If you have an insurance package for yourself, you’re already on the right track. You already have a gist of the importance of having an insurance plan.
However, once you have a family, the responsibility to protect your family members is even heavier, and you will need to consider your insurance plans much more carefully than before.
After all, you already insure you home, your car and your personal health, why not protect your family’s future?
Check out these four insurance plans that can greatly benefit you and your family:
Table of Contents
Life Insurance
This insurance is also known as a death cover. In the event of the breadwinner’s death, the insurance coverage will be able to serve as a family’s income for a while.
While this insurance plan is usually the most beneficial to the children of the family, the life insurance also proves to be helpful for financially-dependent adults such as parents, siblings or spouses.
These insurances can also aid greatly in paying for your final expenses and serve as an inheritance to your children. Your family members won’t have to liquidate their assets to pay any existing death-related taxes in your state or country, either.
Total and Permanent Disability Insurance (TPD)
Despite being super careful, accidents do happen. In the event that you get totally and permanently disabled, disqualifying you from most jobs even though you are academically qualified and experienced, this insurance will provide you a lump sum to cover your expenses.
Individuals who are no longer able to work in their own field or any other occupation will be covered for some time in terms of their income.
TPD usually funds your medical care and rehabilitation fees, along with any home modifications required to help you adapt to wheelchairs or any needed medical support. The funds can also be released through superannuation to protect your post-retirement expenses.
Income Protection Insurance
You might also know this insurance as salary continuance coverage. It insures your income if you are unable to work for both short- and long-term due to serious illnesses or injuries.
This insurance replaces some part of your income until you can resume working, so you can expect to receive payments up until your retirement, death or until the policy term ends, depending on which one comes first.
However, there is a waiting period before you start receiving your pay under this policy. You will not receive these payouts immediately once you apply for them, and the cost for this insurance gets lower with a longer waiting time for most terms.
You should also consider the illnesses or injuries covered under this policy first before you get this plan.
Trauma Insurance
Alternatively known as coverage for critical illness, this plan will provide you a set amount of money as reimbursement if you have been diagnosed with specified injuries or illnesses. This includes major illnesses such as stroke, cancer or any other illnesses that can cause a significant impact on your life.
With the insurance coverage, you will be able to cover various medical expenses, home mortgages or simply as an income source for your family while you are unable to work.
The people in our lives depend on us and our income for survival. If the sole or main income earner were to become disabled or died, what would happen to the family?
Personal risk insurance shifts the financial burden to the insurers when certain life-changing events occur such as a terminal illness/ death, trauma or total and permanent disability.