Plan for the unexpected: Having a plan for when unexpected things happen is an important part of managing your money.
When you’re fit and healthy, it’s hard to imagine life changing. But what would happen if you couldn’t earn an income because you fell ill or became disabled? How would your family manage financially if you died? There are various types of insurance available which can ease financial difficulties should the unthinkable happen to you.
There are also policies called critical illness (also known as trauma), disability (or total permanent disablement insurance), and income protection insurances that pay out if you get a serious illness or disability.
Critical illness and disability policies typically pay you a lump sum of money if you’re diagnosed with one of the illnesses listed on the policy such as cancer, kidney failure, or heart disease. Income protection insurance pays a percentage of your income if you need to claim.
Insurance takes away some of the financial risks of unexpected events.
Top 5 things you need to know about Life-Insurance
- Every policy has different fine print including conditions and exclusions.
- Financial Planner can help find the right policy for you.
- Always tell the truth when making a claim.
- You can complain to the Insurance & Savings Ombudsman if your claim is declined unfairly.