How much does protection insurance cost?

Depending on your circumstances – your lifestyle, earnings, whether you have a family – protection insurance can provide an income should you become unable to work through accident or illness.

There are a number of different insurance products out there, each designed for people in different circumstances.

For example, someone in their 20’s with no mortgage or children, won’t have the same needs as someone in their 30’s with a home, a family and a larger income.

Monthly payments, known as premiums, vary greatly but can start at a few pounds a month for basic policies.

This guide can help you work out what factors will affect the cost of an insurance policy and which product is right for you.

There is no one size fits all and your monthly payments (also known as premiums) will depend on a number factors, including:

  • Age
  • Marital status
  • Whether you smoke or have previously smoked
  • Lifestyle (do you, for example, practice extreme sports?)
  • Health (your current health, your weight, your family medical history)
  • Job (some professions carry a higher risk than others and might mean you have to pay more each month)

How much cover you might need will depend on:

  • Take home pay
  • Day to day living costs
  • Debts
  • Mortgage/rent

It is useful to weigh up the costs of a policy against the risks of being uninsured.

For example, how much would you lose if you became ill and found yourself unable to work? How would you cover your essential costs?