When you have a family, your primary priority to keep them secured and protected at all times. However, you should not only protect them in a physical aspect, but in a financial aspect as well. One of the ways on how you can protect your family is to provide them with insurance.
There are different types of insurance you can choose from, such as life, total and permanent disability, income protection, and trauma insurance.
With life insurance, your life is insured, but it is actually your family’s welfare that is addressed. When you die, your family or beneficiary will receive a certain amount of money. Life insurance is crucial, especially if you are the breadwinner of your family. This is so your family can still survive financially when you are no longer around to provide for them.
Total and permanent disability insurance protects you in the event that you become disabled totally and permanently. Those who get life insurance or trauma insurance usually get it as a form of additional coverage. So even if you are no longer physically capable of working, your financial needs will still be sustained.
In case you encounter an accident or acquire an illness and are not able to work for several months or even permanently as a result, your income protection insurance will cover you financially. You will still have food on the table, pay off your mortgage, and send your children to school.
It is actually more important to protect your income than your car or your home since it is estimated that you will make about one million dollars throughout your working life. Furthermore, recent statistics show that you are ten times more likely to be permanently disabled than die in your 30’s.
If you have been diagnosed with a serious illness, trauma insurance can help you out financially. Unlike income protection insurance, it is not dependent on your incapacity to work. Instead, it is dependent on the diagnosis of your illness. So, it does not really matter what your working status is.
With trauma insurance, you can receive a specific amount of money when you are diagnosed with a certain type of illness or injury. Usually, the list of illnesses covered is optional and tends to vary from one company to another. Similarly, the definitions of such conditions vary between such companies.
Some benefits of this insurance are subject to a qualifying period. A benefit can be given either on a stand-alone basis or as an advance payment for a death benefit. Typically, critical illness policies cover stroke, heart attack, coma, degenerative diseases, heart surgery, cancers, chronic liver disease, lung disease, kidney disease, paraplegia, and multiple sclerosis.
You will be paid with a lump sum of money instead of a monthly income stream. You can use the money in whatever way you want. There are no restrictions involved. The insurance company will not make demands or even ask you about how you plan to spend the money. When you get life insurance or health insurance, it is ideal to get insurance as well.
Private health insurance may not be enough to cover all your needs in case you incur a serious injury or illness. Most private health insurance policies only cover hospital expenses and certain medications. They do not cover rehabilitation, lost wages, long term nursing care, and home alterations.
With your insurance, you can pay for your debts and mortgage, nursing care, prostheses, car and/or home alterations, lost wages, overseas specialist or medical treatment, and accommodation and travel costs as you undergo treatment. You can also hire a housekeeper or a nanny to take care of your house chores. You can also use the money to pay for your children’s tuition fees. Furthermore, you can use the money to support your needs if you prefer to have an early retirement.
Getting an insurance policy is a smart move. No matter how careful you are, you still can never tell when you will get into an accident, injure yourself, or die. Nevertheless, insurance companies usually offer discounts to people who take care of themselves. So if you want to get the best rates, you should aim to live a good lifestyle.