Find out more about life insurance and private health insurance - plus take advantage of our member-exclusive offer

None of us want to dwell on something bad happening, whether that's with our health or with our lives. Find out more about how life insurance and private health insurance may help protect you and your loved ones.

If you're a Which? member, you could save money when taking out a protection policy with LifeSearch.

From 15 May to 18 June, if you're a Which? member and take out a policy with LifeSearch, you will receive a £50 John Lewis voucher.

Offer ends 18 June. The policy must be active for 90 days before gift card is issued. Ts&Cs apply.

We look at the different policies and how they may protect you.

• Find out more: best life insurance UK

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Life insurance

How does it work?

Life insurance is a broad term for a range of different policies, all of which are designed to pay out if you die. Generally, you pay a monthly fee, also known as a premium, for the policy.

According to the latest HL Savings & Resilience Barometer, only four in 10 people have enough protection to cover their dependents.

There are three main types of life insurance:

• Whole-of-life insurance is designed to pay out whenever you die, as long as you have continued to pay the premiums.
• Term life insurance is where you decide a set 'term' that you want to be covered for, such as until your mortgage is paid off or your children go to university. This policy is generally cheaper than whole-of-life and paid in a lump sum.
• Family income benefit is also set as a term, however, your family will receive the payout as a regular income rather than a lump sum.

Find out more about the different types of life insurance and how they work. 

Private health insurance

How does it work?

At its most basic, private health insurance pays for private medical treatment. There are caveats and premiums can vary greatly depending on your age and health.

One in five patients had paid for private treatment in the past two years, out of 14,821 Which? members we surveyed in June 2023.

Covering the cost of private medical treatments out of your own pocket can be challenging. For example, a hip replacement might set you back more than £13,000, and cataract surgery can cost about £2,800 per eye.

Health insurance offers an alternative by helping you avoid these large one-off expenses. Instead, you pay a smaller annual premium, regardless of whether you make a claim.

However, if you rarely need treatment or are happy to rely on the NHS when you do, private insurance may not provide good value for you.

Read our guide on the best private health insurance providers in the UK.

Income protection insurance

How does it work?

No one likes to think about becoming seriously ill, but income protection insurance can provide crucial financial support if an illness or injury leaves you unable to work for an extended period.

With limited state benefits and no statutory sick pay for the self-employed, most working-age individuals should consider income protection, if it fits within their budget.

It's important to note that neither income protection nor short-term income protection covers redundancy. However, they often include support to help you return to work after illness. Keep in mind, income protection is not the same as life insurance, which only pays out in the event of your death.

Find out more about income protection insurance and how it compares to redundancy insurance.

Critical illness cover

How does it work?

A diagnosis of a critical illness or a serious injury can seriously disrupt your finances, especially if you need extended time off work for treatment and recovery.

Critical illness insurance is designed to ease that burden by providing a lump sum payout if you're diagnosed with a condition specified in your policy.

This type of cover differs from income protection insurance, which replaces a portion of your income during periods you're unable to work, and from life insurance, which pays out to your loved ones in the event of your death.

Find out more about critical illness cover.