Different insurance policies in UK
Insurance protects you and your belongings from the financial costs that can arise if something goes wrong.
He cannot stop the bad. But if something unexpected happens—like theft, a car accident, or illness on vacation—it means you won’t have to pay the full price out of pocket.
Insurance is about risk management. There are cases when insurance is mandatory. For others, it depends on your situation and the level of risk you’re willing to take.
Below is an introduction to the most common types of insurance to help you better understand what types you may need.
Note that some bank accounts offer insurance as part of their benefits package, e.g. b. Travel, accident or mobile phone insurance. So, before taking a new policy, you should check if you already have other insurance.
Types of guarantee
- Household insurance
- Car insurance
- Life insurance
- Travel insurance
- Health insurance
- Animal insurance
- Household insurance
If you own a home, you will probably need home insurance as a condition of your mortgage. It will not cover you for normal wear and tear. However, it will cover the cost of repairing or rebuilding your home if it is damaged by storm, flood, fire, lightning or demolition.
Landlords and tenants can get inventory insurance. Although not a legal obligation, it applies to your property if it is damaged, stolen or lost. For example, in the event of a fire, flood or burglary in your home, the cost of replacing your property will be covered.
When shopping for home and property insurance, many insurance companies offer discounts when you combine your policies, which can help you get a cheaper deal.
- Car insurance
You must have car insurance by law if you drive a car.
Civil liability covers any damage caused to the vehicle or other person’s property. However, this does not cover damage to your vehicle. If you rarely use your car or think it’s not worth much, you may decide it’s enough.
Fire and theft liability insurance protects not only other people, but also your own vehicle if it is stolen or damaged by fire.
Comprehensive insurance is the highest level of insurance you can get. They include all kinds of third-party fire and theft protection, but they also protect you as the driver and can pay for damage to your car.
You might also be interested in Money Helper’s handy guide to choosing the right car insurance.
- Life insurance
Life insurance protects you and your family. If your family’s main breadwinner becomes seriously ill or dies, the financial impact can be significant. Life insurance can give your family peace of mind that they will be taken care of should something terrible happen.
There are 3 main types of life insurance:
- Life Insurance – This provides for your family members together in case of death
- Critical Illness – Here you can get a lump sum if you are unable to work due to health reasons such as heart attack, cancer or stroke.
- Income support – guaranteed regular payment if you are unable to work due to illness or disability
If you have no dependents, you may decide you don’t need life insurance. However, if you have a spouse or family that depends on your income, it’s worth checking, for example to cover your mortgage.
Another factor to consider is price. If you’re young and healthy, life insurance is a good value – it gives you high coverage at a relatively low cost. If you take it out later, it may cost you more.
- Travel insurance
When planning a vacation, the last thing you want to think about is if something goes wrong. Travel insurance can protect you if you do.
Travel insurance can cover a variety of events, so it’s worth thinking about when booking your next trip. There is a buy-back feature after booking to protect you in the event of cancellation or illness before departure.
If you travel two or more times a year, an annual policy is often cheaper. Whether you buy travel insurance for a single trip or multiple trips, it can prevent an unfortunate event from being too expensive.
Since the pandemic began, most policies do not cover cancellations due to the coronavirus. Some won’t even cover your medical costs if you catch the virus outside of the UK, so check the exclusions carefully before you buy.
M&S travel insurance is provided by Aviva Insurance Limited. The annual minimum age for multiple trips is up to 80 years and there is no limit for single trips. M&S Travel Insurance is not available to customers based in the Channel Islands or Isle of Man.
- Health insurance
Most people in the UK are covered by the National Health Service (NHS). However, if you prefer private treatment or don’t want to wait for treatment from the NHS, you can opt for private health insurance – also known as private health insurance.
Before purchasing private health insurance, it is important to think carefully about what is covered and what is not. You should also check the exclusions to make sure you are getting the coverage you need. For example, some health plans may not cover people with pre-existing medical conditions.
Some employers offer health insurance as part of their benefits package.
HSBC doesn’t offer health insurance to customers, but here’s a handy guide from Money Helper on what private health insurance covers.
- Animal insurance
Pet insurance is optional, as is travel insurance. If something happens to your beloved pet, this will help cover your costs and ensure they get the care they need.
If your pet is relatively young and healthy, you may not think pet insurance is worth it. Alternatively, you can put money into a savings account to cover all expenses.
If you choose this approach, you should consider the following:
How high can you realistically set it?
If you can be disciplined and not put money in the pot for other things
What do you do when you have to pay the vet bill before you save enough to cover it?
Note that if you cancel your policy later in your pet’s life, after they show signs of injury or illness, you may not be able to claim the status.
