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What is financial protection?

2 min read
Oct '25 • by Amy Bulger

Quick summary

Financial protection involves insurance policies like income protection that supports your income if you're unable to work, mortgage payment cover for up to two years during redundancy or illness, and life or critical illness cover that pays out lump sums if you die or are diagnosed with certain illnesses. It’s about safeguarding your income, home, and loved ones against unforeseen events, and needs can change over time.

“Protection” refers to types of life and protection insurance which are put in place to help “protect” you, your income, your home or your family from unforeseen events such as critical illness or unemployment, and to help secure your financial future.

Your protection needs will change throughout your life as your family situation, employment, and financial circumstances change. It’s important to consider what kind of protection you might need and to review this on a regular basis to take into consideration any changes in circumstances. A good time to assess your requirements is when you’re reviewing your mortgage needs.

Common types of cover include:

Income protection

This is designed to support you financially if you can’t work due to illness or injury. It will replace part of your income and will continue to pay out until you can work again. The payments will be regular, tax-free instalments.

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