Insurance and Protecting Your Family
If something happened to you, would your family be able to keep up with the mortgage, the bills and everyday life? Protection insurance is how people cover that risk, whether it's a lump sum if you die, a replacement income if you can't work, or releasing money from your home in later life. This section explains the main types in clear terms: what each one does, who it suits, and the traps to watch for. It's general information to help you understand your options, not financial advice, and we always point you to free, impartial guidance and regulated advisers.
- ✓Life insurance pays a lump sum (or income) if you die, the core way to protect a mortgage and dependents.
- ✓Income protection replaces part of your income if illness or injury stops you working, often the most overlooked cover.
- ✓Critical illness cover pays a lump sum if you're diagnosed with a serious named condition.
- ✓Over-50s plans offer guaranteed acceptance with no medical, but you can pay in more than they pay out.
- ✓Equity release lets older homeowners unlock cash from their home, but it's a big decision with mandatory regulated advice.
Get instant help right now
A Citizens Advice appointment can take weeks. Our free assistant is available 24/7 with no appointment, giving you clear, step-by-step answers about your exact situation, what to do next, and the deadlines that matter.
Need to take action? It can draft a ready-to-send formal letter for you (optional, from £4.99).
England, Scotland, Wales & Northern Ireland.
The main types of protection
How to think about what you need
There is no one-size-fits-all answer, it depends on who relies on you and what you'd struggle to pay for. A useful way to start:
- ✓Who depends on your income? A partner, children, anyone you care for
- ✓What would have to be paid if you died or couldn't work? Mortgage, rent, bills, childcare
- ✓What would you fall back on? Savings, a partner's income, and remember statutory sick pay is only £123.25 a week
- ✓What you already have, many employers provide death-in-service or sick pay, so check before you buy
Getting advice you can trust
Insurance and equity release are regulated financial products. Good, independent help is available, and much of it is free:
- ✓MoneyHelper (moneyhelper.org.uk), the government's free, impartial money guidance service
- ✓An FCA-regulated insurance broker or financial adviser, check they're on the Financial Services Register at register.fca.org.uk
- ✓For equity release specifically, advice from a qualified adviser and a solicitor is required, not optional
Get instant help right now
A Citizens Advice appointment can take weeks. Our free assistant is available 24/7 with no appointment, giving you clear, step-by-step answers about your exact situation, what to do next, and the deadlines that matter.
Need to take action? It can draft a ready-to-send formal letter for you (optional, from £4.99).
England, Scotland, Wales & Northern Ireland.
Frequently asked questions
What's the difference between life insurance and income protection?
Life insurance pays out a lump sum (or an income) if you die during the policy, protecting your family and any mortgage. Income protection pays you a regular replacement income while you're alive but unable to work because of illness or injury. Many people need both: life insurance for death, income protection for long-term sickness, which is statistically more likely during your working life.
Do I really need protection insurance?
It depends on who relies on you and what would happen to them financially if you died or couldn't work. If you have a mortgage, a partner or children who depend on your income, some cover is usually worth considering, especially as statutory sick pay is only £123.25 a week. If you have no dependents and few financial commitments, you may need little or none. Check what your employer already provides first.
Where can I get free, impartial advice about insurance?
MoneyHelper (moneyhelper.org.uk) is the government's free and impartial money guidance service and a good starting point. For a personal recommendation you can use an FCA-regulated insurance broker or financial adviser, check they appear on the Financial Services Register at register.fca.org.uk. For equity release, regulated advice from a qualified adviser and a solicitor is a legal requirement, not just a good idea.
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