Insurance pays out when an unpredictable event causes a loss. You need insurance when:  

• • • > The law says you must have it – for example, if you drive a car, you must be insured;
    • > Something happens to you and you can't afford to pay for the loss – for example, if a tile fell from your house and injured someone who then claimed thousands of £s for their lost earnings;
    • > If something happened, people who are dependent on you could not bear the loss – for example, if you died and your children needed the financial support you had previously given.

In some cases, the state provides insurance by, for example, paying incapacity benefit if you can't work due to illness, or bereavement benefits to a widowed husband or wife.

But state benefits are low and you usually have to pass a number of tests before qualifying for them.

Find out more about State Benefits.

Often your employer will provide life insurance when you are at work (link to Work section). A scheme at work might also provide some health insurance, such as income protection insurance or private medical insurance (link to health care section)

• > Car insurance
• > Home insurance
• > Travel insurance
• > Private medical insurance
• > Accident insurance and sickness insurance

Get some more help with insurance via the FSA Insurance website.

Courtesy of the Scottish Executive - Scotland Is The Place .