Whatever stage you’re at on your financial journey it pays to protect what you’ve worked hard for. From protecting your income or ensuring your mortgage is paid, to private medical insurance and life cover: it’s time to be savvy about financial protection.

With many household incomes stretched to breaking point, paying for something that might not happen isn’t top of the essentials list. However, this potentially leaves your dependants with no income and no home.

Most people are aware they should protect themselves from life’s unexpected events and if acted on this usually means taking out some kind of life cover. There is a variety of products available in terms of life protection, critical illness, and income protection cover that can be applied to different personal circumstances – mortgage protection can also be added.

Life cover policies generally pay out on death or terminal illness and can be level term or decreasing term. Level term means the amount for which you’re covered remains the same throughout the term; the premiums usually remain the same too. With a decreasing term policy the amount you’re covered for decreases over the term of the policy and premiums can be cheaper than those for level term.

Family income benefit provides a regular monthly income for your family, rather than a lump sum, should you die. This is a much more practical solution as it helps the recipients with budgeting – and the policy can be cheaper than those that pay out a lump sum.

So what happens if you fall ill or are injured and can’t work for a period of time?

Income protection is key for everyone. Not paid on death, it can replace some of your income should you be unable to work owing to illness or injury. With many people leaving themselves no room for financial maneuver, loss of income can be devastating.

Critical illness cover pays a tax-free lump sum if you’re diagnosed with one of the serious illnesses covered by your policy. This can be added to a mortgage protection policy to ensure your mortgage is paid off not only if you die but also if diagnosed with a serious illness. It’s designed to pay off your debts, fund medical treatment or allow a change of lifestyle.

It is possible to tailor your protection needs to suit your circumstances but it is a confusing landscape. Having no cover is one thing but you don’t want to end up with too much cover or the wrong type so it’s always a good idea to get qualified advice.