In the ordinary course of life, one mostly tends to ignore the risks associated with its health.
Not only this, but you keep enjoying the luxuries of life with your regular income until the life gives you a reality check and this reality check in its most generalized form can be depicted as; a fatal injury, a grave illness, or death.
Not to mention that these contingencies can have a distressing consequence on one’s family finances.
So, what is the solution for it?
Well, having the right insurance policies help to secure a safety net around your family on the happening of an unforeseen event and thereby helps you regain your peace of mind.
Also, several types of protections are available to deal with different kinds of life risks.
In case of your death, life insurance ensures and safeguards the future of your family. For this you are required to pay, monthly or periodically premiums and this insurance will pay the lump sum amount on occurring of your death.
It is a great feature, especially when you are the sole earning member of the family.
Additionally, getting life insurance is highly advisable in situations where you have a mortgage. It ensures that the mortgage will be paid off just in case the unexpected happens.
It is of great help when you have a partner or dependants. For this, you may discuss with your agent, who may help you find an insurance policy that best suits your preferences and this way, you don’t have to accept the policy offered by your mortgage provider.
Furthermore, some kinds of life insurance on the death of the policyholder pay the amount into a trust, and then this money is used to compensate the tax bill.
Precisely, this way, it helps to reduce the effect of Inherent Tax. To acquire maximum benefits out of it, talk to your agent and ask him to arrange things accordingly.
On the happening of some grave illness or fatal injury that compels you to take long recovering leave, how would you and your family cover the loss that arises out of such situation?
And if the condition lasts longer, your employer won’t be able to pay sick pay till then.
So, what shall be the alternative plan?
To guard yourself and your family against such a situation, you may prefer income protection. Even though it can be costly and it can replace up to 75% of your earnings, by the time you turn to 65 and with this, it can keep paying you even if you never work again.
If you want a lump sum amount instead of a substitute income, then you can opt for serious illness insurance. This way, you will be reimbursed in the form of a single large payment in case you are diagnosed with a grave illness by a qualified doctor.
However, one must bear in mind that different insurance covers different kinds of illness and to get the best insurance in this regard let your adviser check all the details carefully.
With ease, for almost every kind of insurance, you can decide the lump sum amount that you require in return, but obviously, it implies that higher returns require a higher amount of premium. Talk to a financial adviser who has expertise in the matters of protection and get the kind of insurance that best fits your requirement.
With time, private healthcare is gaining popularity mostly among those, who can afford it and simultaneously, many providers include additional benefits such as dental plan.
The main benefit of going private is that possibilities are that you will have to wait less to access healthcare.
This means that on the happening of some grave illness or injury if you opt for private healthcare, you will get treated quickly and may get back to work soon.
Well, you will still need your financial adviser to figure it out whether private healthcare is worthwhile for you.
Almost all kinds of illness protection can serve and cater to the needs in times of devastating health condition. Private healthcare does not provide any sort of substitute income or cash benefit on tax, instead, it covers only your medical bills.
So, for a clear understanding, discuss it with your financial adviser and get to know the differences between private healthcare, serious illness cover and income protection.
Before opting for protection, it is very imperative to have an in-depth knowledge of how each product works, how and when would it pay, and how does it caters to your needs and corresponds to your attitude towards risk.
Even though there are several competing products on the market, comparing each of them is an intricate task as they are subject to personal circumstances.
Therefore, you should go for independent advice before choosing protection.
In this regard, your adviser can analyze your needs, your family conditions and the risks you are susceptible to and then search the whole of the market to get the best value product for you that caters to your need in an effective manner.
So, choosing the right life insurance policy is imperative for you as well as for those who are dependent on you to mitigate the losses and to yield the benefits.