We'd rather not think about it, but the fact is that around a third of us will suffer some form of cancer before we reach retirement age. That's why it's really important to do what you can to find some way of being financially secure should illness strike.



The insurance that immediately springs to mind is life cover. This is where you insure yourself for a certain amount, which will be paid out to your dependents if you die. The set amount would be paid whether you suffer a premature death or live to a ripe old age - as more and more people are doing. With some policies premiums cease once you get to 70 or so, but the cover is still the same. As this insurance pays out after your death, it's not essential if you haven't anyone dependent on you. Recent research shows that one if five people have no life insurance in place.

Even if you have no dependents, could you cope financially if you had no income? Not many people could, which makes it really important that you have some form of income protection. And doubly so if you have people who rely on you financially. This is where critical illness and permanent health insurance come in.

If you have critical illness cover and are diagnosed with a condition which could potentially become terminal, you will be paid a tax free lump sum. This will be an amount agreed when the policy is taken out and is often between 250,000 and 300,000 pounds and it can be used for any purpose whatsoever. It can be used to ensure that financial matters run smoothly, to employ help with housework, gardening or child care or for adaptations to your home if mobility is a problem. It's up to you. You would be eligible for statutory sick pay and your employer may have some form of insurance built in to your contract, but serious illnesses can have massive financial implications.

When working out the premium, the insurer will ask you for information regarding your current health and lifestyle. If there's a family history of certain diseases or you're a smoker or heavy drinker, you will pay a higher premium. Be totally accurate when filling in these details, as undisclosed conditions or false statements can result in the claim being denied.

With permanent health insurance cover, a tax-free income which is calculated as a percentage of your salary is paid for non-critical conditions. These would be those preventing you from working, but no classed as life-threatening.

Medical advances mean that a lot of people are living longer and recovering from illness that would have been dreaded at one time. Because of this, the average cost of life insurance has dropped over 40 per cent over the past few years. This is a good time to assess your insurance needs and make sure that the correct cover is in place. Sickness can strike at any time and the lifestyle that you and your family are enjoying now could be severely affected so please give it some thought