What types of insurance can I have?

Saturday, January 03, 2009

You can protect yourself against unpredictable risks by taking out insurance. There is almost no limit to the risks you can insure against, but the most common types of insurance are listed below.

You can find out more by contacting the Association of British Insurers or going to an insurance broker or other insurance adviser.

• Unemployment Insurance - Protects your mortgage against loss of income.
• Life insurance - pays out to your dependents if you die or pays off your mortgage if you die
• Income protection insurance - replaces part of your income if you can't work because of long-term illness or disability
• Accident, sickness and unemployment (ASU) insurance - pays out a regular amount for a limited time - a year, say - if you can't work for health reasons or redundancy
• Creditor insurance - ASU insurance used to cover repayments for a particular loan
• Mortgage payment protection insurance - ASU insurance used to cover your mortgage payments
• Critical illness insurance - pays out a lump sum if you are diagnosed with a life-threatening condition, such as cancer or heart attack
• Private medical insurance - pays your bills to 'go private' if you need medical treatment
• Long-term care insurance - covers the cost of being looked after - usually in old age - if you can no longer manage on your own
• House buildings insurance - pays the cost of repairing or rebuilding your home if it is damaged by unforeseen events (as detailed in the insurance policy)
• House contents insurance - covers the cost of replacing possessions lost or damaged due to unforeseen events (as detailed in the insurance policy)
• Motor insurance - pays out if you injure someone or damage someone else's property while driving. It may also cover damage to your own car
• Holiday insurance - pays out if you unexpectedly have to cancel your holiday; are taken ill while away; injure somebody or damage somebody else's possessions; lose your own possessions; and so on.
• Pet insurance - Looking after a sick or injured pet can cost hundreds of £££s in vet bills. And even thousands if they develop a long-term illness. Make sure you've got sufficient cover. Pet insurance covers your pet against lifelong illness.

Contacts for UK insurance bodies

Insurance and your rights