When people think about protection insurance, they often assume one of two things –

• “I probably need loads of cover and it’ll be expensive.”
• “I already have something through work, so I’m probably fine.”

The reality is usually somewhere in the middle.

Protection doesn’t need to be complicated and it doesn’t always mean taking out lots of policies you don’t understand. In many cases, it’s simply about making sure the most important areas of your financial life are protected and without paying for cover you don’t really need.

So how do you work out what protection is actually right for you?

Start with the Biggest Financial Risks

A good starting point is to ask yourself – “What would have the biggest financial impact on me or my family?”

For most people, some of the biggest risks are –

• Losing income through illness,
• Leaving family members financially vulnerable,
• Struggling to keep up with mortgage and household bills.

Protection planning is usually about prioritising these risks rather than trying to insure absolutely everything.

Life Insurance – Protecting Family and the Home

Life insurance is designed to provide financial support if you pass away during the policy term.

For many people, the main purpose is straightforward:

• helping family stay in the home
• repaying a mortgage
• replacing lost income
• providing financial security for children or dependents.

However, not everybody needs large amounts of life insurance.

For example:

• someone with no children and no mortgage may need very little cover (if any at all)
• while a family with young children and a large mortgage may need more substantial protection.

The important thing is matching the cover to the actual financial need.

Income Protection – Often Overlooked

One of the biggest misconceptions is that life insurance is the most important policy.

In reality, many people are statistically more likely to need time off work due to illness or injury during their working life than to pass away during the mortgage term.

Income protection is designed to provide a monthly income if you’re unable to work due to ill health.

This can help cover:

• mortgage payments,
• household bills,
• food,
• utilities,
• and general living costs.

Many people assume they already have enough sick pay through work. Sometimes they do, but often this only lasts for a limited period and nowhere near as long as a typical mortgage.

This is why understanding your employer benefits is important before taking additional cover.

Critical Illness Cover – Somewhere in the Middle

Critical illness cover is designed to pay a lump sum if you’re diagnosed with a specified serious illness covered by the policy.

People often use this cover to:

• reduce or repay a mortgage
• fund time away from work
• cover treatment costs,
• provide breathing space financially during recovery.

Some people value this highly for peace of mind, however it’s usually sensible to prioritise income protection. This isn’t an ‘either / or’ decision, as critical illness cover should be taken in addition for those looking for a more comprehensive approach.

Avoiding Duplicate Cover

One of the easiest ways to overpay is by duplicating protection you already have elsewhere.

Some examples include –

• death in service/ income protection benefits through work
• employer sick pay
• existing policies
• savings
• partner income

This doesn’t necessarily mean additional cover isn’t worthwhile. However, it does mean any recommendations should take these existing arrangements into account.

Good protection planning should complement what you already have, not simply duplicate it unnecessarily.

Protection Should Fit Your Budget

A common mistake is assuming protection needs to cover every possible scenario perfectly.

Ideally, you would fully protect yourself and eliminate as much risk as possible. To achieve this, typically a plan would cost around 5% of your net income.

However, if you do not feel comfortable with this, you could reduce the premium by accepting some of the risk. This would mean prioritising accordingly.

In reality, some protection is often better than no protection at all and you can look to build up your protection plan over time as your financial circumstances change.

A sensible plan usually balances:

• affordability
• priorities
• existing benefits,
• long term sustainability.

After all, there’s little point setting up policies that become unaffordable after a short period of time.

The goals are usually –

• Protecting the most important things
• Reducing financial risk
• Improving financial resilience.

For many people, that means –

1. Protecting income
2. Protecting the home
3. Protecting family
4. Making sure plans remain sustainable.

The right solution will look different for everybody.

Final Thoughts

Protection planning doesn’t need to be overwhelming or overly technical.

The key is understanding –

• What risks would affect you most
• What protection you already have
• Where the biggest financial gaps are.

From there, it becomes much easier to build protection that fits your circumstances without paying for unnecessary cover.

If you’d like help reviewing your current arrangements or understanding what options might be suitable for you, please feel free to get in touch.

Information correct at time of writing – May 2026.

Easy Street Financial Services Ltd is authorised and regulated by the Financial Conduct Authority. FCA No. 1013595.