A good insurance policy will "cover what you need it to cover" if people shop around for products and make sure they get the one that is right for them.

Until now there may have been a lack of awareness about the importance of proper financial protection, however the current economic climate may be making people think more carefully, according to Which?.

Using a variety of products to cover all financial needs may also be advisable instead of relying on a single policy that will only cover one debt.

Lucy Widenka, personal finance campaigner at Which?, said that income protection may be good for some people as "with that product you are covering your income and you can decide how to apportion the money for various debts".

This could include things such as mortgages and credit cards.

According to Which?, a third of consumers who take out payment protection insurance are prevented from making claims because they fall foul of a 'significant exclusion'.

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