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Life is surprisingly unexpected. Make sure you’re safe.

Life is surprisingly unexpected. We must make wise decisions to reduce the hazards that surround us, and while some things are beyond our control, many financial precautions are quite simple to implement. For the majority of life’s curveballs, there is an insurance plan that can financially assist you and your family.

Life is surprisingly unexpected. Make sure you’re safe.

Protect your life

Life insurance is meant to provide you with the assurance that your dependents will be taken care of if you die away. It might pay your dependents in one big sum or over time. The amount of money paid out is obviously determined by the type of coverage you choose, and you may choose how it is paid out and if it will cover particular expenditures such as a mortgage or rent, among other things.

If you have a mortgage, which is likely to be your largest financial commitment, you may want to consider Mortgage life insurance (also known as mortgage protection), which is a type of life insurance that pays off your mortgage if you die. Because it is tied to your mortgage, the amount covered decreases as you pay it off, making it a more affordable form of life insurance.

If you have a family and your income is completely or partially reliant on you, you should carefully consider life insurance.

Protect your income

Income Protection plans are meant to help you if you are unable to work due to an accident, injury, or illness, or if you lose your job for no reason. If you are unable to work, the insurance gives you a regular income, generally in monthly instalments of the half to two-thirds of your monthly salary.

You may suffer from invincibility syndrome and believe you don’t require income protection, but common sense dictates that you should always have a Plan B and consider income protection. How long can you survive if you are out of job for whatever reason and have no income? How long until it’s difficult to pay your bills, mortgage, and other expenditures while maintaining your existing lifestyle? The realistic choice would be to create a backup plan.

There are two sorts of income protection policies: those that last forever until you are able to return to work and those that last for a set length of time (usually 12 to 24 months). There is frequently a waiting period before payments begin, so keep that in mind and make sure you have enough funds to sustain yourself for however long your policy’s waiting period is.

If your household is entirely or partially reliant on your income, you should have this. If you’re self-employed, it’s a must-have.

Protect yourself in case of Illness

A policy that covers certain dangerous illnesses mentioned within the policy, such as stroke, heart attack, certain types and stages of cancer, Multiple Sclerosis, and may include permanent impairments as a result of accident or sickness, is known as critical illness cover/insurance. If you get one of the specified illnesses, the insurance will give you a tax-free lump amount that you may use to cover your regular expenditures as well as any additional costs related to the sickness.

It’s crucial to note that Critical Illness Cover and Income Protection have some overlap; thus, before applying for these policies, talk with a reputable broker to ensure you obtain the proper level of coverage.

If you don’t have enough money to go through a major illness, if you’re self-employed, or if your employer’s sick pay isn’t enough, you might want to consider Critical Illness in addition to income protection.

Which policy?

Here are some questions to ask yourself to help you figure out what amount of protection you require.

  • Is your family depending on your income entirely or partially?
  • What would your life be like if you couldn’t work?
  • Is your sick pay adequate to help you survive a major sickness or injury if you’re employed?
  • What would it imply if you were self-employed and were unable to work due to illness or injury?
  • Do you believe government assistance might help you get by if you were laid off unexpectedly, or if you were involved in an accident or had a terrible illness?
  • How would things look (financially) for your dependents if you were hit by a bus tomorrow?

How can I decide?

To begin, you must completely comprehend the risk you are attempting to reduce – this, as difficult as it may be, try to envision the circumstance you’ll be covering and consider everything you’ll need in that case. Consider what your income means to your family and what long- and short-term costs would need to be paid if you weren’t around when purchasing life insurance. Similarly, assume you had no income and develop a list of critical costs for income protection.

Then, make sure you acquire your insurance from a reputable broker and read the policy’s terms and conditions thoroughly. You must verify that all of your criteria are satisfied, as well as know exactly how much you pay each month and what to expect if a claim is filed.

Check the insurance for exclusions for pre-existing medical problems. Finally, payments may be subject to a waiting period, so make sure you are aware of this.

Illness, unemployment, and death are all facts of life. How would your family survive if you became very ill and were unable to work, or if you died suddenly? Who would pay the expenses if you lost your work unexpectedly? When there is protection available, don’t put yourself in danger.

About Author

Mariusz studied in Poland and the UK and graduated in both banking and logistics. He has worked in the finance sector for many years and since 2017 he has been professionally advising clients on insurance products and mortgages.

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