Some people may even take out every type of insurance possible just to ensure that they have everything covered, however this is not always best as why pay for cover you may not need or does not suit your position at that point in time. Friends and family may be able to advise you on what they believe is a good policy perhaps, however an adviser would be much better at giving you advice on what it is you should consider taking out.
For example an individual may want to take out life insurance, critical illness cover, income protection or accident sickness and unemployment. However as it is possible to take out all the cover you may want to prioritise what exactly is best for you so that the monthly cost fits within your budget as it may not be advisable to take out all plans and not be able to cover yourself for exactly what you need when you could take out only one or two plans and ensure that you have the correct level of cover.
Critical illness cover covers you if diagnosed with an illness which is listed in a companies key features, life insurance pays out upon death, income protection covers you if you were unable to work however this is dependent on your occupation class and accident sickness and unemployment is fairly straightforward as it pays you if you were off work again if you have had an accident, were sick or were unemployed however there is a waiting period on these types of plans which would need to be discussed prior to taking out the insurance as it will affect the price of the contract but also determine how long it would be until you received the monthly benefit.
In most cases it would be advisable that if you have a mortgage then you should protect this in the event of being ill and therefore may not be able to work and so cannot pay the bills to ensure that you keep a roof over your head perhaps. You would need to ensure that you looked at taking out critical illness cover which covered you for the outstanding amount on your mortgage and if taking out a plan on a decreasing basis this will then ensure that it will always cover you for what you would owe on your mortgage at any given point throughout the contract. This would cost less on a monthly basis than taking out a policy which means that the sum assured stayed the same from the point of time when you took the policy out to then when the policy ceased. It may be an advantage to look at including life insurance as it would typically not change the cost of the insurance by much per month and would give you that extra benefit and most plans taken out would tend to include life insurance.
You may want to consider some form of protection to cover yourself if you were off work due to accident or had become ill, however an individuals mortgage would tend to be their main concern if they were to suffer an illness however it may be just as important to cover the outgoings if they could not work for a few months if they did not have the financial security. You would only be able to insure yourself for a certain percentage of your income; you would not be able to pay to cover your full salary. However you may receive some benefits from your employer depending on what is in your contract.
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Critical illness cover is fairly straightforward in terms of you choose the sum assured and the term and as long as you are happy with the price that is the basic decisions you need to know before looking in to contents of the cover.
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