What is personal insurance and why would you need it? | finder.com
Are you covered?

3 personal insurance options that can protect you and your loved ones

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

What types of personal insurance are available?

Personal insurance is a type of coverage that provides financial security for you and your family in the event of a serious injury, illness, loss of ability to earn, disability or death. This insurance lets you maintain your way of living by providing payment to help pay any outstanding debts or everyday expenses.

The three common types of personal insurance include:

  • Life insurance. This is designed to pay out your beneficiaries a lump sum if you pass away.
  • Critical illness insurance. This provides you with a lump sum if you suffer a serious injury or illness as defined the policy.
  • Disability insurance. This type of policy provides you with a lump sum if you’re injured or fall ill and are unable to work.

The easy way to compare and buy life insurance

Get a free quote from more than a dozen term life insurance companies.

  • Find the right amount of coverage that you need.
  • Compare prices from over a dozen companies.
  • Free online access to experts.
  • Already helped over 4.5 million people shop for insurance.

    The three common types of personal insurance coverage

    They may have similar features and benefits, but they have all been designed for one purpose — to give you peace of mind and protection.

    They can be purchased separately or as a package depending on your needs and the risks you are exposed to.

    1. Life Insurance

    Life insurance is one of the oldest types of insurance in existence. It was also the first to be made readily available to the general public. There are two types of life insurance; whole life and term life.

    Learn more about how life insurance works

    2. Critical illness

    Critical Illness insurance pays you a lump sum upon the diagnosis of a traumatic medical event such as heart disease, cancer or stroke. This type of insurance provides an alternative source of funding to your financial commitments, so that you can focus on getting better.

    Learn more about how critical illness insurance works

    3. Disability insurance

    Disability can provides a lump sum payment to help you cover expenses when it’s likely you’ll be out of work due to disability, serious illness or injury. This lump sum benefit can be used by you and your family to:

    Was this content helpful to you? No  Yes

    Ask an Expert

    You are about to post a question on finder.com:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

    By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

    Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
    Go to site