For pet owners who do not have this insurance, these unexpected bills can easily swell their monthly expenditure to breaking point. Rather than face these unexpected bills many pet owners are now preferring to protect their finances and pets by taking out insurance to cover them. To help you understand a little more about this kind of insurance we will briefly explain the basics you will normally find in the average pet insurance policy and how to save on them.

The four most important things to consider when choosing pet insurance are:
1. Medical benefits – Taking out a policy with sufficient medical benefit is vital. Always check the policy details and the limit of medical fees you’re actually covered for.
2. Limitations – Some pet insurance will have limitations written in the small print. These can quite often include time limits on when you can claim. 3. Life Long Cover – Look for pet insurance that you can renew year after year, even in the event of you making several claims. Some pet insurance will allow cover for life while others may stipulate a maximum age of 8- 10 years.
4. Liability – As with all insurance policies there are usually a number of differences to be found between the various insurance companies.You will generally find, though, that most insurers will offer some kind of liability in their pet insurance that protects you in cases where your pet has caused damage to property or, worse still, another person.

When you get to the point of having identified the extent of the insurance you require, where do you go to obtain cover?  Not surprisingly, the UK has a wide range of pet insurance providers, including well known direct brands like Churchill and Directline where you can click through for quotes below.

Finally, pet insurance doesn’t just cover vets’ bills, it also offers a range of payments designed to assist with the unexpected financial implications of owning an animal, such as:Travel related issues – vets’ bills while travelling, transportation of your pet if it becomes ill, theft or straying during the journey and subsequent quarantine fees.

• A lump sum if your pet dies following an accident.
• The cost of a holiday cancellation due to your pet being ill.
• Advertising and reward costs if your pet is lost or stolen.
• A lump sum if your pet is irretrievably lost or stolen.
• Kennel costs if you are unexpectedly unable to look after your pet (for example, if you go into hospital).

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In 1983 when the first insurance policies were sold they only provided cover against the four most dreaded events of cancer, heart attacks, strokes and by passes (Policies have been known as “dread disease” and “critical illness”, with many companies still using this last description.). Since then we have seen an explosion of cover for up to 154 different conditions ranging from Alzheimers to tunnel vision.

As the name suggests cover can be bought to provide protection against a variety of diseases and conditions which although not always life threatening, can seriously impair your quality of life, and even worse your ability to carry on working. What happens when an event occurs or you are diagnosed with a serious illness will vary from policy to policy, but generally the cover is provided to help pay for all the things that you have to carry on paying for when you are ill, whether that’s as simple as day to day outgoings, adapting your home to cater for a disability, through to paying the mortgage.

Actually, being able to carry on paying a mortgage is one of the things that has been thought about most by companies that provide insurance, leading to them developing policies which are bought on their own, or which “bolt onto” any life insurance you take out to repay the mortgage in the event of your death. Some policies are structured to repay some of the mortgage on diagnosis of a condition, whilst others pay the full amount immediately with no further payment later.

Whilst some of us will be fortunate enough to have this insurance provided through their employer, for many looking into serious illness insurance cover should be a sensible part of their personal finance arrangements. Serious illness cover is unusual because it can provide useful cover whether or not you have any dependants.

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Small medical expenses don’t seem too bad by themselves, but regular dental check-ups and buying a pair of glasses can quickly add up. Health cash plans are designed to give you money towards optical, dental and other treatments without forcing you to fork out for expensive insurance premiums, potentially saving money as a result.

It is really a way of budgeting each month for medical and healthcare expenses. You pay money in every month and then if you have a treatment for something or have to go to hospital, you get a cash “rebate”.It may sound a bit like the better known Private Medical Insurance (PMI) except it is generally cheaper and you are pretty much guaranteed to get at least some, if not all of your money back by the end of the year.

However, it is important to appreciate that health cash plans do not care for your health in the same way as PMI:

• Instead of covering the costs of private healthcare in case you need big operations or specialist consultations, health cash plans aim to alleviate all your non-NHS bills and help you maintain your health to avoid the need for big operations.
• They cover treatments which would not be covered by PMI.
• To become a member of a plan, you do not have to undergo any medical examinations and your premiums are not related to the condition of your health.

However, just like PMI, a health cash plan does have limits on how much it will contribute to your costs.  First of all, each benefit states the percentage of the costs that it will cover. For example for opticians and dental costs it is often 100%. But for other it might only cover 75% of costs. Secondly, each benefit also has a maximum annual payout depending on how much you pay a month. For example, if the limit for optical care was £75 a year, then the company will pay your first £75 of optical care claims that year. After that you will have to foot the bill yourself.

The majority of health cash plan providers are charitable or non-profit organizations and as a result, payments are often cheaper and claiming is easier. Joining these schemes is also very easy, you can either apply online or download a printable registration form which you then fill out and send off to the company. You will be asked for some details and medical history as some of the providers will not cover any pre-existing conditions you have.

Finally, as with other financial plans you just need to be careful to check the terms and conditions of these plans to see if they are going to be suitable for your needs. Read these carefully before you proceed.

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Thousands of people have lost their jobs since the downturn turned into a recession. The number of unemployed hit an 11-year high of 1.92 million as 2009 began and is expected to increase further in the coming year – prompting many of us to look for ways to protect against the consequences of suddenly finding ourselves out of work.

So, could taking out unemployment cover provide a financial cushion to fall back on? These specialist policies, which usually pay out for up to 12 months after you have been made (involuntarily) redundant, have surged in popularity recently.

Although few statistics exist to help gauge either the number of policies sold or claims made, industry observers insist there has been a dramatic increase in this area of insurance, and they expect the trend to continue over the coming months.

Matt Morris, spokesperson for broker LifeSearch, says: “Unemployment cover has become a highly sought-after form of protection over the past six to eight months.”

According to research from the Post Office, most of us would need nearly £300 a week to support ourselves if we lost our job. Yet 40% of us have less than one month’s salary set aside and more than 70% have no unemployment cover. In addition, 75% of us are unaware of what we would be.

What are the options?

There are various ways to buy cover and each type of policy comes with its own list of conditions. Similar policies from rival providers often differ in their list of exclusions: the period before a claim can be made could differ, or the length of time they will continue to make payments.

You can choose from three different types of cover: standalone unemployment cover; as part of a payment protection insurance package (usually sold alongside loans and mortgages); or as an add-on to an income protection plan.

1. Standalone unemployment cover

If cost is a concern or you neither need nor want sickness cover, then standalone unemployment cover could be the best option. Andy Gadd, head of research at Lighthouse Group, says: “The premiums are likely to be lower if you’re buying unemployment protection on its own rather than as part of a protection package.”

The price will be about £17 a month for cover worth £500 a month. This will usually be paid out for up to 12 months, with the first payment arriving 30, 60 or 180 days after you make a claim – the longer the waiting period, the cheaper your monthly premium will be.

However, Emma Walker, head of protection at comparison website moneysupermarket.com, warns that only a dwindling number of insurance companies, such as British Insurance and the Post Office, still offer such policies. “If you only want unemployment cover, you need to buy it now as it might not be around for much longer,” she says.

2. Payment protection insurance

In most cases, unemployment cover is part of a package known as PPI, which also guards against the effects of accident and sickness on your income. Such policies will cover your mortgage repayments and loans. As with standalone cover, most people are eligible to apply – age, gender and health are not important factors.

Premiums vary between companies, but expect to pay between £10 and £50 a month for cover worth £500 a month. Policies usually kick in one month after your income ceases and payments will continue for a set period, usually one year, sometimes two.

The idea of the policy is to provide short-term assistance, but you need to be aware of the limitations and exclusions. In many cases, you will need to have been continuously employed on a permanent contract by the same company for at least a year to qualify under the unemployment element of the policy.

You should also be aware that a policy won’t pay out in the first three months after you sign up. So, unless you’ve been with your current employer for at least nine months, there’s no point applying for this type of cover.

Mortgage payment protection and short-term income protection work in the same way. As with PPI, these often come with health warnings and for good reason: they are notoriously full of exclusions. 

A staggering 10,652 new complaints about PPI were lodged with the Financial Ombudsman Service in the year ending 31 March 2008 – up from 1,832 the previous year. A significant number of these concerned the way these policies operate. Sharon Brately, chartered financial planner at fairinvestment.co.uk, says: “Bad practice has been rife in the PPI market for years.”

3. Income protection

Another way you can purchase unemployment cover is as a bolt-on addition when you buy an income protection policy.

Income protection insurance is designed to replace your income if you’re unable to work for more than a specified period because of illness, accident or, in some cases, unemployment. As with standalone cover, there’s usually a deferment period before the payment kicks in – again, the longer you agree to wait, the lower your premiums.

A 30-year-old who wants £800-a-month cover could expect to pay anything from £6 a month for the most basic cover to £21 for the bolt-on unemployment cover. Once payments start, they continue for up to 12 months. On top of that, income protection will also pay out for conditions not covered under critical illness plans, such as back pain and stress.

On the negative side, however, the application for an income protection policy is usually more complex than it is for standalone unemployment insurance or PPI because of the increased level of cover on offer.

What’s best for you?

The sort of policy that is most suitable for you depends on your personal circumstances – for example, whether you have any policies or how much protection is offered by your employer.

“You may work for a company that offers a great redundancy package, but it’s still worth considering the worst-case scenario,” advises Walker. “Look at how much you need and how long you could last before receiving the first of your payments, as policies are generally cheaper the longer you agree to wait before claiming.”

If, for example, you have critical illness or income protection cover, it’s worth seeing if you can add unemployment cover for a nominal charge. Failing that, your insurer may be able to offer you a more inclusive policy.

Next, you need to decide how much cover you require. To give yourself an idea, work out how much you would need to sustain your standard of living each month and then simply multiply that number by 12 to estimate your annual requirement. However, you won’t be able to insure your total income as an upper limit of 50% of your gross income – or £2,000 a month – usually applies. The benefits will be paid out tax-free.

When buying a policy, it’s advisable to shop around. If you’re buying the cover alongside income protection, it also pays to buy it sooner rather than later because the premiums will increase as you age.

Also, once you’ve bought a policy you can’t just forget about it. You need to revisit your original decision at least once a year to ensure the cover is still sufficient for your needs, particularly if your circumstances have changed. Many policies have reviewable rates, which mean the cost of the premium is not guaranteed to remain the same.

Once you’ve chosen a policy, there are other things you need to consider. When you’re discussing a policy with a provider be honest. Don’t hide the fact that your company has talked about cutbacks, for example. It could make you ineligible for a payout.

Also, ask to see a detailed guide to the cover offered and key features document, setting out the policy’s benefits and exclusions. You should study the exclusion and limitation clauses in detail to ensure you’ll actually be eligible to claim.

Peter Chadborn, principal at IFA CBK Colchester, warns that some policies can be misleading and expensive as well as failing to pay out when expected. “There will be lots of caveats so you really need to read the small print carefully before buying the cover or you might find the policy worthless when it comes to claiming.”

Regardless of whether or not you decide to take out unemployment cover, there are some simple measures you can take to safeguard against financial difficulties if you lose your job. “

You should put aside the equivalent of three months’ salary to protect your family should you face redundancy,” recommends Geoff Penrice, a financial adviser at Bates Investment Services. “This will help buy you some time in which to find an alternative source of income.”

A cash ISA or a straightforward savings account would be an ideal place. Just make sure you can get your hands on it quickly and easily if and when you need it.

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Consumers need to think of travel insurance as something they should tailor to their own needs, rather than an off-the-shelf product, says The Daily Telegraph. So one of the simplest ways of reducing the premium is to look carefully at the level of cover you are being offered and then decide whether you actually need it all within the policy. For example, if you are travelling to Europe, opt for European cover rather than worldwide cover, as the latter includes America, where litigation and medical costs can push up the cost of cover. Also, consider covering personal possessions under your home insurance – and, as always, shop around for the best deal.

Eat your greens. Food inflation is forcing the weekly shopping bill to new heights, but broccoli is proving the exception, says The Guardian. It is one of the few vegetables that is falling in price, due to plentiful current supplies. The average price is now £1.38 per kilo – down 27% from this time last year. So stock up on broccoli. But forget the cheese sauce. Cheddar prices rose 10% last week alone, according to The Grocer.

Choose your pets carefully. A Great Dane will cost its owner an average of £669.64 in damages over a lifetime, says eSure, and small dogs aren’t much better. Chihuahuas cause an average carnage bill of £638.41 during their lives. Add in medical bills and food, and dogs are expensive members of the family. But there are ways to cut the costs.

Save on vet’s bills. If you haven’t bought a dog yet, then opt for a mongrel. “They tend to be less prone to disease and cheaper to insure,” says Ali Taylor from Battersea Dogs & Cats Home in The Independent on Sunday. What if you already have a pet? You could consider pet insurance to cover emergency vet bills, but do shop around and check the small print carefully: pet insurance is notorious for exclusions based on age and other factors. A better route is prevention – take your dog for regular walks and cut back on the treats. A healthy, fit canine is far less likely to get ill than a fat one.

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