Top five insurance policies to take out
Part of our ‘stay safe and stay smart’ campaign naturally includes insurance. With the cost of living skyrocketing, we look at which insurance you really need, plus how to save money without facing expensive premiums.
Income Protection
Unfortunately, many people often avoid this one. The thought is very scary. Imagine losing your income due to illness or injury. However, if you get caught out, you could be in a serious position. Instead, choose a policy that provides enough coverage to maintain your current lifestyle even if you can no longer work.
While income protection insurance and employers’ liability insurance both pay for disabilities, income protection is not limited to disabilities or injuries at work.
Life Insurance
Life insurance protects your loved ones who are financially dependent on you. If your parents, spouse, children, or other loved ones would face financial hardship if you died, consider how much you earn each year (and how many years you plan to remain employed). Then purchase a policy to replace that income in the event of your untimely demise. Factor in the cost of burial too, as unexpected costs can burden many families.
Private Medical Insurance
Despite having the incredible NHS in the UK, health insurance should be high on your list. Often, policies can collaborate with some services available on the NHS, saving you money. This could be due to long wait times, the unavailability of specialist doctors, or the kind of hospital care you require, such as a private room. Having five-star service is particularly important when searching for a diagnosis or if you are unwell.
Don’t wait until you need it to take out a policy. Many insurances have a waiting period, and you may not be able to get insurance if you have a pre-existing condition.
- Homeowner’s Insurance or Renter’s Insurance We don’t need to tell you this twice, but imagine having to pay to replace all your furniture, appliances, or clothes. The cost would be much higher than taking out homeowner’s insurance or renter’s insurance! Equally, can you afford to rebuild your house while still paying the mortgage? It’s a no-brainer.
- Car Insurance Last but not least! Car insurance is a must in the UK. In fact, it’s illegal to drive without it. However, coverage can vary depending on your policy, so ensure you are completely protected.
How to save money when buying insurance:
- Check that the policy covers what you need and doesn’t include unnecessary items that increase the price. Check exclusions and excess amounts.
- Always answer the insurer’s questions honestly; otherwise, you may waste time buying cover.
- Before auto-renewing, check for a better, more competitive deal elsewhere.
- Renew as early as possible to get the best price.
- If possible, consider paying annually; it can be more expensive to pay your premium monthly by direct debit.
- If your needs are complex, find an insurance broker through the British Insurance Brokers’ Association or consult your financial adviser.
- Instead of buying expensive mobile or appliance cover, consider self-insuring: Save the money it would cost to replace the item in a savings account, and keep it if you don’t need to use it!
Do you have time to answer our quick poll? Do you have any of our top five insurances? a. Yes – all five! b. Some, but not all (they are…) c. No, I don’t have any, but I know I need to. Send me more information!