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Protecting Your Entire Family


You and your spouse may be earning a steady income that’s quite comfortable for yourself and the rest of your family. However, are you taking this for granted? That’s simply because one major untoward incident like death, accident or critical illness, could take away that comfort and send your family members’ lives spiraling into distress.

Death, accidents and critical illness are just 3 of the many different unexpected things life can throw at us, and there are separate types of insurance / takaful protection plans to cater to these various instances. So, having the right insurance / takaful policy in place can give you and your family peace of mind, thanks to the safety net provided by the policy.

Let’s explore a little more into a couple of the possible tragic scenarios.
1. In the unlikely event that you or your spouse passes away…

Life insurance or Family takaful will pay out a lump sum to safeguard your family’s future. Such insurance providers and takaful operators generally have a good record of paying out on the claims. The amount of monthly or annual premium you pay for the policy, will determine how much is paid out in the event of your passing.

If you have loans, it is highly advisable that you do take up  life insurance / takaful, especially if you have dependents like a spouse and children. You would not want to leave them the burden of repaying those loans. The loans can instead be settled with the claim pay out. So, it’s also important that you take into account the total amount of your loans, when deciding the sum insured. This includes everything from housing loans, to car loans to perhaps even study loans.

Besides paying off your loans, the lump sum given to your family can also help them cover their day-to-day expenses like food and groceries, particularly if you are the sole breadwinner of the family. They sum assured should also take into account things like your children’s schooling fees and such. It may not be enough to sustain them for a lifetime, but it should be enough to give them time to get back on their own feet, which may sometimes even take a few years.
2. In the unlikely event that an injury or illness prevents you from working…

Your company or employer may provide sick pay, but this is only for a very limited period. Should your injury or illness prove to be slightly more long term, you would have to look at other alternatives for income.
One of the options that you have would be the accident and sickness insurance. This type of policy would provide you a regular income, but only up to a maximum of 12 months.

Another option is income protection, which is costlier but it involves pay out for an unlimited time. It will replace between 50% and 70% of your salary until you’re able to work again. So, if you’re never able to return to work, the money will still continue to be paid out.

However, if you prefer getting the money in one lump sum, then critical illness insurance / takaful is the choice for you. It will cash out a single large payment for certain qualifying conditions that would have been outlined in the policy. They usually include illnesses like heart attack, stroke, cancer and multiple sclerosis, among other things.
3. Choosing the right protection…

There are many options of insurance or takaful available for different scenarios and there are also many things to take into account when considering between those choices. We can help you get the right financial advisor who can find the best combination of insurance policies that would suit you and your family.

The advisor would weigh how much of loans you have; how much is your family’s daily expenses; and what are the current and future needs of your family members, to come up with the sum assured you need to have under your insurance / takaful. This will then be balanced out with the amount of premium that you are able to afford.

Such advisors do this by searching the entire market for the perfect or at least close-to-perfect product for you.
This means you don’t have to go through the hassle of checking what’s being offered by each insurance provider yourself.

Having the finance well planned helps you and your family to overcome any financial difficulties. Moreover, having one plan for you alone is not enough. You must choose the best plan for you and your family looking into all possible factors can ensure that you and your family are secured.

Posted by admin on 05 June 2018

Filed under: #Family, #Protection