Advancements in medicine now make it possible to survive cancer, stroke and heart ailments, diseases that were once immediately life-threatening. But while this is the case, someone afflicted with these infirmities may still need to undergo long recovery periods. This can then affect their capability to provide for their family. The likely negative impact of such life-changing events can be mitigated by life insurance.
Life insurance for More than Death
Most of us equate life insurance with death cover, but there are additional covers under life insurance which pay out benefits for certain infirmities.
Income Protection Cover
You can count on certain monetary benefits with this cover in place. They can be paid out either in lump sum or periodically, when you get injured or ill and become temporarily unable to provide for your family.
You can decide on the amount of income to insure. However, most insurers will normally only cover up to 75% of your pre-injury or pre-sickness income. You can choose the length of payout as well. Of course, the bigger the amount and the longer the payout period, the higher your premiums will be. This is why it’s important to compare life insurance, especially when considering income protection cover.
Trauma Cover is another add-on which can offer major financial help in times of sickness. This insurance is also sometimes called Critical Illness Cover. This pays a lump sum amount if the policyholder is diagnosed with specific infirmities such as cardiovascular diseases or cancer. One doesn’t have to be terminally ill to claim.
Total and Permanent Disability (TPD) Insurance
This pays benefits when the policyholder is unable to pursue any type of gainful work due to permanent disability. Typically, the payment is in a lump sum amount, although periodic payments may be arranged with the insurer as well.
Take the time to read the product disclosure statements, because there are certain conditions that may not be covered by TPD. A permanent disability brought about by participation in a risky hobby or sport is one example.
Life Insurance and Your Finances
Sure, you can always set aside a savings account to leave for your family in the event of your death or serious illness. But this strategy may drain financial resources, as you’d have to reserve a significant percentage from your monthly earnings if you’re to match average life insurance amounts.
With life insurance, all you need to do is to pay the premiums dutifully. You can then rest assured your family will have something to turn to should you be afflicted with a long-term illness and be incapable of providing for them.
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