- Cars, vans and motorbikes must be insured. Beware of calling the insurer after a small scrape to see if if is worth claiming - it will put up your next premium whether you actually claim or not.
- Life insurance is only worth having if you have someone who is financially dependant on you. If you have children, then term assurance, which pays out if you die while they are in education, is good value. If you have a joint mortgage, insure both your lives so the debt is paid if either dies. Otherwise only insure your life if your death would cause a partner/family member financial hardship. Factor in what your pension scheme will pay.
- Income protection pays you if illness keeps you off work for a long time. Check how much and for how long it will pay out and factor in what your employer will pay. Don't confuse this with critical illness cover, which is generally worse value.
- Buildings cover is compulsory if you have a mortgage. If you own outright, it is a good idea as it is relatively cheap and protects against disaster. Usually it does not cover fences, sheds or garden items.
- Contents cover. Most people have elecronic devices, clothes, jewellery and possessions which would cost thousands of pounds to replace. So insuring new for old is a good idea. Make sure your home is kept secure and that the insurance still applies when you are out of the house or abroad. That can be the best way to insure mobile phones.
- Travel insurance is vital if you are going to countries where medical costs are highm such as the USA. Make sure it includes any sports you plan to do. Lost luggage and cancellations may be hard to claim for. An annual policy can be a good idea if you regularly take several foreign holidays a year.
- Most other insurance is very expensive for what it offers. Read terms and conditions carefully.
Wednesday, 19 August 2015
What Insurance Do You Need?
A quick run down on various types of insurance.
