Insurance

By the same token that protecting your family is important, one should consider the implications of not being able to work due to accident or illness. Entitlements to Statutory Sick Pay and Incapacity Benefit can be meagre in comparison with a normal salary and not all employers offer comprehensive sick pay arrangements.

For 2007/8 Incapacity Benefit (long term rate) stands at £81.35 per week. If your mortgage payments and other household expenses exceed this amount, you should consider the various forms of income protection insurance designed to provide a replacement income should you become unable to work due to accident or sickness.

Private medical insurance provides private healthcare should you become ill, and there are various levels of cover.

These are complex products and you should be wary of taking out a policy without first talking through your requirements with an Independent Financial Advisor.