Health, income & life cover
Lesson 10 of 13 in our free Insurance guide: a 5-minute money game with the key points below.
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Quick facts
- Pays your family if you die → Life insurance. Often linked to mortgages or children.
- Pays a monthly amount if you're too ill to work → Income protection. Replaces part of your income.
- Pays a lump sum if you're diagnosed with a listed condition → Critical illness. Only conditions on the list count.
- Mo, 20, student, no dependants → Less of a priority. Nobody relies on Mo's income (yet).
- A single parent with two kids → More of a priority. Kids rely on that income. Big priority.
- A couple who just took out a joint mortgage → More of a priority. If one income disappears, the mortgage doesn't.
- Someone whose employer pays 6 months' full sick pay → Less of a priority. Workplace benefits already cover part of the risk. Check yours.
- Fact: “Many employers offer 'death in service' benefits.” — A workplace perk that can pay out a multiple of salary. Check your contract or staff handbook.
- Myth: “Everyone needs every type of protection insurance.” — It depends on who relies on you and what cover you already have.
- Myth: “Statutory Sick Pay replaces your full wage.” — It's a basic weekly amount, much less than most wages. Some employers pay more.