What types of personal insurance are available?
Personal insurance is a type of coverage that provides financial security for you and your family in the event of a serious injury, illness, loss of ability to earn, disability or death. This insurance lets you maintain your way of living by providing payment to help pay any outstanding debts or everyday expenses.
The three common types of personal insurance include:
- Life insurance. This is designed to pay out your beneficiaries a lump sum if you pass away.
- Critical illness insurance. This provides you with a lump sum if you suffer a serious injury or illness as defined the policy.
- Disability insurance. This type of policy provides you with a lump sum if you’re injured or fall ill and are unable to work.
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.
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.
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: