How Much Insurance Do You Really Need?

Summary

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Podcast Summary: Merryn Talks Money

Episode Title: How Much Insurance Do You Really Need?
Date: January 28, 2026
Host: Merryn Somerset Webb (Bloomberg Editor-at-Large)
Guests: John Stepek (Senior Reporter, Money Distilled), Kevin Ryan (Consumer Insurance Analyst, Bloomberg Intelligence)

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Overview

This episode dives into the often-confusing world of personal insurance. Merryn Somerset Webb explores an essential question for anyone managing their finances: exactly how much insurance is necessary? With insights from insurance expert Kevin Ryan and finance journalist John Stepek, they break down which insurances are absolutely required, which are highly recommended, and those that are more flexible or optional. The discussion considers everything from car and home insurance to pets, health, and travel, offering real-world advice and clear explanations in Merryn’s trademark witty, conversational style.

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Key Discussion Points & Insights

1. The “Must-Haves”: Legally Required Insurance

Car Insurance

• Only insurance that is legally required in the UK.
  • Third-party insurance: Minimum legal requirement; covers damage to others, not you ([04:44–05:26]).
  • Fully comprehensive: Covers both others and your own car ([04:55–05:16]).
  • Not all insurers offer third-party only anymore due to competitive pricing and extras being cut ([05:30–06:15]).
• Important policy features to watch for:
  • Windscreen cover (modern cars have expensive windshields with sensors)
  • Courtesy car (delays for repairs are common)
  • Shop around for young drivers—comparison sites can offer significant savings ([07:12]).
• Cost trends:
  • Contrary to popular belief, average premiums have started dropping after spiking in 2023 due to regulatory changes ([08:02–09:36]).
  • “Prices may be down over a year or so, but they're still fairly comprehensively up on pre-Covid levels.” – Merryn ([08:30])

2. Building & Contents Insurance: Essential for Homeowners

• Building Insurance:
  • Not legally required unless you own a property, but crucial. Mortgage lenders usually insist on it.
  • “The mistake that people make there is insuring their house for the value of their house rather than for the cost of rebuilding.” – Merryn ([10:14])
  • Over-insuring doesn’t mean higher payouts; claims are for rebuilding cost only ([10:32–10:39]).
  • Underinsuring can risk policy invalidation ([11:14]).
  • Online calculators work for standard homes, but unique/period properties require specialist broker advice ([12:07–12:36]).
• Contents Insurance:
  • Often overlooked, but vital. Underinsurance is common—the onus is on owners to provide proof of expensive items ([13:13–14:30]).
  • For inherited, valuable, or unique items: take photos, secure valuations, and keep documentation offsite.
  • “Insurance is mostly there for catastrophes rather than minor inconveniences.” – John ([16:24])

3. Optional but Sensible: Other Insurance Types

Pet Insurance

• Highly recommended if you have pets, especially dogs/cats.
• Veterinary costs can be as high or higher than human medical care. Example: border terrier with multiple injuries cost “the most expensive border terrier in the world” ([18:10-18:42]).
  • “A dog's leg is about three grand. It's the same as a human leg.” – Kevin ([17:24])
• Trying to self-insure rarely covers unexpected, high-cost emergencies ([21:31–21:52]).
• Small pets (e.g., hamsters) might not require insurance—humorous aside about the vet’s attitude: “20 quid for a new one.” ([22:40–22:56]).

Private Medical Insurance

• Increasingly popular as NHS waits grow.
• Costly for individuals in their 40s/50s (£2,000–£3,000 a year).
• Self-insuring plausible for routine needs, but insurance valuable for major illnesses or expensive urgent treatments ([23:29–24:19]).
• NHS as universal “catastrophe insurance,” but realistic access concerns raised ([24:56–26:23]).

Life Insurance and Critical Illness Cover

• Life Insurance: Often provided as a work benefit; check your contract.
  • Good idea to cover an outstanding mortgage.
  • “If you're in a couple and you've got a mortgage, then a bit of life insurance to cover that outstanding mortgage… is a good idea.” – Kevin ([26:47])
• Critical Illness Insurance: Most useful for self-employed; can be expensive and isn’t for everyone ([27:34–28:03]).
  • Sometimes bundled or as an option with life insurance policies.
  • Some policies pay out early in case of terminal diagnosis ([29:14]).
  • Hypothetical scenario: If given a year to live, insurance pays out, but if you recover, you may owe repayment ([30:08]).

Travel Insurance

• “Surely... I would say travel insurance was compulsory. I'd never go away without it.” – Merryn ([30:40])
• Absolutely recommended for international travel, and especially critical outside Europe; subtle distinctions for business trips, too.
  • Annual multi-trip policies usually cover both leisure and short business travel ([31:51–32:11]).
  • Home insurance or credit cards may offer travel-related cover as perks—always check small print ([32:23–32:36]).

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Notable Quotes & Memorable Moments

• On the value of your life: “How much is your life insured for?... How much is the Mona Lisa insured for? May as well ask.” – John ([03:11])
• On rebuild vs. resale value: “If your house burns down, it doesn't matter what it was worth. What matters is how much it’s going to cost you to find someone to put it up again.” – Merryn ([10:14])
• On the importance of pet insurance: “A dog’s leg is about three grand. It's the same as a human leg… And if a dog has an accident… they will mandatorily keep it in overnight. That’s more expensive than most hotels I stay in on holiday.” – Kevin ([17:24])
• On comparison shopping: “It's consistently, certainly in my experience, worth shopping around when you get your renewal… most years I consistently find you can save a reasonable amount of money and it doesn't take that long.” – John ([33:55])
• On insurance admin: “It is entirely possible you could lose everything and get almost nothing back if you haven't done this slightly horrendous sounding amount of admin.” – Merryn ([14:30])
• On critical illness insurance: “Historically, when I've looked at it, I've always personally shied away, thinking, well, you know, I just hope I go quickly and the life insurance kicks in.” – Kevin ([28:07])

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Key Timestamps

• 02:20 – Show begins; introductions and episode aim
• 03:11 – Playful discussion: “How much are you worth?”
• 04:44 – Car insurance: What’s legal and what’s recommended
• 07:12 – Insuring young drivers; impact of comparison websites
• 08:02 – Why have premiums risen and then fallen recently
• 10:02 – Buildings insurance—key difference between value and rebuild cost
• 12:07 – How to estimate rebuild costs and when to use a broker
• 13:13 – Properly insuring contents, especially valuables
• 17:05 – Pet insurance and jaw-dropping vet bills
• 21:31 – Can you self-insure for your pet?
• 23:29 – Private medical insurance: demand, cost, pros and cons
• 26:47 – Life insurance: when to get it and who needs it
• 27:34 – Is critical illness cover worth it?
• 30:40 – Never travel without insurance!
• 33:55 – Always shop around at renewal for best deals

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Recap & Actionable Takeaways

• Know what’s compulsory (e.g., car insurance in the UK).
• For homeowners: Insure for REBUILD COST, not market value; get broker help for quirky properties.
• Keep records: Photograph and document valuables for contents cover.
• Pet insurance: Almost never enough to self-insure for sudden, large vet bills.
• Health cover: Consider private insurance if access and rapid treatment matters to you—otherwise, NHS is the backstop.
• Life/critical illness: Essential if others rely on your income or you have liabilities; check your work benefits first.
• Travel insurance: Always buy, especially for trips outside Europe; check if your credit card or home insurance already includes some cover.
• Shop around regularly for better prices, especially as markets get more competitive.

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Final Thoughts

This was a highly practical episode filled with real-world advice and anecdotes that demystify personal insurance choices. Whether you own a house, love your dog, or are just planning a holiday, the panel’s guidance helps listeners balance peace of mind, practicality, and cost—while keeping their sense of humour intact.

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Produced by Sama Saadi and Moses Andam.

For feedback, comments or episode ideas, email: [e-mail]

Transcript

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[Maren Thomset Webb]

Bloomberg Audio Studios Podcasts Radio News. Welcome to Marantalks yous Money, the personal finance edition of marantalks Money. In these bonus podcasts, we talk about the best strategies for making the most of your money. I'm Maren Thomset Webb, Editor at Large for Bloomberg UK Wealth.

[John Stebik]

And I'm John Stebik, senior reporter and author of the Money Distilled newsletter.

[Maren Thomset Webb]

Award winning, award winning. Yeah, never miss out on those, never miss out those words. Listen, question for you, John. How much is your life insured for?

[John Stebik]

Oh, I couldn't possibly say this. You know, how much is the Mona Lisa insured for? May as well ask.

[Maren Thomset Webb]

I don't know. I don't know. I mean, this is an interesting one because I've been looking at this recently. Should my life be insured and how much should it be insured for? Because I don't think I have life insurance. What do I need to leave behind me? I didn't actually want you to answer that, John. I was more of a rhetorical question than a John, please tell me what time what I'm worth question. It wasn't that kind of question. Anyway, it's on my mind. So today we are going to talk about all types of insurances. The insurances you have to have. They are insurances that you should have and, and the ones that are fairly flexible. Now, in order to discuss this and get it right and the man who's going to tell me what I'm worth, we have on with us today Kevin Ryan. Kevin is an analyst with Bloomberg Intelligence and an expert in consumer insurance. Kevin, thanks for joining us today.

[Kevin Ryan]

Thanks for having me.

[Maren Thomset Webb]

What do you think I'm worth?

[Kevin Ryan]

Oh, at least five times salary if you're a corporate employee.

[Maren Thomset Webb]

Yeah, absolutely. And a lot of corporates will just give you this, won't it'll be in your contract that you get four or five times your salary.

[Kevin Ryan]

Exactly.

[Maren Thomset Webb]

Personally, I think I'm worth rather more than that, but maybe we won't get into that. Of course, what we want to do today is to talk about all the different types of insurance, what you must have, what you should have and what might be nice to have. And as far as I know, the only one that is a legal requirement is car insurance, right?

[Kevin Ryan]

Yes, that's right. You've got to have at least third party insurance if you own or drive a car.

[Maren Thomset Webb]

And tell us the difference between third party and fully comprehensive, I'm guessing most people know.

[Kevin Ryan]

But just in case third party is just, it covers you. If you run into somebody or run into somebody's garden wall, they get paid out. Fully comprehensive covers you for absolutely everything. So if you have an accident and drive into your own brick wall, you can claim on your insurance and get your car repaired.

[Maren Thomset Webb]

Okay. So with third party, you drive into another car, your insurance covers all their costs, their medical bills, etc. But absolutely none of yours. You are on your own.

[Kevin Ryan]

That's right.

[Maren Thomset Webb]

But it's very significantly cheaper presumably, yes.

[Kevin Ryan]

Although I have to say, a lot of insurers now don't offer it at all. So.

[Maren Thomset Webb]

Yeah, yeah. And you know what? I found out the other day that, that not everybody offers anymore. And back in the old days with car insurance, if you had your own car insurance, you were usually automatically third party covered on other people's cars. So you could just jump into someone else's car and not stealing it obviously, but with their permission and drive off in it and be covered third party. But that doesn't seem to be the case anymore.

[Kevin Ryan]

It certainly is with some policies. I have one like that.

[Maren Thomset Webb]

Oh, do you?

[Kevin Ryan]

But I think as car insurance has got more competitive price wise, with the rise and rise of comparison websites, I think some insurers are pulling back from some of these what they regard as extras.

[Maren Thomset Webb]

Okay, so when we're getting car insurance, which we have to have, what should we be looking for?

[Kevin Ryan]

I think you need to be looking for things you want and things that insurers will give you a discount if you don't have, like windscreen cover. Windscreens now, particularly in modern cars, are very expensive to replace because they've got radio aerials and all sorts of sensors in them. So definitely tick the box to have a windscreen cover. And the other thing I would tick the box for is having a courtesy car when yours is off the road because of supply chain logistics and so on. Very often, even a simple repair like a smashed bumper, the most common knock can take several weeks.

[Maren Thomset Webb]

Okay, okay. So you need a car. And what about getting insurance for young people? How's the best way to go about that? It's a big topic of conversation among me and my friends.

[Kevin Ryan]

Yes, I didn't find that a problem when I had that challenge. And one particular insurer was very keen on having young people. And it was expensive, but not ruinously so. So I think the answer is to all of these things is to shop around and the comparison sites are the place to do.

[Maren Thomset Webb]

Okay. And can you tell us from your area of expertise why it is that car insurance has got so much more expensive so quickly? Is that to do with EVs being more likely to be written off or harder to repair? Is it to do with the supply chain logistics you just mentioned? Or is it, as we sometimes read in the newspapers, that those who do have insurance are paying a lot for the illegal drivers on the road?

[Kevin Ryan]

Well, I think that's a misnomer, Merritt, and I must pull you up on that, I'm afraid.

[Maren Thomset Webb]

Absolutely.

[Kevin Ryan]

If you look at the last confused.com quarterly motor price index. Their average cost is £726 for the fourth quarter of last year and that's down 13% year over year. So what is curious is that prices are going down. They peaked at 995 pounds.

[Maren Thomset Webb]

When was that though?

[Kevin Ryan]

I mean, isn't it third quarter of 2023?

[Maren Thomset Webb]

So that was the bit when they went up very dramatically post Covid. They went up from a much lower level than I think you're suggesting they're falling to now. So prices may be down over a year or so, but they're still fairly comprehensively up on pre Covid levels and higher than inflation.

[Kevin Ryan]

Well, the second quarter 2023 peak only overtook the fourth quarter 2017 by a few pounds. So my view is that we've had a good deal from motor insurers and that in terms the price has been pretty flat. And I think the reason we had a blip up in 23 was that the regulator introduced the general insurance pricing practices rule in 1st of January 2022 and that basically meant they couldn't price walk. And so lots of portfolios of motor insurance were repriced and settled down. So they spiked and then they're back to normal, everybody's where they should be again and prices are coming off.

[Maren Thomset Webb]

Okay, great. So everything's absolutely fine. Your motor insurance is pretty much as it was. It's relatively easy to get. You can get third party and comprehensive cover pretty easily. And you can get the additional driver thing we were talking about earlier.

[Kevin Ryan]

You can.

[Maren Thomset Webb]

Okay, great. I feel a lot better. Right. What? So there's nothing else that's legally required, but the next insurance that you kind of have to have legal requirement or not is building insurance, Right?

[Kevin Ryan]

If you own a property, yes, it would be silly not to unless you're very wealthy and you want to stump up the rebuilding cost if something awful happens.

[Maren Thomset Webb]

Okay. But the mistake that people make there is insuring their house for the value of their house rather than for the cost of rebuilding their house. Because if your house burns down, it doesn't matter what it was worth. What matters is how much it's going to cost you to find someone to put it up again.

[Kevin Ryan]

Correct.

[Maren Thomset Webb]

Okay. And if you over insure your house, you're not going to get paid out that. You're just going to get paid what it costs to rebuild.

[Kevin Ryan]

You'll get paid the rebuilding cost. Insurance is a contract of indemnity. So the deal is you buy buildings insurance, the thing burns down or blows down and the insurer will Come along and reinstate it.

[Maren Thomset Webb]

Yeah. And there was a period, certainly in Edinburgh I don't know about, in other places where, particularly with older houses, when house prices were very low over the last decade or so, where people were underinsuring their houses for building insurance because it turned out that it would cost more to rebuild a Georgian townhouse than it would to buy one.

[Kevin Ryan]

I think you've got to be careful with underinsurance because the underwriter can turn around and say you've misrepresented the risk to us and therefore you have no cover at all. So it's a fine line to tread and I think one needs to exercise caution.

[John Stebik]

What is the best way to figure out what the rebuild cost of your house is? Because I know, I think I went on the Rex website, I think, a while ago, and I've got a pretty normal house. It was just built, you know, like in the 90s and so on in the state and things. There's nothing unusual about it. So I think you can be pretty confident in what they suggested. But if you've got something a bit quirkier, or should you actually ask someone for a specific valuation, or can you just not guess? But what's a good guideline for a sensible buildings insurance valuation?

[Kevin Ryan]

I think there are a number of, as you mentioned, online calculators. And I think ultimately, if in doubt, if you've got a grand house and it's Georgian and it's listed and all the rest of it, I would go onto your insurer and say, what would you recommend? And put the ball very much in their court and they will help you because they don't want you to be underinsured.

[Maren Thomset Webb]

Yeah. Feels like the kind of time you should have an insurance broker. Right. Rather than just buying online. If you have a difficult house, if.

[Kevin Ryan]

You'Ve got a difficult house and it doesn't fit the standard, big insurers things, then I think you need to go to a large broker that specializes in these sorts of things and they will sort it for you.

[Maren Thomset Webb]

Okay. The other insurance that almost everybody has, which is not compulsory, but I'm sure pretty advisable, is contents insurance. Insurance. Right. Because if your house burns down, the contents are going to be pretty valuable too. And this is the area where a lot of people underinsure and then find that they're in a whole pile of trouble when something does happen, is that right?

[Kevin Ryan]

I think it is. And I think the other thing insurers need to see is receipts for a lot of those things that people will say they've lost because they need evidence that you had a 58 carat ring that's somehow melted or whatever.

[Maren Thomset Webb]

But how can you have a receipt for things you inherited from your granny?

[Kevin Ryan]

It's really difficult and I think what you need to do there is take a photograph of it, prove that you've got it, it's in the house, it's on your hand or something like that, and have a jeweler value it and have a copy of that receipt somewhere safe what the jeweler's valuation was and proving that it was you actually owned it because it was in your, in your possession via a. I mean, I.

[Maren Thomset Webb]

Suppose the other thing is that in extremists, I mean I think that would work for a burglary, but if your house is burnt down, well that's going to. All that's going to. I mean should people really have an inventory of everything valuable in their house held off site?

[Kevin Ryan]

I think they should. I mean if you, if you've got a high value portfolio of bits and pieces then I think you need to do that and I think if you have got a high value portfolio of shuttles and bits and pieces, the insurer will insist on that.

[Maren Thomset Webb]

Okay, so it is entirely possible that you could lose everything and get almost nothing back if you haven't done this slightly horrendous sounding amount of admin.

[Kevin Ryan]

Not quite, but I think where they get sniffy is you know, the old rings and the watches and the paintings. Some of the paintings, yeah. And that you need to pay attention to. But other things like your television, your dishwasher, you'll get new for old. So in this instance it's the only insurance that isn't a contract of indemnity because you get new for old, because they can't go out and find a two year old Senussi washing machine or whatever it is you've just lost.

[Maren Thomset Webb]

Well, there you go. Silver linings, John, is all your vastly valuable collection of inherited jewelry. Properly photographed, receipted, valued and with those papers stored off site. I know you're efficient when it comes to administration.

[John Stebik]

Actually, believe it or not, my wife did lose or no, sorry, one expensive handbag was stolen many years ago and that was something we actually did have a receipt for because it was one of the kind of few things that I guess I'd sort of turned around to the insurer and said because they ask you if something's worth over a certain amount, this was maybe like one or two things I can say it would be a pain if you had a lot more Stuff. And, I mean, I can't say that everything in the house is completely itemized, but to be fair, I do take Kevin's point. I mean, if I had an expensive painting on the wall, I probably would, you know, have some proof of ownership of that. So. Yeah, I mean, I can see that makes sense, actually. I mean, I can also see it's a total pain in the neck, so I'm glad that I don't actually own anything particularly valuable.

[Maren Thomset Webb]

It's a shame, isn't it? I mean, Kevin, you don't know this, but one of the things that we try and do on this podcast is save people from. And now look what we've done.

[John Stebik]

Well, I guess the thing with the admin is you don't want the admin to arrive at the point where you need it. It's like one of these things where you want to have the inventory there so that it's not a total nightmare if the worst does happen. And I guess that's the other point about insurance is mostly there for you're trying to show yourself against catastrophes rather than minor inconveniences. Really.

[Maren Thomset Webb]

Yeah. Okay, fair enough. All right, so what. What's up next? So we've. We've already spent a pile on motor insurance. We've spent a pile on building insurance. We've probably spent rather too much on contents insurance after this conversation. What's the next insurance on our list, Kevin?

[Kevin Ryan]

Well, I imagine if you've got a favourite dog, a poodle or a cat.

[Maren Thomset Webb]

I do have a favorite dog. And when he was run over by a car, we did not have insurance. If you ever come to Scotland, I will introduce you to the most expensive border terrier in the world.

[Kevin Ryan]

So I would recommend people have pet insurance, because me too, you know, if a dog does run into the road and needs surgery on a leg, that's the same as you going into a private hospital and having the same. So it's several thousand pounds. So a dog's leg is about three grand. It's the same as a human leg. And the other thing that you will find, if a dog has an accident or a cat and has an operation, they will mandatorily keep it in overnight. And I have to tell you, having been through this process myself once, that it's more expensive than most hotels I stay in on holiday. So insurance is a good thing here. It's not that expensive if you shop her out.

[Maren Thomset Webb]

Well, all I would say is that I would be absolutely thrilled if my dog had only broken one leg and only stayed in in hospital for one night. In fact he broke. Would everyone like to know? He broke two hips, leg in one place, six ribs and had a hernia and he was in for nearly two weeks. Enjoyed doing the sums on that one. And as I say, most expensive border terrier in the entire world. He's available for viewing 10 or a.

[John Stebik]

Go the $6 million dog coming a screen near you.

[Maren Thomset Webb]

Exactly. Exactly.

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[Maren Thomset Webb]

Let's pick that one up though because you could self insure with this. You could say well my pet insurance is 60 quid a month or whatever and I'm just going to put that into a high interest bank account and I'm going to leave it until something happens. But I think from what I know, and it sounds like you know as well, Kevin, sorry about that, is that that's probably never going to be enough.

[Kevin Ryan]

I don't think it is. Because one of the things that's interesting about the veterinary world in the UK is that prices go up a bit more than cpi.

[John Stebik]

Is there a size of pet where you would suggest not a size, you know, like for example, I mean we've owned things like budgies and hamsters and I mean those, I must admit we didn't get insurance for. I wouldn't tell you about the time I got a hysterectomy done in a hams. I will just part that one for future humiliation but I'm just saying. So I can see the argument for dogs definitely and obviously horses. I mean that's practically, that's like insuring a car. But a cat seems slightly borderline to me. Although I suppose again that depends on how affectionately you feel for your cat.

[Maren Thomset Webb]

I don't know John, I would say cats, yes, but hamsters. We have a friend who's a vet and you know what she says about hamsters, I can't imagine she says 20 quid for a new one.

[John Stebik]

That's the compassion I like to hear from our medical professionals.

[Maren Thomset Webb]

Anyway, moving on, moving on. Given how expensive it is just to keep a dog in hospital overnight and by the way, I get it, there's the, well there's the oxygen masks and the intensive care nurses and the special room and all that. It's expensive. But if we're going to take out insurance for our border terriers for this, clearly I think you would suggest, Kevin, that we should have our own medical insurance as well.

[Kevin Ryan]

I think that's sensible. And companies like Axa and Aviva have been reporting that take up of their private medical care offering has has been booming in recent years.

[Maren Thomset Webb]

Yeah, well it would Be what was the state of the NHS and all that. But the only problem there is that everyone's going private. Eventually you end up with the same cues for going private. Right.

[Kevin Ryan]

I don't know. I try and live a healthy life, so I don't know.

[Maren Thomset Webb]

Anyway. And it's also very expensive. I mean, you know, you're talking for someone in their 40s or 50s, you're talking maybe two or three thousand pounds a year for private medical insurance. So is there a case there for self insuring, for saying, okay, do you know what, I'm just going to put that money into a bank account and if I do need a hip replacement for five grand or whatever it is, the money will be there and I haven't wasted it on insurance.

[Kevin Ryan]

Yeah, I think that's right. I think where it does come into play is if you had some, you know, really bad disease, a cancer or something that's going to cost considerably more and need urgent treatment more to the point, then I think that's where private health insurance can come into its own. But yes, if you've got the discipline, and this is the thing, I think, the discipline to put a couple of hundred pounds into the high interest account to pay for your hip or broken leg or whatever it happens to be that you think might occur, then go for it.

[John Stebik]

So technically speaking, I guess the NHS is there, Azure catastrophe insurance. So if something like an A and E type thing happens, then you're kind of covered. And the flip side of that is the sort of things you would self insure for. I don't know. I can see that self insurance is a little bit more feasible here than it is in the pet case, because if you do it for long enough and you start early enough, then you probably could conceivably save up enough for a hip operation or something like that.

[Maren Thomset Webb]

And you have a back stop, which pets don't.

[John Stebik]

Yeah, yeah, exactly.

[Maren Thomset Webb]

Although I would say, can you really rely on NHS A E anymore? I mean, I know where I live in Scotland we do not have private A es, but certainly in the south there are private A es now out there where you can go and be seen. Oh, in under 14 hours.

[John Stebik]

Yeah, it is. I do. I think it's a tricky one and I can see why demand's going up. You open bank accounts now and they'll do those GP out of hours services that you can just phone up and basically get a zoom appointment with a gp. And that kind of thing I can see is really useful because getting a GP appointment, even for just A kind of reassuring pat in the head that does. Nothing wrong with me. That's very hard these days. Yeah. Once upon a time I'd have said you probably don't need medical insurance. And now I'm much more divided about it, I have to say.

[Maren Thomset Webb]

Yeah. I mean, if you break your leg, you want to be able to see a doctor before it resets itself in the wrong way, don't you?

[John Stebik]

Preferably.

[Maren Thomset Webb]

Okay, moving on. So medical assurance, if she can, there, there is some possibility to, to self insure. There. What next? We talk about, we talked about the value of my life, which was nice. Right. But life insurance, a lot of people will get it with work. Everyone should check their, their contract, right?

[Kevin Ryan]

They should, yeah.

[Maren Thomset Webb]

And if you don't have it through.

[Kevin Ryan]

Work, I think you need to assess why you need it. I think if you're in a couple and you've got a mortgage, then a bit of life insurance to cover that outstanding mortgage, should one of you keel over, is a, is a good idea. And it's not hugely expensive for most people with most mortgages.

[Maren Thomset Webb]

So if you're reasonably young and you're in a relationship and you have a mortgage, in fact, even if you're not in a relationship and you have a mortgage, quite nice to leave behind you a paid off house for somebody, wouldn't it?

[Kevin Ryan]

Well, yes, if you've made other provisions, but less urgent.

[Maren Thomset Webb]

Okay, so life insurance. Yes. And now here's another that a lot of people have, but may or may not be necessary, which is critical illness insurance. What about that?

[Kevin Ryan]

I think something like that could be really useful for the self employed. So if you become, if you're self employed and you suddenly can't do whatever you normally do, whether it's plumbing or a voiceover or whatever because you've got a broken leg or actually you've been diagnosed with something awful, then I think that's well worth considering. But it's not cheap.

[Maren Thomset Webb]

It's not cheap. What would it, what does it cost?

[Kevin Ryan]

Well, I haven't got any exact figures, but historically when I've looked at it, I've always personally shied away from thinking, well, you know, I just hope I go quickly and the life insurance kicks in.

[Maren Thomset Webb]

Well, I mean, that can be arranged, Kevin, increasingly easily these days.

[John Stebik]

Okay, that is a tricky one, Lawyer. Right. Because it is again. Yeah, I know what you mean. Anytime I've kind of thought about it, it's one of those ones, you look at it and you think, actually that would be a nice to have. But at the same Time, it's just way too expensive for covering that particular issue. And I suppose the other thing is some, some employers do actually offer it as well, if you're. I mean, I think it's a rarer one because, well, it's expensive for them too. But certainly a few places I've worked with, usually with younger overall workforces, they seem to get it cheaper and so they're happier to include it as a perk.

[Maren Thomset Webb]

Yeah. Does it also sometimes come with life insurance as sort of an optional extra? If you buy life insurance, Kevin, will it come with critical illness option?

[Kevin Ryan]

It might do. In some life covers there'll be a clause that says if you're diagnosed with, you know, an end of life, an imminent end of life event, they'll pay you out so that you can organize your affairs.

[Maren Thomset Webb]

So they'll pay. Okay, so that's not. Yeah, sorry. So it's not critical illness insurance. Yeah.

[Kevin Ryan]

But it kicks in if, you know, you go to the doctor and they say, I'm very sorry, you need to prepare yourself. You've got just a couple of months or whatever it is they should. Then if you've got that clause in your life policy, pay out the life policy ahead of time.

[Maren Thomset Webb]

Okay, what happens then? What happens if you're diagnosed with a terminal cancer and told you have under a year, for example, and your insurance pays out, you pay for your mortgage, all good, and then you go one of those trials and have a miracle cure?

[Kevin Ryan]

Well, I think you owe the insurance company. That's the problem.

[John Stebik]

Every silver lining has a cloud.

[Maren Thomset Webb]

I know, I know. I would have thought the insurances company would just go, well, good for you, on you go. But maybe not, right, John? Kevin, what else?

[Kevin Ryan]

I think the big one now is, and particularly post Covid is travel insurance. Now that depending on how much you pay and all the rest of it, that can be useful.

[Maren Thomset Webb]

I mean, surely. I mean, I would say travel insurance was compulsory. I'd never go away without it. Could anyone go away without travel insurance? Would you go to America without travel insurance? That would be insane.

[Kevin Ryan]

Well, I suspect lots of people do, particularly in Europe.

[Maren Thomset Webb]

But yeah, well, you can get an echr. Is that what it's called? ECHR in Europe? Kevin? Yeah. Which kind of covers you for medical expenses, right?

[John Stebik]

Yeah, yeah, the ehec, I think it is.

[Maren Thomset Webb]

Sorry.

[John Stebik]

Oh, G hic No, I think since Brett.

[Maren Thomset Webb]

E C H R M. I think.

[John Stebik]

I think you're getting mixed up. Trouble making documents.

[Maren Thomset Webb]

Absolutely. Troublemaking will over the place. Sorry, everybody. Apologies. Oh yeah, I just got off a long Haul flight, John. You never go anywhere without travel insurance, Dave.

[John Stebik]

I say, to be fair, I don't. I've always had it drummed into me from a young age about getting repatriated off a mountainside, even though I'm never on a mountainside. So. Yeah, but yeah, I can see actually how people might be a bit cavalier about it. Going to Europe, I think anywhere outside of Europe for definite. You should have travel insurance and it is cheap, it's not an expensive thing.

[Maren Thomset Webb]

Yeah, you can get annual multi trip insurance.

[John Stebik]

Exactly, yeah.

[Maren Thomset Webb]

And I found out the other day. Wait, the other day, by the way, when I was going abroad for a few days to work and didn't have insurance, I thought I should have a separate business travel insurance, but it turns out not so. Most travel insurance travels you for leisure and for short business trips. Is that right, Kevin, or was I just lucky?

[Kevin Ryan]

No, I think that's probably right. The other thing to look at is if you've got a homeowner's policy, is to look at that because quite often your insurer will extend that into travel.

[Maren Thomset Webb]

And your credit card as well. Right. I mean certainly a lot of American Express cards, assuming you pay for the trip with your American Express card, will cover you while you're away. I assume that's true of lots of credit cards.

[Kevin Ryan]

Yeah. And it's definitely a perk to look out for.

[Maren Thomset Webb]

Yeah.

[Kevin Ryan]

Because if you do get stranded, they will pay for the hotel, the new flight, etc.

[Maren Thomset Webb]

Okay, well that's, that's that last one. Anything else or are we, are we actually there now? This has been a very, very expensive podcast.

[Kevin Ryan]

Well, I think that the thing you can reassure listeners with is that that the main things like motor and homeowners, the price is actually going down. So great. You know, buildings only cover, according to consumer intelligence, fell 2.2% in the fourth quarter.

[Maren Thomset Webb]

Why do we think that is? When the cost of construction are going up so much and when we hear of nothing but the cost of construction rising and rising and how impossible it is to build anything because the build costs are so high, et cetera, why would the cost of insuring be falling? Is it maybe because there are fewer fires than there used to be, fewer buildings fall down, fewer bits fall off buildings onto other people's heads. I mean, is it simply about that?

[Kevin Ryan]

No, I think it's about insurers with lots of capital and there's plenty of competition. So the competition in the UK market remains intense for these main big ticket items or big premium pools like motor.

[Maren Thomset Webb]

Like homeowners Brilliant, John.

[John Stebik]

Yeah. I mean the other thing I would say is that it's consistently, certainly in my experience, it's consistently been worth shopping around when you get your renewal. I mean, just this year I managed to save £150 off my buildings insurance and it wasn't that high in the first place. The quote came in for, I think it was, it was 300, then it came in at 400. And so I just went to a comparison site, put it in and I got it back for 250. And I mean, you know, it's. And it's the same on car insurance and all this very rarely during COVID was the one time I did notice that it was pointless to shop around or do the comparison site thing when your renewal came in because it was literally a matter of like a tenner or something like that and it was a waste of time. But other than that, I must admit, most years I consistently find that you can save a reasonable amount of money and it doesn't take that long. Much as I hate admin, famously hate admin. So yeah, yeah, definitely. I think Shop in the Ring makes a lot of sense.

[Maren Thomset Webb]

Well, there you go. Who needs Martin Lewis when you've got John Stapek? Right, Brilliant. Thank you both so much. That was super useful. And off you go everyone to do your admin photographs of all your jewelry, off to the, off to the valuers, etc. I don't know if I'm going to be doing that. Maybe I just don't have enough value to make it worth it. I said put it on my long term list to do one day in the distant, distant future. Thanks for listening to this week's Marin Talks yous Money. If you like our show, rate, review and subscribe wherever you listen to podcasts. Also be sure to follow me and John on X or Twitter aunsw and johnstepec. This episode was produced by Sama Saadi and Moses Andam. Questions and comments on this show and ideas for new shows and on all our shows are always welcome. Our show email is merriamoneyloomburg.net.

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