Financial protection typically involves taking out insurance policies which pay out on a specific type of event. For instance, critical illness cover (CIC) pays a lump sum to you or your family if you suffer a critical illness according to the definitions within the policy.
The purpose of taking out financial protection is to ensure that you can continue to sustain your standard of living even due to a shock from an unforeseen circumstance. With some types of insurance, such as life insurance or CIC, an aim of having the policy is to be able to pay off some or all of your mortgage, or for your surviving partner to be able to do so, in the event of your untimely passing.
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