In the event of a serious illness or injury, total and permanent disablement, loss of ability to earn or death, personal insurance serves as a type of cover that provides you and your family with the needed financial security.
Through this insurance, you and your family will be provided with the necessary payment that will cover for everyday expenses and any outstanding debts so as to maintain a standard way of living. There are for major types of personal insurance, they include income protection, critical illness insurance, total and permanent disability insurance, and life insurance.
You could cause yourself more headaches if you are faced with many different types of insurance policies. Fortunately, all these insurance policies have been divided into four major categories so as to make things easier and simpler for you without passing through the stress of sorting through them.
What You Need To Know About Personal Insurance
Income Protection Insurance
Income protection is a financial cover that provides you with a steady stream of monthly income. It serves as a great assistance during any one your life’s most stressful times such as temporary unemployment. It can also be used to pay rent, mortgage, and daily expenses such as food and bills. It pays you 75 percent of your gross monthly income. However, it still remains one of the most overlooked types of insurance policy.
Upon diagnosis of a traumatic medical condition such as cancer, heart disease or stroke, critical illness insurance can be used as a cover to cater for you. Also known as Trauma Insurance, critical illness insurance can cover up to 40 different types of medical events. As a type of living insurance, you do not have to die before you can benefit from it.
Total and Permanent Disability Insurance
The financial freedom that would have been very difficult to achieve at a disabled state is provided by Total and Permanent Disability insurance through a lump sum payment that will cater for all the costs and expenses you incurred if you become permanently disabled, as a result of injury or serious illness.
As one of the oldest existing types of insurance, life insurance was designed primarily to offer coverage for terminal illnesses with life duration of only 12 months or in an event of death. Life insurance pays a chunk sum benefit to your family or financial dependant that can be used to pay for funeral expenses, mortgages, extra expenses for family needs and other financial obligations.
All available insurance plans in the market have been summed up together to establish these four types of insurance. Although they may seem to have similar benefits and features, they have been designed for the singular purpose of providing you with protection and total peace of mind. So depending on your needs and the risks you might be exposed to, you can separately purchase any one of these personal insurances.