There are many different types of insurance policy designed to cover the risks that we face in day-to-day life. The following are the most common types of life and health policy that you may need.

Term Life - pays out if you die within a specified period, can be used to repay a mortgage or a loan. Can also be used to provide cover to ensure your dependents are financially stable in event of your death during the term.

Mortgage Protection - pays out if you die within a specified period. The amount of cover reduces in line with a chosen interest rate associated with your mortgage.

Critical Illness - pays out in the event of some life threatening illness such as stroke or cancer. A critical illness policy can be standalone or added to level term or mortgage protection.

Whole Life - pays out whenever you die so it is not linked to any term and therefore is usually more expensive.

Mortgage Payment Protection Insurance (MPPI) - should not be confused with mortgage protection already described. This cover is designed to ensure you can continue to pay your mortgage and other related expenses for short periods if you are unable to work through accident, sickness or unemployment.

Creditor Insurance - sometimes called ASU (accident, sickness and unemployment), pays out in similar circumstances as MPPI but is not necessarily associated with a mortgage.

Income Protection Insurance - also called permanent health insurance. Replaces part of your regular income if you are unable to work because of long-term illness or disability. Payments continue until you are fit to return to work, or until the policy ends, generally at retirement age.