Life Insurance, Critical Illness Insurance, Income Protection & Mortgage Protection, quote, quotes

Types of Insurances

Life Insurance, Critical Illness Insurance, Income Protection & Mortgage Protection

There are several types of insurances. These insurances include; Life Insurance, Critical Illness Insurance, Income Protection Insurance, Accident Sickness Insurance and Mortgage Payment Protection Insurance (MPPI). The following is a brief overview of the five insurances and what they offer to the policy holder.

Life Insurance | Life Assurance

Life insurance policies vary by age. The amount of insurance that you purchase should depend on your needs and your living standards. You will also need to consider the amount of income that is available to your dependants in the event that you pass away. There are two types of life insurance. Term life insurance provides protection for a length of time that is specific. The period could be up to 20 years. Permanent Life Insurance is designed to protect you as the policy holder over an entire lifetime. Another type of life insurance is life assurance. Life assurance is designed to designate a sum of money to your beneficiaries upon your death or because of an illness that is terminal or critical. Life insurance can be used for several purposes. It can be used to pay off your last debts or medical bills, your children’s education, provide monthly incomes for your dependants until they are out of school, provide a retirement fund of your spouse or children or to provide income to your spouse until they are able to adjust to their new standard of living once you have passed away. Life insurance will help to bridge the gap between what is available to your dependants and spouse from other sources and their individual income status. You may not be able to physically provide for your family once you have passed away but having life insurance can help them to financially cope with your absence.

Critical Illness Insurance

Critical illness insurance in designed to provide payments to you if you are critically ill. This type of insurance is made in a lump sum that can be spent to pay bills or in any other fashion that you deem necessary. Medical conditions that will qualify you for this insurance include serious injuries, major surgeries or a disease. You can purchase Critical Illness insurance in several ways; you can purchase it as an individual policy, as part of your workplace benefits, as a supplemental health insurance policy or as a supplemental life insurance policy. There are many different conditions that are covered under this form of insurance. They include but are not limited to; heart attack, kidney failure, paraplegia, stroke, angioplasty, loss of hearing, sight or speech, cancer that has spread, cancer that has not spread, heart valve surgery, severe burns, multiple sclerosis, blindness or deafness, coma, coronary artery bypass graft, aortic surgery and Alzheimer’s disease. You may choose to use this money to pay medical bills or to provide necessary equipment or retrofit your home for such things as ramps or to purchase a wheelchair in the event of paraplegia. You may need to make claims in multiple categories. You could be covered under one category for cancer and another for kidney failure or heart conditions. You may have the option to pay for a policy that covers all of the categories or to purchase insurance for just one. You may not be able to prepare for a critical illness completely but some of the burden can be lifted with a critical illness insurance plan.

Income Protection

Income Protection Insurance is an insurance policy that you can take out to protect you from lost wages in the event that you are not able to work due to an illness or disability. These policies include protection for; credit cards, mortgage payments, loans and complete loss of income. Income Protection Insurance generally caps off at 60% of your income. This money is free from taxes. There are however several things that are not covered under this type of insurance. If you are still receiving income from your employer you are not eligible to receive this form of insurance. Other conditions include a pre-existing medical condition, participation in dangerous sports that are not specified in the insurance policy agreement, alcohol and drug abuse, pregnancy or child birth and self injury. Another form of insurance that you may consider if you are unable to work due to an illness or injury would be Redundancy Insurance. Redundancy Insurance will cover you if you are unable to work because of an illness or injury but will also protect you if you have lost your job due to the downturn of the economy. A third type of insurance that you may consider is Unemployment Insurance. Unemployment Insurance will also cover you if you are unemployed but offers a wider spectrum of circumstances in which you are eligible for this coverage. Having the options for these coverage types will lift some of the stress of being unemployed. Knowing that these options are available will decrease the stress of being unemployed.

Accident, Sickness &Redundancy

Having Accident Sickness Insurance will supplement the benefits that are not covered under your general insurance for injuries due to an accident. You have the ability to select the amount and level of coverage that is appropriate for you and your needs. Some of the benefits that are included in Accident Sickness Insurance are; hospital admissions payment, intensive care, emergency room treatment, outpatient surgeries, ambulance transportation, family lodging and medical appliances. There are also several minor accidental injuries that may be covered depending on the level of benefits that you have selected. These include but are not limited to; concussion, physical therapy, fractures of the nose, teeth, fingers or toes and health screenings. This type of insurance is beneficial because it covers for such things as accidents and some sicknesses as well if you will need to be hospitalized or taken to the emergency room. Some reasons for ineligibility include; age, HIV status, mental condition and pre-existing conditions. While these are not the only types of things that will determine your eligibility they must be considered. Payments by the insurer for these policies can be made weekly, bi-weekly or even monthly. There are affordable policies out there from various providers. Make sure that all of your needs are met by the insurer before settling on a specific plan. There are many cases where accidents and sickness cannot be avoided. Ask any questions you may have before settling on a policy. Having this option for insurance will help you to ease the burden of these circumstances.

Mortgage Payment Protection

There are many reasons for needing Mortgage Payment Protection. Accidents and illness are a couple of these reasons. Having an insurance policy that will take some of the burden off of you in times of financial problems will help in more ways than one. Mortgage Payment Protection Insurance can be taken out to cover your mortgage payments over an extended period of time. This is typically 12 months. If you are unable to work due to an illness or other health reason taking out this form of insurance will help you to pay your mortgage on time. The cost of this insurance varies considerably between companies. Mortgage Protection Insurance is another form of protection. While a different name is used it is the same form of policy. Some home owners take out the first policy that they come across. You will be required to pay a premium for Mortgage Protection Insurance and should do your research before making your decision. The premium for this policy will stay the same during the duration of your policy and should not change. You may choose to go with Private Mortgage Protection Insurance. This type of insurance is most often bought by first time homeowners that are unable to put at least 20% down for their first home purchase. The cost of a policy can be high but it does have its benefits. Among those benefits is the reality of homeownership for people that may not otherwise be able to purchase a home and avoidance of a large down payment. This option is useful for low income families as well.

Depending on your circumstances and individual needs these five insurance options can be very useful for various reasons. Whether you have lost your job, had an accident or are preparing and setting aside funds for your family when you pass away it is very helpful to know that there are insurance plans that will meet your needs. Make sure that you check various sources and companies before settling on your policy. Find the best premiums and do your research and you will find the policy that is right for you.

Latest Life Insurance Articles

What is mortgage life insurance ?
Mortgage life insurance is a form of life insurance you would take to cover the outstanding amount on your mortgage should you die. The prinicple behind the plan is that it would pay off your mortgage should you die.

Do I need life insurance ?
Life Insurance is a recommendation to anyone who wishes to protect any liabilities that they may have should they die. What a lot of people don't realise is that should you die your liabilites will be passed to your estate.

Can I take joint life insurance ?
Yes, you can take joint life insurance, this is normally done on a joint life first death basis. Most people with joint liabilites will take joint life insurance as it will guarantee the liaiblity is paid off should one of the parties die.

What is critical illness insurance ?
Critical illness insurance is a a plan that can cover you for a number of specified critical illnesses should you contract one during the policy term. They are often combined with a life insurance plan.

What changes the price of my critical illness insurance ?
There are a number of things that effect the price of the insurance, smoker status, occupation, sex, health, age and the length of cover and how long you wish the term to be.

Are my children covered in my critical illness insurance ?
In the majority of cases depending on the plan that you take children will be covered. They will not get the full plan however they will normally recieve a proportion of it.

What is income protection insurance ?
Income protection is a plan that will pay a monthly income should you be incapacitated i.e be unable to work due to sickness or accident during the policy term.

What can I add to my income protection ?
You can choose to add waiver of premium to your plan, this would mean that your premiums would be paid if you were to make a claim. You can also choose to index the plan.

What age should I take income protection to ?
If you take income protection insurance you should consider taking it to your retirement age. Income protection is normally a long term plan and should not be confused with ASU.

What is terminal illness insurance ?
Terminal illness insurance is included in some plans and is where the plan would pay out prior to you dying however it has to be confirmed by a medical practioner you have less than 12 months to live.