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medical insurance covers you for in-patient hospital care and out-patient care if you become sick. Some policies also cover extras such as osteopathy or dental fees. Policies differ greatly - so shop around and read the fine print.
- critical illness insurance pays out a tax free lump sum on the diagnosis of specified life-threatening ailments - cancer, heart attack etc.
- term assurance is a form of life assurance general sold to pay off a mortgage or provide a lump sum for a spouse if you die.
- permanent health insurance replaces your income if you cannot work through illness or disability. It is similar to critical illness insurance - but pays a monthly sum.
- mortgage protection insurance is designed to meet monthly mortgage bills if borrowers have to stop work because of unemployment, accident, or sickness. If you lose your job or become disabled the government will not cover your mortgage for the first nine months. But many policies exclude self-employed people and have limited payout periods - making them worthless to many borrowers. Only six percent of employers offer full income protection insurance and few give full pay once you have been off sick for more than six months.
- long-term care insurance covers the cost of residential long-term care or home care if you're not able to look after yourself any more. Without it, many people find their savings eaten up by care bills.
