9 Types of Insurance Worth Having (and 5 that are not)

Insurance can be a powerful safety net, protecting your finances when they need to be protected the most, for sure, but it can also be a huge waste of money too, if you take out an insurance policy that you really don’t need.

To help you keep your finances in shape, then, we are going to take a look at 9 types of insurance it’s worth having and 5 that it probably isn’t, below. 

9 Types of Insurance Worth Having

1. Home Insurance (Buildings and Contents)

If you own a home, buildings insurance is essential, and contents insurance protects your belongings from theft, fire, or damage. Together,  they form the backbone of household financial protection.

2. Car Insurance

Car insurance is a legal requirement in the UK. Apart from meeting the law, comprehensive cover can save you from major repair or replacement costs after an accident.

3. Life Insurance

Life insurance is particularly important if others depend on your income. It can help cover living costs, mortgage payments, or childcare expenses if you’re no longer around to provide for your family.

4. Income Protection Insurance

If illness or injury prevents you from working, income protection can replace a portion of your earnings. This is often overlooked but can be one of the most valuable policies for working households.

5. Critical Illness Cover

This type of insurance pays out a lump sum if you’re diagnosed with a serious illness. It can help cover treatment costs, adapt your home, or reduce financial pressure during recovery.

6. Private Health Insurance

While the NHS provides excellent care, private health insurance can offer faster access to certain treatments and specialist services, which many people find reassuring.

7. Travel Insurance

Travel insurance is essential for trips abroad and often worthwhile even for UK travel. Medical emergencies, cancellations, or lost luggage can be costly without cover.

8. Funeral Insurance

Funeral insurance can help cover funeral costs and reduce the financial burden on loved ones. For some people, particularly those who want certainty around end-of-life expenses, this can provide valuable peace of mind.

9. Pet Insurance

Vet bills can be surprisingly expensive. Pet insurance can help ensure your animal gets the care it needs without forcing difficult financial decisions.

5 Types of Insurance That Often Aren’t Worth It

1. Extended Warranties

These are frequently overpriced and offer limited protection compared to consumer rights or manufacturer guarantees.

2. Gadget Insurance (in some cases)

Standalone gadget policies can be costly. For many people, home contents insurance already provides adequate cover.

3. Flight Delay Insurance

Delays are often covered by airlines or travel insurance, making separate policies unnecessary.

4. Credit Card Insurance Add-Ons

These are often expensive and less comprehensive than independent policies.

5. Overlapping Cover

Paying twice for the same protection, such as multiple policies covering the same risk, is rarely good value.

When it comes to insurance, balance is so important. You want ot make sure you re coveted ofr the things that really are a risk, but you do not want to be throwing money away on things that you are not really going to need.

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Becky

Meet the award-nominated UK lifestyle blogger behind Spirited Puddle Jumper – a mum of three living in South East London! Becky shares the real ups and downs of family life, parenting tips, and lifestyle inspiration, proving that being a mum doesn’t mean you stop being fun or having other interests! Follow along for honest insights into UK family life and opinions on a whole range of topics, from travel and food, to beauty reviews, home and DIY, business and health and wellness.