Life cover through your employer is a useful benefit, but it’s often limited to a multiple of your salary and ends if you leave the job. It may not provide enough support for your family, especially when you factor in long-term financial needs. Relying solely on employer cover leaves you exposed to changes in employment. Having a personal policy in place gives you certainty and control, ensuring your family is protected no matter what happens with your job.

Mortgage protection is designed to clear your home loan if you pass away, which helps your family stay in the home. However, it does nothing beyond that. It won’t replace your income, cover daily living expenses, cover childcare costs or contribute towards future costs like schooling or retirement planning for your partner. A comprehensive protection plan looks beyond just the mortgage and ensures your family has the financial support they need to maintain their lifestyle if you’re no longer around.

The main types of cover are life insurance, income protection, and serious illness cover. Life cover pays a lump sum to your family if you pass away, while serious illness cover pays out if you are diagnosed with a major illness. Income protection is particularly important, as it replaces your income if you are unable to work due to illness or injury. For most people, their ability to earn is their greatest financial asset, so protecting it is key. A well-structured plan combines these elements based on your lifestyle, income, and financial responsibilities