Does Your Insurance Portfolio Include These 6 Areas of Coverage?
A solid insurance portfolio is like a trusty Swiss Army knife. You only need coverage in 6 areas to settle all your risk protection needs:
- Death
- Total permanent disability
- Hospitalization
- Critical Illness
- Accident insurance
- Disability income
Credit: Photo by Patrick on Unsplash.
"With these areas covered, we can have peace of mind knowing that there is a specific tool giving us protection from whatever life throws at us"
1. Life insurance pays out upon death which can
potentially take care of any outstanding liabilities and also provide for the
family.
2. Total permanent disability is defined as the
loss of two limbs, two eyes, or an eye and a limb. A TPD rider unlocks the
death benefit should the policy holder suffer from such a loss. The lump sum
payout can facilitate adjustment to their new circumstances.
3. Hospitalization policy allows reimbursement of
up to 95% of hospital in-patient ward and surgery bills as well as for
subsequent outpatient treatments.
4. Critical illness plans pay out a lump sum upon
diagnosis. Claimants are not restricted in how they wish to use the payouts.
This allows flexibility in seeking alternative medical treatment, taking the
family on a trip together, or supporting the family when no longer able to
work.
5. Accident policies offer a lot of utility
because minor accidents occur much more often than you think. Think back, when
was the last time you cut your finger, had a sports injury or had to tend to an
injury sustained by yourself or a family member? Accident policies are like a
giant band-aid that can be applied onto any unforeseen injury.
6. Disability income should be considered as 1 in
2 Singaporeans aged 65 could become severely disabled in their lifetime. Not to
be confused with TPD, this type of insurance provides policy holders with an
additional stream of income should they suffer some form of disability. Such
disabilities can be further grouped into occupational disability, and long-term
care.
With these areas covered, we can have peace of mind knowing that there is a specific tool giving us protection from whatever life throws at us. I hope this article has shared some light on the topic of life insurance. Should you need someone to look over your insurance portfolio, do reach out to one of our Excelsior Financial consultants.
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“You are your best investment, but always have
a Plan B”