Which insurance do you really need?

Insurance isn’t the sexiest subject, but get the right policies in place and your money will go further

Don’t just run for cover – here’s our guide to help protect you, your family and prized possessions

FIND THE RIGHT FIT

We all need car, buildings and contents insurance. Beyond that, tailor cover to fit your family and your finances.

‘If you have dependants, you really need life insurance,’ says Kevin Pratt, insurance expert at Moneysupermarket.com. ‘Travel insurance is essential, as the financial consequences of falling ill abroad can be devastating. Life events, like weddings, may also be worth covering – especially as the average one costs around £30,000.’

Claudia Hammond, psychologist and author of Mind Over Money, says: ‘Work out if you’re paying to insure against the financial impact of something happening or whether you’re paying out so you won’t kick yourself if you haven’t got insurance.’ TIP Carefully read each policy. Only 11% of home contents policies automatically cover personal possessions, including jewellery and other valuables, outside of the home.

LOOK AFTER NUMBER ONE

As well as insuring your possessions, think about yourself. ‘My two go-to policies would be life insurance, because you need to think about what would be left behind if you died, and income protection, because I think there could be a chance of being out of work for more than six months during my working life,’ says Raluca Boroianuomura, head of protection and health at the Association of British Insurers.

But just 39% of mums have a life insurance policy, and fewer than one in 10 would be able to pay three months of bills if they or their partner lost their income. You’re even more vulnerable if you work for yourself. ‘If you’re selfemployed with financial commitments but no safety net, income protection – which pays out a percentage of your earnings – could be very valuable,’ says Gareth Shaw, money expert at Which.

TIP Some employers will help out if you get ill, or pay out for death in service, so you won’t need as much insurance. Check what’s on offer.