The question nobody asks you after the mortgage.

Why this matters more if your credit has been difficult

If you have just bought after a CCJ, a default or a debt plan, two things are usually true at once. The mortgage probably costs more than the advertised rates, so the monthly commitment is at the top of what works. And the savings that might have absorbed a bad few months went into the deposit and the fees.

That is the definition of exposed. Not dramatic, not a scare story — just arithmetic. The people who most need a plan for three months without income are frequently the people who have just spent everything getting the keys.

It is also the conversation that gets skipped, because the adverse-credit discussion is so taken up with whether the mortgage is possible at all that nobody reaches the next question.

The three things, in plain terms

Life cover pays out if you die during the policy term, provided the claim meets the policy conditions. Depending on the policy and how it is arranged, the money could help repay the mortgage or provide financial support for your family. Whether you need it depends on your circumstances. If someone relies on your income, or you want to make sure a partner or co-owner is not left with the mortgage debt, it may be worth considering. Your existing cover and what you want the policy to achieve also matter.

Critical illness cover pays a lump sum if you are diagnosed with a condition covered by the policy and meet its definition. The conditions covered, severity requirements, exclusions and payout terms vary between policies. That is why comparing premiums alone can give you an incomplete picture of what you are buying.

Income protection can provide a regular income if illness or injury prevents you from working, subject to the policy's terms. Benefits usually start after a waiting period, known as the deferred period, and may cover only part of your previous earnings.

For someone who relies on their salary or self-employed income to pay the mortgage and household bills, this may be an important option to explore. How useful it is will depend on factors such as employer sick pay, savings, existing cover and the policy available to you.

All three types of cover have conditions, exclusions and limitations. Premiums must generally continue for the cover to remain in force, and a claim must meet the policy terms. Understanding those details before taking out a policy is essential.

What actually determines whether you need cover

There is not one answer that works for everyone. These are some of the questions worth asking.

• Who would be affected if your income stopped? A single homeowner with no dependants may have different priorities from a household relying on one main income.
• What would your employer pay, and for how long? Check your sick-pay arrangements and any life assurance or other benefits available through work. You may have more cover than you realise.
• What state support might be available? Eligibility, the amount payable and when payments begin depend on the benefit and your circumstances. Check what support you could actually receive rather than relying on assumptions.
• How long could your savings cover the bills? Consider the gap between the money you have available and the period you might be unable to earn.
• What cover do you already have, and what could you qualify for? Your health, medical history, occupation and other circumstances can affect availability, premiums and policy terms. Answer application questions fully and accurately and ask for clarification if you are unsure what needs to be disclosed.

These questions can help you identify where a financial gap might exist before deciding whether a policy is appropriate.

What I will not do

I will not tell you that everyone needs all three. Plenty of people need one, some need none, and a few are already covered through work and do not know it. Selling a policy to someone who does not need it is the fastest way to lose the client who would otherwise have sent me their sister.

If the honest answer is that your sick pay and your savings already cover the realistic gap, that is the answer you will get.