There’s no denying that while the idea of getting every manner of your life insured might well provide peace of mind, the huge diversity of types on offer can sometimes cause stress, too.
For families, knowing what exactly is needed can be challenging. With so many different types, policies, and plans out there, and the inevitable escalating costs associated with having all of them, the paradox of choice can sometimes grip you so hard that you end up suffocated. But you wouldn’t want to be living your life not wrapped in protective, speculative bubble wrap, now would you?
If you’re looking to narrow down your insurance options to the very essentials before securing your future, then you’ve come to the right place; here are 7 types of insurance your family might need.
Life Insurance
Life insurance ensures your family (and anyone financially dependent on you) is protected after your passing.
Also known as ‘life or death cover’, life insurance is a financial product that involves paying a monthly premium to an insurance company – the amount of which is dependent on your age, overall health, lifestyle, family medical history, occupation and other mitigating factors – who pledge to take care of an element of your finances when you die.
This could be, for instance, paying off your mortgage, covering your funeral expenses, or helping your spouse with a regular income that you would have otherwise provided.
When considering the most relevant life insurance for your family, it’s generally suggested that the most simple, all-encompassing cover is ‘Whole of Life’ insurance, which is a little more flexible. Unlike other types of life insurance which are designed to pay out within a fixed term, Whole of Life pays out a tax free single figure when you die.
For those overwhelmed by some of the terminology and options involved, this represents a refreshingly most straightforward choice.
Travel Insurance
Travel insurance is essential for families who love to explore new destinations. This type of insurance covers a range of potential issues that can arise while traveling, such as trip cancellations, medical emergencies, lost luggage, and travel delays.
For families, travel insurance can provide peace of mind knowing that unexpected events won’t ruin your vacation or lead to significant financial losses. Policies can be tailored to cover single trips, multiple trips within a year, or even long-term travel, making it a flexible option for different travel habits.
When choosing travel insurance, consider factors such as the destinations you plan to visit, the activities you’ll be engaging in (e.g., adventure sports), and any pre-existing medical conditions. This ensures that you have comprehensive coverage that meets your specific needs whilst potentially saving a little money along the way.
Health Insurance
Though the NHS is one of the UK’s greatest achievements and something we’re all very proud of, if you are keen for further reassurance for your family regarding health, then you might want to consider private health insurance. This covers the cost of being treated by private health suppliers, should you ever need to be.
In the UK, the majority of dental treatment is no longer provided on the NHS, so getting specific health insurance to cover dental costs might give you peace of mind over the health of your family’s teeth.
Vehicle Insurance
If you own a car, vehicle insurance is probably something you already have. This is because, in most places, it’s required by law.
However, you might be considering family car insurance, which covers more than one car in the house under the same policy, by adding named drivers to your contract or taking out a multi car policy. Should you have young drivers in the family or teenagers learning to drive, this could save them money whilst giving you peace of mind.
With this being the most popular form of insurance, it’s wise not to settle on the first car insurance you find. Companies like Compare the Market, GoCompare and One Sure could save you money by providing a greater range of options and choice.
Long-Term Disability Insurance
LTD, or long-term disability insurance, protects an individual from loss of income if they are unable to work for an extended period due to a disability. While many believe it’s not necessary, it’s still a good idea to have it, should you be keen to ensure your family is protected against as many eventualities as you can legitimately cover.
Accidents can happen, and you want to make sure that your family can still live comfortably should you be affected by one. Do be aware that short-term disability is a different thing altogether, and will not offer the same coverage as LTD.
Homeowner’s Insurance
Basic homeowner’s insurance protects the contents within your house. However, there are other more advanced policies that are better for families. For instance, some help cover the replacement of structural damage and even provide compensation for the cost of living somewhere else while your home is being repaired. It really is worth having, even if you don’t think your valuables are worth that much.
Pet Insurance
Our pets are like family, and we want to care for them as much as possible. Pet insurance ensures your furry friends get the attention they need without damaging your financial health. Of course, the cost will depend on the breed and age of your pet, but compared to other insurance types, it’s relatively affordable.
And that’s it. These were six types of insurance your family needs. By investing in the above and spending time choosing the right policies, you can make sure that everyone is safe and protected.
