7 important types of insurance that should be on your 2023 shopping list

One thing that you can be certain of in life is that unexpected events will happen. From small inconveniences like a prang in your car or a dropped phone to life-changing occurrences like a period out of work or a serious illness, it’s easy for your plans to be derailed.

At times like this, it can be incredibly valuable to have protection that helps you back on your feet and provides financial support at the precise time you need it.

The right insurance gives you peace of mind that you’ll receive a cash injection when it will help you most. It can provide reassurance that you won’t end up out of pocket if something unplanned happens. It also helps you sleep at night, knowing that you and your family’s plans won’t be thrown too far off course by an unexpected event.

So, if you want to rest easy knowing that you have the right cover in place, here are seven types of insurance that should be on your shopping list this year.

Life insurance

No one wants to think about what would happen if they or a loved one passes away. However, considering how you and your family would manage financially if you lost someone close to you should be a priority.

Life insurance will pay a tax-free lump sum on death. You can use the payout to:

• Pay off debts such as a mortgage
• Replace the income of the person who has died
• Pay for expenses such as a funeral
• Ensure you leave money as a legacy to a loved one such as a child or grandchild
• Ensure your loved ones have vital financial support at an emotional time when they will really need it.

Life insurance is particularly beneficial if you have children, or a partner who relies on your income. It’s also useful if you have a large debt, such as a mortgage, that you would like to repay if something happened to you.

Cover starts from just a few pounds a month and can provide genuinely invaluable support if the worst were to happen. Getting a life insurance quote online is really easy, and we can help you find the best price for your cover by scouring the market on your behalf.

Contents insurance

Your home is likely to be full of valuable items, from your clothes and shoes to electrical appliances like your TV and games console.

So, what would you do if you experienced a fire or flood, and your belongings were damaged? Could you afford to replace your valuables if you were the victim of a burglary? And could you pay for damage to sofas, carpets, and ceilings if you had a spillage or accident?

Contents insurance ensures that you could afford to replace your prized possessions after an unexpected event.

Many contents policies can include “accidental damage” cover that would ensure you could claim if something unexpected were to happen – such as a paint spillage or a leaky pipe.

You can tailor your contents policy to your own needs, including covering expensive items such as PCs, camera, or jewellery. You can also extend your cover “away from the home” if you want to be sure you have comprehensive cover for items you take out regularly.

Critical Illness cover

Being diagnosed with a serious illness is more common than you might think. 

According to Cancer Research UK, 1 in 2 people in the UK will be diagnosed with cancer at some time in their life.

The British Heart Foundation (BHF) say that, in the UK, there are as many as 100,000 hospital admissions each year due to heart attacks – equivalent to one every five minutes. Around 1.4 million people alive in the UK today have survived a heart attack.

If you were to be diagnosed with a serious condition such as cancer or multiple sclerosis, or you have a heart attack or stroke, the consequences could be far-reaching. You might have to take an extended period off work, or even give up work entirely. That could have a significant impact on your income and earning potential, leaving you in a difficult financial position.

Critical Illness cover will pay a tax-free lump sum if you’re diagnosed with a specific selection of conditions and illnesses covered under your policy. You can typically expect a Critical Illness policy to cover:

• Many types of cancer
• Heart attack
• Major organ transplant
• Permanent and irreversible blindness or deafness
• Coma with associated permanent symptoms
• Dementia including Alzheimer’s disease
• Motor neurone disease
• Multiple sclerosis
• Parkinson's disease 
• Stroke 

Receiving a payout on diagnosis can ensure you can focus on your recovery without worrying about your finances. You can use it to pay off debts, replace your income, or to meet additional costs you might incur during your recuperation.

Get a Critical Illness cover quote online now.

Pet insurance

If you have a pet, you’ll know how quickly vets’ bills can pile up. According to the Association of British Insurers (ABI), the average cost for treating a cat’s respiratory condition is £726 while treating a dog with diabetes can cost more than £1,200.

So, it’s perhaps no surprise that the ABI report the average pet insurance claim was £848 in 2021, up from £817 in 2020.

Pet insurance helps with the cost of paying a vet’s bill and gives you the peace of mind that you won’t be hundreds or thousands of pounds out of pocket if your pet needs treatment. 

The ABI say that 4.3 million pets are protected by insurance – so make sure you have the reassurance of financial help if your beloved pet is under a vet’s care.

Comprehensive car insurance

Third-party car insurance is the minimum you can legally have. While this covers you for the costs of injury or damage you cause to other people or their property it doesn’t give you any protection if your own car is damaged or stolen.

So, in 2023, upgrading to comprehensive car insurance could give you greater protection.

As well as all the cover you get from a third-party, fire, and theft policy, it will also protect you as a driver and may pay out for damage to your car. It could also include compensation for medical treatment, legal expenses, and accidental damage.

Key person insurance

If you run a company, it’s likely that you have members of staff who are essential to the successful operation of your business. You might have skilled technicians, people with company-specific expertise, or directors who take on critical roles.

Losing one of these people could have dire consequences for your business, so it’s vital that you put the right protection in place.

Key person insurance exists to provide financial support if someone critical to the operation of your business were to pass away or if they were diagnosed with a serious illness.

The lump sum you receive can ensure your firm can continue to trade, helping you to replace key individuals or provide funds to purchase shares from the deceased owner’s estate.

While you can replace stock or premises, replacing a key person is not nearly as easy. Putting the relevant insurance in place will help you to ensure that your business can survive the loss of a key person – including yourself.

Income protection

As the last couple of years have shown us, ill health can strike at any time. If you’re off work for an extended period you may end up on Statutory Sick Pay, which could make it hard for you to maintain your regular commitments.

Income protection is designed to replace part of your income if you’re off work due to illness or accident. It provides a valuable safety net and can help you to pay your bills while you recover.

Get in touch

If you want to ensure you and your loved ones receive the right financial support when the unexpected happens, we can help.

We’re life insurance, Critical Illness cover, and income protection experts. We work with dozens of the UK’s leading insurers and can help you to find the cover you need without paying more than you need to.

Get an online quote now or contact us to speak to one of our experts.