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