4 Common Types of Insurance For Holistic Planning

Because you work hard to achieve your dreams, ensure you’re prepared for the unknown. Plan holistically, by taking a look at these 4 Common Types of Insurances you can use to complete your Financial well-being:

1. Life Insurance

Provides a guaranteed death benefit to protect your dependants. There are three common types available:

i.Whole of Life (Permanent Insurance)
Life-long protection as premiums can be made throughout your lifetime. Upon death or in the event of total and permanent disability, the policy may pay out the greater of the sum insured or if applicable, the value of any underlying investment values.

ii.Level Term Assurance
Protection for a fixed time period. A Term policy may pay out the sum insured upon death within the term

iii.Decreasing Term Assurance
Provides a death benefit that decreases at a predetermined rate over the life of the policy. This may also be called Mortgage Life Insurance.

2. Health Insurance

Financial protection in the event extensive medical care is required as a result of an accident, illness or disability. There are 4 common types available:

i. Local Health Insurance
Medical Expense Insurance / Major Medical Expense Insurance
Covers medical expenses arising from an accident or illness. The policy typically includes inpatient medical treatment or surgery, some outpatient charges for day surgery and consultations with specialists.

ii. International Insurance
International Health plans provide more comprehensive coverage and internationally mobile, allowing you seek treatment anywhere in the world.

Some of the typical benefits offered:

  • Parent Accompaniment
  • Emergency Evacuation
  • Pregnancy Cover and Routine Complications
  • Road Ambulance

iii. Hospital Cash Insurance
Pays out a fixed amount of benefit each day you are hospitalised for medical treatment or surgery.

iv. Long Term Care Insurance
Pays out a monthly fixed amount towards expenses for long term nursing care when you are unable to perform daily activities.

3. Critical Illness Insurance

Reduces your financial burden when diagnosed with one of the specified critical illnesses or disabilities during the period of coverage by providing a lump sum payment.

4. Income Protection

Used to help bridge the gap when illness or injury stops us from doing our key function, providing an income for ourselves and our families.

Having briefly highlighted the 4 common types of insurance, the question is; do I need them all? Are there other types that could suit my unique considerations? Each individual differs and there is a right amount of cover that should be calculated such that premiums do not affect your living expenses. On this front, it is important to seek qualified financial advice for the right amount and right type. Let us connect you with a licensed advisor for an obligation free consultation.

Disclaimer: Advice should be sought from a licensed financial adviser regarding the suitability of an investment or insurance product before making a commitment to purchase.