If you decide you want financial advice, you can begin your search for the most appropriate regulated financial adviser for you by simply entering your postcode below:
It’s unlikely that you’ll need every insurance product on the market, even if you could afford them all. But how do you know whether your hard-earned cash is going on the policies you need the most? The table below is designed to help you make the right decisions for you and your household budget.
Third party – this covers other people (such as your passengers) involved in an accident, or damage to other people’s property, but if your car is damaged or stolen you have to pay for it yourself
Third party, fire and theft – like third party but covers repairs or replacement if your car is stolen or set on fire
Comprehensive – covers everything above and also covers damage to your own car
Yes, you are legally obliged to have at least third party cover.
It protects you against personal injury claims which can run into millions of pounds
Driving without insurance will lead to disqualification from driving and possibly prison
Insurance for young, newly qualified drivers is very expensive
If you need to claim there is often a gap between what the insurer pays out and the cost of replacing your car
Life insurance, critical illness, income protection and payment protection
What does life insurance, critical illness, income protection and payment protection cover?
Do you need it?
Life insurance
It pays your dependants a lump sum or regular payments if you die
Yes, if your children or partner depend on your income to cover the mortgage or other living expenses.
Check whether you have an employee package that includes ‘death in service’ benefits, if so, you might not need more life insurance or maybe just a top-up
If you’re young and healthy, life insurance is very good value for money – providing high cover at a relatively low cost
It only covers death – it won’t cover you if you can’t work due to illness or disability
Existing medical conditions might not be covered and – if you have a serious health problem – you might not be able to get cover or only at a high cost
It pays a ‘lump sum’ (or some policies will pay an income) if you’re diagnosed with a specific serious illness, for example:
Heart attack
Stroke
Certain types and stages of cancer
Conditions such as multiple sclerosis
Most policies will also pay out if you’re permanently and totally disabled after an injury or illness
It’s not as important as life insurance but you might need it if you and your family depend on your income to cover the mortgage or other living expenses.
Check whether you have an employee package that provides an income if you can’t work for a long period – you might not need critical illness cover
If you couldn’t support yourself and your dependants if you were too ill to work, then you should consider critical illness or income protection cover
If you can afford it – you can buy a combined life and critical illness policy
A payout can make a big difference when you need it most, for example you could use it to pay off your mortgage
Some cancers and ‘chronic’ conditions might not be covered, even if they mean you can’t work
Health problems you had before you took out the insurance are very unlikely to be covered
What does private medical and dental insurance cover?
Do you need it?
Private medical insurance
Health insurance reimburses the cost of all or some of your medical bills if you pay for your own healthcare
Basic private medical insurance covers most in-patient treatments (tests and surgery) and day-care surgery. Some policies also cover out-patient treatments (such as specialists and consultants)
It doesn’t usually cover treatment for:
Pre-existing medical conditions
Chronic illnesses such as diabetes, mental health issues and depression
Cosmetic surgery
Routine check-ups
Pregnancy
You get free treatment on the NHS, so you only need private medical insurance if:
You think you might need treatment you can’t get on the NHS, like specialist surgery for sports-related injuries, or certain cancer drugs or treatment
You just don’t want to use the NHS and would prefer to stick to private hospitals and clinics where possible
Other factors
You can ask your GP to refer you to a private expert or specialist
If the NHS won’t let you have a scan or makes you wait, you can use your cover to pay for it
You can use your insurance to reduce the time you spend waiting for NHS treatment
It can be expensive, depending on what types of treatment you want to be covered for
Premiums rise every year, and with age, so by the time you’re older and more likely to need hospital treatment, you might not be able to afford the premiums
Covers the cost of veterinary treatment for your pet
Annual jabs, spaying and neutering are not covered
Optional – if you can’t afford the cost of treatment out of your spare income, you should consider getting insurance.
Most needed if you have a breed of dog or cat that’s likely to cost you a lot in medical care
Veterinary bills are costly and rising all the time – if your pet gets a very serious injury or a chronic illness, pet insurance can be good value for money
Keep up with regular vaccinations or your pet insurance won’t pay out if you need to claim
It’s difficult to get cover for a pet that is old or already has a medical condition
If you decide you want financial advice, you can begin your search for the most appropriate regulated financial adviser for you by simply entering your postcode below:
We use cookies to help deliver you the best service. By continuing to use AdviserBook, you are agreeing to this. Learn more: Cookies Policy.
AdviserBook is a trading style of Project AB Limited. Registered in England & Wales at 5&6 Waterside Court, Albany Street, Newport, NP20 5NT (No. 14765054).
All financial advice firms displayed are provided by the Financial Conduct Authority (FCA), meaning they are authorised and regulated at the time of the last data feed.
