life insurance.

Protection-only life will cover you over a specified amount of time; however, if your death occurs after this designated period has passed, then your family won't receive any payment.

Conversely, investment-type life insurance - also known as whole of life policies or endowment policies - will not only pay out in the event of your death, but will also accumulate in value during your lifetime. Hence, the younger you are when you choose to take out investment-type life insurance, the greater the value it will accrue during your life. Many personal pension schemes, including stakeholder schemes, may come under the umbrella of investment-type life insurance.

Home insurance is another crucial part of making sure your life is adequately protected. Whether you choose to take out buildings insurance, contents or both, home can make a vital difference to your peace of mind. Over the winter months in particular, home is especially important. For example, only last month, Halifax Home suggested that homeowners might be threatened by the possibility of burst pipes during the recent cold snap experiences across Britain.

According to Vicky Emmott, a spokesperson for Halifax Home insurance: "Water from a burst pipe within a loft space can very quickly cause damage to plaster ceilings, wall plaster, kitchen units, electrical wiring and decoration..."

With many home companies and high street banks, including Barclays, offering a 24-hour claims helpline and add-ons, such as legal expenses and home emergency cover, there's no reason for consumers not to take out home to cover any possible damage to their home or home contents.

But whatever type of you're hoping to buy, make sure you consider all your options carefully before making your final decision. This way, you'll be sure that your covers aspects of your life that need the most attention, and your long-term benefit will be maximised. Andrew Regan is an online, freelance journalist.


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