3 personal insurance options that can protect you and your loved ones

The three common types of personal insurance coverage

They may have similar features and benefits, but they have all been designed for one purpose — to give you peace of mind and protection.

They can be purchased separately or as a package depending on your needs and the risks you are exposed to.

1. Life Insurance

Life insurance is one of the oldest types of insurance in existence. It was also the first to be made readily available to the general public. There are two types of life insurance; whole life and term life.

• How long can I be covered for?

  With term life insurance, you have the flexibility to choose the period of time you would like to be covered for, while whole life insurance provides coverage for the rest of your life.

  When deciding the right term for your situation, it’s important to assess your short and long-term financial commitments, future expenses and how long you want to continue providing for your family.

• What can life insurance be used for?

  Life insurance was primarily designed to provide coverage in the event of your death or if you have a terminal illness, with only 12 months to live. It pays a lump sum benefit, which can be used in any way your financial dependents deem to be necessary.

  Life insurance proceeds can be used by the family to:

  • Pay for funeral expenses
  • Pay off a mortgage and other debts left behind
  • Pay for any other extra expenses your family might need
  • Provide an income for your spouse should they decide not to work anymore

Learn more about how life insurance works

2. Critical illness

Critical Illness insurance pays you a lump sum upon the diagnosis of a traumatic medical event such as heart disease, cancer or stroke. This type of insurance provides an alternative source of funding to your financial commitments, so that you can focus on getting better.

• What does a critical illness policy cover?

  A critical illness policy can cover up to 40 different types of medical conditions. However, it’s important to note that the definition and medical events covered may vary from provider to provider.

  It’s essential to ask your insurance provider what is and isn’t included in your policy.

• What can critical illness be used to pay for?

  Critical illness insurance can:

  • Pay for your medical expenses
  • Purchase medical equipments to aid in recovery
  • Help pay rehabilitation costs

  • Cover cost of a nurse or housekeeper
  • Provide extra income for your family

3. Disability insurance

Disability can provides a lump sum payment to help you cover expenses when it’s likely you’ll be out of work due to disability, serious illness or injury. This lump sum benefit can be used by you and your family to:

• What can disability insurance be used to pay for?

  • Pay for medical expenses
  • Pay for your rehabilitation costs
  • Cover cost of a nurse or housekeeper
  • Modify your home or vehicle to cater to your new condition
  • Keep up with living expenses and other financial commitments

• Are there any exclusions?

  Each policy will vary depending on the insurance provider. Always inquire about any exclusions in the policy such as a pre-existing condition or if you were to suffer an injury as a result of partaking in a dangerous hobby. You should always know exactly what you and aren’t covered for.