Travel Insurance - for free

Travel insurance isn't obligatory. Buying your travel by credit card will usually give you some protection, such as lost luggage cover. But to be properly covered a policy is required. If you are aged between 21 and 65 and can pay in at least £500 per month you can get free annual travel insurance through the Alliance & Leicester Premier Current Account. It is a free and annually renewed multi-trip European travel insurance worth £60 a year (and if you get it as a joint account, both people are covered by the insurance). This account does not pay the best interest rate out there, but there is no fee for using it, you get a 12% interest paying regular saver with it, and if you apply for it through Quidco there's £50 cashback.

Medical Insurance - the NHS is free, or get through your employer

Private medical insurance is a luxury, not a necessity. There are three main reasons to buy it: to leapfrog the queue for non-urgent treatment; to choose when and who operates; and to get more comfort and convenience during treatment. The NHS provides comprehensive medical treatment to anyone in the UK who needs it, regardless of their ability to pay – but you may have to wait. If you accept that, medical insurance isn't necessary. Consider that you are already paying for the NHS through taxes, so why pay again? The best policy is to eat healthily and live healthily and use the NHS as your 'insurance'.

If you do want private medical insurance, some employers pay for you or your whole family, although this is classed as a “benefit in kind”, so you'll pay tax on the cost. If they offer it but you need to pay yourself, it is still often cheaper than when bought individually, because firms' bulk-buying power enables them to negotiate substantial discounts.