Which insurances are essential?

There are lots of different types of insurance, but they are not all equally important. If you are trying to work out which insurance policies you are willing to pay for, we can help. Here is everything you need to know about the policies you should keep and the ones you can get rid of.

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Home insurance

If you are a homeowner, it is likely that home insurance will be a legal component of your mortgage; however, home insurance is not always necessary, especially if you have paid off your mortgage. Whilst it is not compulsory, it is very, very useful to have and you should shop around to find a home insurance deal that suits your specific needs; for example, some policies are affected by the size of the family or the possessions in the home.

Life insurance

If you have no debt or dependents, life insurance may not be necessary; however, if you do have loved ones or any kind of debt, we strongly suggest that you invest in life insurance for your own peace of mind and to protect those you leave behind.

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If you are not sure where to start, consider contacting a financial advisor to help you. They can use software for financial advisers from providers such as intelliflo.com/financial-adviser-software to work out which life insurance policy is best for you and your family.

Motor insurance

If you have a car, motor insurance is essential; in fact, it is a legal requirement. You should definitely make sure that your car is insured before you take it out on the roads.

Travel insurance

Travel insurance is not compulsory; however, if you are travelling abroad, it is definitely worthwhile. This is because it will cover the costs if something goes wrong, which could potentially save you a lot of money. It is not necessary if you are travelling in the UK, as you will still be covered by the NHS.

Mobile phone insurance

Mobile phone insurance is generally unnecessary. This is because it is fairly expensive, so you will lose quite a bit of money if you don’t damage or lose your phone. It is also possible to get your phone covered by your home contents insurance, so we suggest you do this instead if you have a fairly valuable phone.