Once you’ve got your emergency savings fund in place, think about future-proofing your income to ensure you’re protected if the worst were to happen.
There are different types of insurance cover you can take out to protect your income, health, mortgage, loan payments or people who depend on you.
The main thing is to decide what protection you need and weigh up the risks and benefits of protection insurance against the cost and coverage. It’s up to you to decide what’s important and how you’ll protect it.
The first step is to set yourself a goal. What or who do you need to protect most? This could be providing for your children, covering your mortgage payments, or simply your earnings.
Next, consider what protection you already have. For example, if you’re employed you might have a benefits package that includes a form of life insurance, or income protection for a set period should you find yourself not able to work due to illness or injury.
Finally, work out what protection insurance you want, based on the cover you already have and who or what you want to protect.
To find out more, see our section on Insurance, which takes you through the different types of cover and how to choose the right policy for you.