What is Personal Insurance?
Personal insurance is a special kind of cover that is tailor-made to offer security to an individual and their family when risks arise. Such risks include illnesses, disability, and even death. With an insurance cover, one can absorb the financial strain caused by the risks and sort out their daily expenses.
Different kinds of insurance covers are available to clients today. Insurance covers are particular when it comes to the risks they cover and the enforcement policy. Understanding how the various policies works are, therefore, essential before taking up any insurance cover.
Life Insurance
This is one of the oldest types of insurance covers. The primary goal of the policy is to cover life. Once an individual takes up the cover, beneficiaries receive a lump sum amount upon the death of the policyholder.
The policy offers a guarantee of financial security to beneficiaries in the event of death. The policy also incorporates a savings clause. The savings element is very beneficial to the policyholder. It enables them to purchase and negotiates better terms of their pension arrangement to enjoy more financial benefits in the future.
Total and permanent disability (TPD) insurance
This is a policy that is disability oriented in the sense that, the policyholder receives a lump sum amount as compensation if they become permanently disabled. The policy offers protection from injuries that are as a result of accidents or even illnesses that hinder a person’s full working capacity. For the policyholder and beneficiaries, it offers financial relief for the family when misfortunes arise and the policyholder is rendered disabled.
Critical illness or trauma
Medical illnesses can be devastating both psychologically and financially. The critical illness insurance policy pays a policyholder a lump sum amount of money if they are diagnosed with a traumatic medical condition. Such conditions include cancer diagnosis, heart disease or even stroke.
Compensation from the policy offers a vital source of funding that helps the policyholder foot their medical and other financial bills as they seek treatment for their ailments. The good thing with taking up the cover is that you enjoy the benefits while you are still alive.
Income protection insurance
This is a very strategic cover which most people tend to overlook. The cover offers financial security to the policyholder in the event of temporary unemployment. Temporary unemployment may arise due to misfortunes such as injury or even illness that can leave one unable to work temporarily.
During periods of unemployment, financial obligations can quickly end up overwhelming an individual. One may be forced to even result in using their savings to cover for their day to day expenses. Such spending may leave one broke and with no form of financial security.
An income protection policy offers an individual the much needed financial backup during such trivial times. Emotional and financial stress is relieved, and one can weather the storm before getting back to the employment bandwagon. You never know when unemployment will strike. Taking up such a cover is, therefore a decision which any employed person should take seriously.
In the event that you need to find out more about Personal Insurance, get in touch with us today. We are happy to meet you anywhere in Perth and talk about how our insurance solutions can help you.