What is personal and family protection insurance and why is it important?

sarahgibson • 28 Apr 2021

If you have a mortgage, people who depend on your income, or you want to protect your lifestyle in the event of an accident or illness protection insurance could help you and your family avoid a financial disaster.

Life and protection insurance is the best way to secure your financial future against the risk of an unexpected loss of income. Having this cover in place can also help you to deal with any financial difficulties that may arise, such as not being able to keep up with your mortgage repayments. Nobody likes to imagine the worst happening, but sometimes the difficult questions need to be considered. If you were to die, would your loved ones be able to maintain their current lifestyle without your income? If not, then a lump sum life assurance payment could be the answer, helping your family to continue living in the way they’re accustomed to at a very difficult time.

If you or your family were to come up against a situation that meant you would lose your regular income, a protection policy could help you to:

  •  Pay off your mortgage or continue making Mortgage repayments
  •  Maintain you or your family’s lifestyle
  •  Pay for replacement childcare
  •  Cover school or university fees
  •  Pay for specialist nursing support

You may already have life and protection insurance in place, but it’s always worth reviewing your policies to ensure the type and amount of cover provided still matches your personal circumstances. For example, you may have moved home or had children since you originally took out the policies.