6.4 How to Build an All-in-One Protection Plan for Home, Health & Income

Get the right mix of insurance at the right price to prevent life from pulling you back into the money trap

How to shield your freedom without overpaying for peace of mind.

You don’t insure your house from all the possible things that could happen to it.
You insure it from the worst things that could happen.

It’s the same with your financial life.
You don’t need to protect against every possible risk.
You just need to guard against the ones that could drag you back into the trap.

Most people can’t afford full protection for every scenario - and they don’t need to.
The goal isn’t perfect coverage.
The goal is resilience.

The right mix of insurance isn’t about fear. It’s about freedom.
It buys you time. Stability. Options.
So that one bad moment doesn’t undo years of good decisions.

The cover that best suits you will depend on your age and commitments. You might not need as much insurance as others.

And as life changes, so will your insurance needs.

Let’s look at some common cases of what to insure against, and when.

Single people, no children

Being alone doesn’t mean you’re invincible. It just means the risks shift inward - from legacy to survival.

• Income protection insurance will keep you going if you can’t work

• critical illness cover with a deferred period matching your emergency fund and employer sickness benefits, covering a few years of living costs or mortgage payments will cover you for that period

Couples with no children

Being in a couple now means twice the risk. But it may not mean twice the insurance cost:

• Life insurance to cover large debts and a mortgage would be a huge benefit to the survivor

• Income protection insurance against at least the larger of the 2 salaries in the family will cover the bigger earner, and the bigger salary

• Optional critical illness insurance to cover any large debts or a few years of mortgage payments would be a useful cushion, should one of you fall ill

Couples with young children

Helping your children escape the money trap sooner than you could be the best gift you ever give them, without them even realising it.

• life insurance with family income benefit (regular payments rather than a lump sum) is a safe option

• this could last until the children are 18, with maybe a lump sum payment afterwards.

Couples with grown up children

• Now income protection becomes more important to protect income in your more vulnerable years.

• Life cover for both parties to pay off any remaining debts and mortgages is a smart call.

Protection for your protection

Mortgages, bills, inflation and life don’t stop when you get ill. And neither do insurance premiums And that’s where waiver of premium comes in.

Waiver of premium allows you to suspend all insurance premiums if you are unable to work. It’s the release valve that might take just enough pressure off your wallet, right when you need it. Look for policies that include this.

Keep Records, and Review Regularly

• Keep records of all the policies you have in a safe place. Somewhere that’s easy to find

• Review regularly. When you move to different life stages, you can change your plan to suit.

Recap: Protect What Matters Most

• You can’t insure against everything — and you don’t need to.
  Insurance exists to stop one bad moment from undoing years of good work.

• The right cover depends on your stage of life, your income, and the people who rely on you.
  What matters now may not matter forever. Review and adjust as life changes.

• Life insurance protects those you leave behind.
  Income protection protects the life you're still living.

• Add waiver of premium where you can — it’s a small feature that makes a big difference when things get tight.

• Keep your policies organised and visible.
  The best plan in the world is useless if no one can find it.

Up Next: Wills

You’ve escaped the money trap. Now leave a legacy - and close the door on it for good.

---

Disclaimer: This content is for informational and educational purposes only. It does not constitute personal financial advice. Everyone’s situation is different — if in doubt, speak to a qualified, regulated financial adviser.