Protection insurance isn’t about expecting the worst—it’s about being prepared. Just as we insure our cars and homes, it makes sense to protect our income, health, and loved ones too. The right protection policy ensures that no matter what happens, you and your family can maintain financial stability. Life is full of uncertainties. While we can’t predict what’s around the corner, we can take steps to protect ourselves and our loved ones financially. That’s where protection insurance comes in. Whether it’s making sure your mortgage can be repaid, ensuring you have an income if you can’t work, or providing financial support in the event of a critical illness or death, having the right cover in place offers invaluable peace of mind.
In this guide, we’ll break down the three key types of protection insurance, we will explore what they cover, why they’re important, and how they can help secure your future.
Firstly, let’s have a look at Mortgage Protection
What is it?
Mortgage protection is a type of life insurance designed to pay off your mortgage if you pass away before it’s fully repaid. It ensures that your family can remain in their home without the financial burden of ongoing mortgage payments.
What does it cover?
- If you die during the policy term, a lump sum is paid to cover the remaining mortgage balance.
- Some policies also cover serious illness or disability, depending on the level of cover chosen.
Why is it worth considering?
- Your home is likely your biggest asset—mortgage protection ensures your loved ones can stay in it.
- Many mortgage lenders require this type of cover as part of your mortgage agreement.
- Affordable peace of mind—this is typically one of the most cost-effective types of insurance.
This type of protection, we always say is more cover for your family and loved ones, Mortgage Protection is vital when you are looking to take out or already have a mortgage especially if it’s a joint mortgage with your partner or if your have children that are dependent on you. Just thing if you were to pass away what would happen to your family’s home and how could they afford the mortgage without you.
Next let’s have a look at Income Protection and how this could help you and your family.
What is it?
Income protection provides a regular replacement income if you’re unable to work due to illness or injury. Unlike statutory sick pay (which is often minimal and short-term), income protection can cover a significant percentage of your salary for an extended period.
What does it cover?
- Pays a percentage of your salary (typically 50–70%) if you’re unable to work due to illness or injury.
- Can be short-term (covering a few years) or long-term (lasting until retirement).
- Some policies offer additional benefits, such as rehabilitation support.
Why is it worth considering?
- Bills don’t stop if you can’t work—this cover ensures you can keep paying your mortgage, rent, and daily expenses.
- More comprehensive than employer sick pay, which usually only lasts a few months.
This type of protection is vital if you are self-employed or employed and so not sick pay or sick pay for a short period of time. How would you be able to pay your household bills if you couldn’t work? When speaking to clients that have got into arrears with bills and credit commitments a lot of the time this is due to being out of work and having a loss of income due to sickness or accident.
Lastly let’s check out Critical Illness Cover and what protection this would give you.
What is it?
Critical illness cover pays out a tax-free lump sum if you’re diagnosed with a serious illness covered by the policy. Unlike income protection, which provides ongoing payments, critical illness cover gives you a one-off payout to help with medical costs, lifestyle changes, or financial security.
What does it cover?
- Most policies cover conditions like cancer, heart attack, stroke, multiple sclerosis, and organ failure.
- Some include children’s critical illness cover, offering a payout if your child is diagnosed with a covered condition.
- Payments can be used for anything—from covering lost income to funding private treatment.
Why is it worth considering?
- A serious illness can mean time off work, expensive treatments, or home modifications—this payout can help cover those costs.
- Provides financial security at a difficult time, allowing you to focus on recovery instead of money worries.
- Many policies now include early-stage cancer coverage, making them more comprehensive than ever.
Often Critical Illness cover is also looked at when you take out Mortgage Protection. Critical Illness cover now adays is more relevant than ever with more people living longer and technology and science becoming more advanced, years ago if you were diagnosed with cancer there was a good chance you would were going to die, now adays depending on the cancer, there could be a good chance you will survive. This may still mean though you might not be able to work for a long length of time or go back to work at all, you may need your home adapting or specialist treatments. Critical illness can help with all of these worries.
The best protection policy depends on your circumstances, but here’s a quick way to decide:
✅ Homeowner with a mortgage? → Mortgage protection is essential.
✅ Concerned about losing income due to illness/injury? → Income protection is a must.
✅ Want financial security in case of serious illness? → Critical illness cover is worth considering.
Some people choose to combine policies for comprehensive cover—for example, life insurance with critical illness cover or income protection alongside mortgage protection.
Final Thoughts: A Small Cost for Lifelong Security
If you’re unsure which policy is right for you, please give us a call and we would love to have a chat with you and help answer your questions and help tailor the right coverage to your needs. Peace of mind is priceless—and protection insurance is one of the best ways to achieve it.
Would you like advice on choosing the right cover? Let’s start the conversation!