Insurance is an extremely useful tool when it comes to significant purchases like a home, car or holiday, but there are so many different types it can often be difficult to decipher exactly what you need. To help make your life a little bit easier, we’ve put together a selection of the main types of insurance and what they all do, removing the jargon so you don’t have to.
Anyone jetting off on holiday will know that they need some form of travel insurance, but with so many types on offer they may not know which will best suit them.
Single trip travel insurance will cover you for one individual trip, with standard and comprehensive cover available as well as additional cover options that help to tailor the insurance to your trip and specific itinerary.
However, people who travel more than once a year may be able to benefit from Annual Multi Trip policies, which could save them money and hassle in the long run. People who opt for this type of policy are covered for as many getaways as they care to take, amounting to up to 183 days away each year.
Medical travel insurance is a must for anyone with pre-existing medical conditions, as it has an extra emphasis on looking after you if any health concerns should arise while abroad.
People planning on staying away for more than three months will want to secure a Long Stay Travel Insurance policy to make sure they are covered for the whole time they are away.
Health and life insurance
Private Medical Insurance falls under the umbrella term of health insurance, and is ideal for anyone who wants the extra safety net of being looked after at a private facility should they fall ill. There are many types of plans to choose from, so it is important to speak to an expert who can provide you with all the information to make the right decision.
Life Insurance provides peace of mind that should something happen to you, your loved ones will be well looked after and will not have financial concerns at an already difficult time. There are different types of Life Insurances available, based around the period for which the policies are valid. Term Assurance provides cover at a fixed-rate premium for a set period of time, Family Income Insurance looks after your family with a monthly income for the duration of the policy’s term and Whole of Life Insurance provides cover for the whole of your life rather than a specific term.
Most people will want to secure both health and life insurance policies, with one way of doing this being to combine a life and health insurance in to one policy.
Buildings insurance is vital for anyone aiming to secure a mortgage, with most lenders naming this type of cover as a requirement. It covers your property for physical and structural damage, with the value based on how much it would cost to rebuild the property from scratch rather than market value.
Contents Insurance is a more optional policy, but arguably equally as important. It covers the things in your home that Buildings Insurance does no;, including furniture, electrical goods, carpets and curtains. When considering whether to take out such a policy it is a good idea to think about whether you could afford to replace all your valuables if they were to be lost, stolen or damaged.
Car insurance is a legal requirement for drivers and good policies are specially tailored to reward careful drivers. There are a number of different options to choose from, including Breakdown Cover, designed to help you out in an emergency. Lastly, legal cover provides insurance for personal injury, accidental repair costs and compensation.