Shielding Your Future: The Importance of Protection Insurance Explained

May 28, 2024 | 0 comments

Even with the best intentions, life doesn’t always go 100% according to plan. So, it’s important to have the right insurance policies in place so that you and your loved ones are protected from financial instability during stressful life events.

What’s Protection Insurance?

Protection insurance is essentially an umbrella term which refers to the different types of insurance policies that can help you to navigate stressful or uncertain periods during your life.

Life insurance is one of the most well-known forms of protection insurance, however there are many other options available, including critical illness insurance, tenant protection, and income protection.

Why Should I Get Protection Insurance?

From mortgages and monthly rental costs to electricity and water bills, TV streaming services and the cost of groceries, we all have financial commitments that we need to pay every month in order to maintain our lifestyles.

But how would you continue to pay for everything if you sustained an injury or became ill and were no longer able to work?

Unless you have a significant pot of savings that you could draw upon, you might find yourself in financial difficulties even if you do qualify for benefits or additional support during your recovery.

But while many of us have insurance policies for our cars and our pets, which protect our wallets from unexpected costs, far fewer of us have protection insurance policies in place that would shield us and our families from the financial challenges that can arise as a result of injury, illness and death.

What Form of Protection Insurance Do I Need?

If you’re ready to take out an insurance policy, it’s worth knowing that protection insurance can generally be broken down into three main categories:

1. Life Insurance

In the event of your death, a life insurance policy can help to protect your loved ones from financial difficulties. Many people take out this form of protection insurance to ensure that their mortgage will be paid off or to ensure the financial security of their children.

2. Income Protection

An income protection policy will provide you with a regular monthly income in the event that you can’t work as a result of injury or illness. Income protection typically works in tandem with your employer’s sick pay policy, as it is designed to allow you to maintain your lifestyle whilst you focus on recovering.

3. Critical Illness Cover

Critical illness cover is a form of insurance designed to sustain your lifestyle if you are diagnosed with a critical illness. So, you will be able to focus on your treatment plan and recovery without the need to worry about how you’re going to pay the bills each month.

Each insurance provider has strict criteria that will need to be met before a payment is made on a claim, so it’s important to understand which conditions and illnesses are covered before purchasing your policy.