Different Types of Personal Insurance
There are plenty of options when it comes to personal insurance and protection. In this article, we discuss a few of them and give a brief overview. These are not all necessary for every single person, so it’s important to do your own research and find out what is best for your situation.
Private health insurance ⚕️
This covers the cost of private medical care if you become ill. This helps get you fast healthcare and access to facilities, physicians and treatment, if and when you need it. This can help you avoid long NHS lines but does not always cover chronic conditions.
Buildings insurance 🏘️
This type of insurance aims to protect the bricks and mortar, the structure of your home and anything that couldn’t be removed if you were to move. It usually covers events such as fires, floods, theft, vandalism and other weather damage. And covers things such as pips, windows, ceilings, doors etc.
Contents insurance 💻
If you have a flood, for example, then buildings insurance would protect you for any structural damage to the property. Any possessions such as TVs, sofas and computers would be covered by contents insurance.
Life insurance 🌱
Life Insurance pays out a lump sum amount of money after you pass to help support your loved ones. This payout can be used for many different things such as debts, funeral costs or everyday payments.
There are two main types of life insurance and they both have their pros and cons.
Whole of life cover – This is where you’ll pay into a life insurance policy for a decided amount of time and your beneficiaries will receive a lump sum upon your death.
Term cover – Term cover is often much cheaper as both the monthly premiums (what you pay) and the payout will either stay the same (level term), reduce (decreasing term) or increase (increasing term) every month. We currently offer Term cover with a level or decreasing term option.
Critical illness cover 🧬
With this cover, you'll receive a payout if you get a critical illness as defined by the terms of the policy. Common critical illnesses covered can include cancer, stroke and a heart attack. These are types of conditions that will either lead to premature death and/or make you unable to work. The funds can be used to cover medical bills, replace income etc.
Income protection insurance 💷
With this form of cover, it insures your income if you are unable to work due to illness, injury or redundancy, and pays monthly benefits to cover your expenses. Actions under your control, such as being dismissed for gross conduct, generally aren’t going to be covered.
The terms of the plan are usually flexible and will be set up once you enter into the policy. You can opt for a specific amount to be paid each month or perhaps a set percentage of your income. You can also decide whether it will be a short or long term policy.
Personal accident insurance 🏥
Depending on your policy, this would help cover any injuries you receive as a result of an accident. Also, some policies cover minor injuries only, others cover fractures and still others need sign off from work to claim the injury. This is a one-time lump sum benefit and is very different from one policy to the next, so make sure you do your research.
Mortgage insurance 🏠
This is a more specific form of income protection insurance. It includes both Mortgage Life Insurance (cover against death) and Mortgage Payment Protection (cover in case you can’t work). The cover can be a little more flexible to cover household bills if you were willing to pay more into your policy. The duration can also be amended, depending on your needs.
This is just a quick glance at some of your options when it comes to protecting yourself and your loved ones. Currently, at Bequest we have Life Insurance cover and are excited for more products in the future! Check out our Life Insurance page and FAQs for more information.