You can’t stop things from happening, but you can reduce the financial burden on yourself in the event that something does happen and in doing so, you or your loved ones will not suffer the full cost of the loss.

Insurance protects you and the things that you value from life’s big and little mishaps which have a financial impact. The most common reasons why people buy insurance are:

• To protect something you have, which would be expensive to replace e.g., house, car, boat, caravan personal belongings. There may have been a loan attached to the purchase of some of these items. Mortgage lenders insist on a homeowner having insurance as they need to know you (and they) are protected against damage or loss
•  To protect you and your vehicle in the event an accident occurs. This would result in expenses to repair or replace the vehicle and / or to fund health care and any legal costs if there is an accident, collision, or injury as a result of your driving
•  To protect you when you are unwell so that the costs of treatment like hospital and dental care and the costs of prescription drugs and any other treatments are covered or reimbursed
•  To maintain your current standard of living as this type of insurance will cover your day-to-day expenses whilst you focus on becoming well
•  To provide for your family in the event of your death. These policies help your family to pay for funeral expenses along with short- and long-term expenses such as a mortgage or other loan repayments
•  To protect you when you are doing something that your normal insurance doesn’t cover e.g., travel insurance, climbing mountains, taking part in sports. This type of insurance takes the worry away for many things such as having to fund emergency medical expenses whilst on holiday, having your flights cancelled or loss of money, travel documents including your passport, cameras, luggage
•  To protect you from being sued if you are found liable for any injuries or damage or loss to other people or their property which occurs on your (the policyholders) property. This is especially important if you run a business