| As one of life's essential financial | | | | may come under the umbrella of |
| products for consumers, insurance - | | | | investment-type life insurance. |
| whether it's home insurance, travel | | | | Home insurance is another crucial part |
| insurance or life insurance - can be | | | | of making sure your life is adequately |
| overwhelming. After all, in today's | | | | protected. Whether you choose to take |
| diverse financial market there is a vast | | | | out buildings insurance, contents |
| variety of insurance products for | | | | insurance or both, home insurance can |
| consumers to choose from. However, | | | | make a vital difference to your peace of |
| before you make your choice, it's vital | | | | mind. Over the winter months in |
| to be aware of the options that face you | | | | particular, home insurance is especially |
| and to shop around for the insurance | | | | important. For example, only last month, |
| that best suits you. | | | | Halifax Home Insurance suggested that |
| Perhaps the two most essential types of | | | | homeowners might be threatened by the |
| insurance are life insurance and home | | | | possibility of burst pipes during the |
| insurance. Choosing life insurance can | | | | recent cold snap experiences across |
| be a particularly overwhelming | | | | Britain. |
| experience, so it's important to equip | | | | According to Vicky Emmott, a |
| yourself with the available knowledge | | | | spokesperson for Halifax Home insurance: |
| before making a decision. For instance, | | | | "Water from a burst pipe within a loft |
| you need to choose whether you're going | | | | space can very quickly cause damage to |
| to invest in "protection-only" life | | | | plaster ceilings, wall plaster, kitchen |
| insurance or "investment-type" life | | | | units, electrical wiring and |
| insurance. | | | | decoration..." |
| Protection-only life insurance will | | | | With many home insurance companies and |
| cover you over a specified amount of | | | | high street banks, including Barclays, |
| time; however, if your death occurs | | | | offering a 24-hour claims helpline and |
| after this designated period has passed, | | | | add-ons, such as legal expenses and home |
| then your family won't receive any | | | | emergency cover, there's no reason for |
| payment. | | | | consumers not to take out home insurance |
| Conversely, investment-type life | | | | to cover any possible damage to their |
| insurance - also known as whole of life | | | | home or home contents. |
| policies or endowment policies - will | | | | But whatever type of insurance you're |
| not only pay out in the event of your | | | | hoping to buy, make sure you consider |
| death, but will also accumulate in value | | | | all your options carefully before making |
| during your lifetime. Hence, the younger | | | | your final decision. This way, you'll be |
| you are when you choose to take out | | | | sure that your insurance covers aspects |
| investment-type life insurance, the | | | | of your life that need the most |
| greater the value it will accrue during | | | | attention, and your long-term benefit |
| your life. Many personal pension | | | | will be maximised. Andrew Regan is |
| schemes, including stakeholder schemes, | | | | an online, freelance journalist. |