5 Insurances That Can Help To Protect Your Finances Through The Cost-Of-Living Crisis

The UK is currently suffering through a cost-of-living crisis, where rent, bills, food, and more are at an all-time high. In fact, 89% of adults in Great Britain, around 46 million people, report having increased living costs over the past few months, despite cutting back on essentials.  

With money inevitably on our minds, the question remains - is there something we can do to protect our finances? Let’s take a look at five insurances that can help ease the burden and anxieties of the cost-of-living crisis. 

1. Income protection insurance

With the cost-of-living crisis, many have found themselves living paycheck to paycheck. So, if this income were to disappear, such as by falling ill, this might lead to serious financial trouble, which is an understandable and valid anxiety during such trying times. 

Group income protection insurance will pay out monthly sums to employees who are off work long-term for sickness or illness. Though you will probably be eligible for statutory sick pay to begin with, this is only available for 28 weeks. Thus, income protection insurance will effectively continue payments after those 28 weeks, so you can focus on getting better rather than worrying about money. 

2. Life insurance

Life insurance will pay a lump sum to your dependents in the case of your untimely passing. This will ensure that your loved ones are financially protected if you were to sadly die, which is even more important during such financial instability. 

3. Vision and dental cover

Eye tests and new glasses can be expensive, even though it is an essential part of our lives. The same can be said for trips to the dentist, especially if you can’t access a dentist surgery that has NHS dentists. In some cases, going to the optician or dentist is an emergency, so it can’t be avoided - but it can equally be a lot to pay out of pocket. 

To make sure your optician and dentist trips are not extortionate, or so expensive you avoid going altogether, look into vision and dental cover. If you already have health insurance, you might be able to simply add it as a bolt-on to your existing policy. 

4. Critical illness cover

If you were to fall critically ill, and thus need to adapt your home, have attentive care, and still need to have the funds to live on, critical illness cover can help. It will pay out a lump sum that will give financial support towards the cost of living and other costs dictated by the illness at hand. 

5. Mental health cover

Many studies have found that the cost-of-living crisis has been, and will continue to be, harmful to the mental health of our population. This is because financial insecurity has real-world implications, which can lead to anxieties over being able to provide for oneself and one’s family. 

Thus, even if you have all the financial insurances listed above, it is important to make sure you have mental health cover too. Though mental health services are free on the NHS, they typically have extremely long waiting lists, and it goes without saying that forking out for expensive private therapists won’t exactly ease financial burdens or worries. 

And there you have it - five types of insurance that can take a weight off your mind during this time by protecting your finances.

[ymal]