Beyond PMI: What Other Cover Should You Actually Have?

Private medical insurance is a brilliant thing to have — but it only covers one risk: getting ill and needing treatment fast. It does nothing for the financial side of ill health, or for what happens to your family if the worst occurs. Think of PMI as one piece of a bigger protection puzzle. Here’s the rest of it.

Life insurance — for the people who depend on you

If anyone relies on your income — a partner, children, a mortgage — life insurance pays out a lump sum if you die, so they’re not left financially exposed. It’s usually the cheapest protection you can buy for the peace of mind it gives, especially when set up young and healthy.

Critical illness cover — a lump sum if you’re seriously ill

This pays a tax-free lump sum if you’re diagnosed with a serious condition it covers — cancer, heart attack, stroke and others. It can clear the mortgage, cover adaptations to your home, or simply buy you time to recover without money worries. Often bundled with life insurance.

Income protection — the one everyone forgets

This is the most overlooked and, for many, the most important. Income protection replaces a portion of your income — often monthly — if illness or injury stops you working, right up until you recover or retire. Your salary is the engine that pays for everything else; income protection insures the engine.

• Statutory sick pay runs out fast — income protection keeps paying.
• Especially vital for the self-employed, who have no employer sick pay at all.
• You choose how long to wait before it pays out, which controls the cost.

Mortgage protection

A form of life (and often critical illness) cover designed specifically to clear your mortgage if you die or fall seriously ill — so your family keeps the home. If you’ve just taken on a mortgage, this is often the first protection to sort.

For business owners

If you run a business, there’s another layer: key person insurance (protecting the business against losing someone vital) and shareholder protection (so ownership passes cleanly if an owner dies). Different job, same principle — protect what people depend on.

How to prioritise

You don’t need everything at once. A sensible order for most people: cover the mortgage and dependants first (life / mortgage protection), then protect your income (income protection), then health (PMI), then critical illness on top. But the right mix genuinely depends on your circumstances.

PMI gets you treated. The rest makes sure that if life throws a curveball, your family and your finances stay standing.

Not sure what you need? Ask us

ComparePMI compares cover across a wide panel of insurers so you can see your options. We don’t give advice ourselves: if you’d like advice on medical, life, critical illness, income or business protection, we introduce you to an FCA-authorised firm who provides it and arranges your cover. It’s free and there’s no obligation.