While we wish for a fun-filled and smooth-sailing life with
no accidents, illnesses or damages to our property, the unexpected can
sometimes occur in the most unlikely of timing. These unexpected misfortunes
can wreck our lives or even the lives of our family members.
While we cannot predict the future, we can still prepare for
any misfortunes that might arise. One of the best way to do so is to get
appropriate insurance coverage to cover you financially for any accidents or
illness that fate can throw at you. You can also apply for appropriate
insurance schemes for your family members.
Insurance is thus necessary as it helps to elevate your
financial burden in the event an unfortunate accident were to occur. It also
lifts the financial burden your family will have to bear in the absence of
insurance. Insurance is thus a vital component of your financial health. The
key is to select the appropriate insurance plan for your varying financial
needs.
This article will touch on the key types of insurance
coverage that you can seek out for your respective needs.
Life Insurance
Life insurance policies will pay out a sum of money to your
beneficiaries (usually your family members) in the event of your death. This is
important especially if you are a key bread-winner of your family and your
family relies on your income for their daily living expenses.
Term Insurance
Term Insurance will pay out a sum of money to your
beneficiaries in the event of your death, but this arrangement is enforceable
for only a period (e.g. 5 years, or 10 years). Thus, term insurance is a
temporary policy that can be used as supplements to your life insurance policy.
Annuities
Annuities are usually beneficial for the retired or
old-aged. Annuity plans pay out a regular income (usually on a monthly basis)
that the retired or old-aged can use to cover their monthly expenses. Some
annuities have payouts that last until the death of the individual. A good plan
to have especially if you are expected to live a longer life after retirement
since the mean lifespan of individuals living in developed countries (and many
developing countries) are increasing statistically every generation.
Disability Riders
Pays out a sum of money to cover your medical and hospital
bills in the event of a disability (e.g. due to an accident). Disability riders
are usually created as an 'add-on' to your life insurance policies.
Critical Illness Riders
Pays out a sum of money to cover your medical and hospital
bills in the event of a critical illness. Critical illness riders are usually
created as an 'add-on' to your life insurance policies.
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