Types of Insurance
We provide a brief outline of the types of insurance here, but if you'd like more information, see our Product news section or the Association of British Insurers' (ABI) Information zone website. The ABI represents the interests of the UK's insurance industry and provides information for consumers and firms.
We regulate most sales of pure protection and general insurance.
What are pure protection and general insurance?
Pure protection insurance includes:
- term assurance (life insurance);
- critical illness insurance;
- income protection insurance; and
- payment protection insurance – includes elements of pure protection and general insurance.
General insurance includes:
- household insurance;
- health cover
Get the facts
Insurance differs in what it covers and what it doesn't (the exclusions). Read the key policy information that the insurance company will give you to find out exactly what you're getting and use it to shop around and compare other policies.
Whatever type of insurance you decide to take out, always:
- ensure the firm is authorised by us to sell insurance.
- disclose the full facts when applying for insurance – if you don't, you could invalidate your policy and the insurance company will not pay out in the event of a claim;
- read the key policy information for exclusions – to ensure that you choose the right policy for you;
- check for excess charges – some policies make you pay a certain ‘excess’ amount before they pay out on claims, and some policies charge an excess per clause rather than one overall; and
- shop around using these documents to ensure you get the best deal for you. Some policies might be cheaper than others, but they may not offer the same level of protection.