Before making any decisions about insurance, you need to think about what is important to you, including protecting your family, home, lifestyle and income. Ask yourself how you and/or your family would cope in the event of illness, injury or premature death.
pays out a lump sum if you die unexpectedly. It can be used to pay off outstanding debts or your mortgage, and to provide financial security for your loved ones.
Family income benefit
pays out a regular income for a set term to your dependents if you die unexpectedly.
Terminal illness cover
This is normally included with life cover policies for no additional cost and shouldn't be confused with critical illness cover. 'Terminal illness' means that you have been informed your illness will lead to death within the next 12 months. Where this cover is included in a policy, the plan will pay out the life cover prior to death, allowing a policyholder to put their affairs in order before they die. The plan will only pay out once and will not pay again on actual death - you need to think of it as a payment in advance.
It is important to check the T&Cs of any plan before taking out cover.
If you are sceptical about insurance, refer to the Money Advice Service Protection insurance – tips and myths. Remember that some protection is better than none, and you can get quotations for a set budget.
The information, money-saving tips, tools and techniques provided are for guidance purposes only and do not constitute financial advice. Where we provide links to third-party websites we are not responsible for their content. It is therefore important you carry out your own independent research.
If you need financial advice you can locate an adviser on the Personal Finance Society website below.