Loss of life and property has become a common occurring incidence today, thereby justifying the increasing need for risk management to provide insurance of life, property and other needful resources. There are different types of insurance, namely, home insurance, casualty insurance, liability insurance, health insurance, life insurance, personal insurance, and so on. Personal insurance is purchased to provide cover for your own or your family’s needs. The amount of personal insurance cover that you need depends on a number of personal circumstances, especially your financial commitments, your age, your general life expectations, and so on. Given here are some types of personal insurances that you can consider while insuring you or your family. Read on further to know them.
Different Types Of Personal Insurance
Life insurance provides a certain amount of monetary compensation to the deceased’s family or legal heirs. It intends to support your family, be it spouse, children or others who are financially dependent on you, after you die. The amount stated in the policy is either payable to the estate or to the beneficiaries listed in the policy.
Total & Permanent Disability Insurance
In case the insurance policy holder, at any time during the term of the policy, becomes incapacitated due to illness or injury, which prevents him from leading a normal life and earn for the survival of self or family, the company provides disability insurance in relieving the financial pressure. However, if he becomes permanently incapacitated due to the illness or accident, then he is benefited with the total & permanent disability (TPD) insurance. This insurance is often combined with life insurance as an option.
Critical Illness Insurance
Any major illness suffered by you or your family is covered under the critical illness insurance. In case you or your family suffers from any critical illness, such as heart attack, stroke or malignant cancer, you are provided with a lump sum payment for the treatment that can otherwise take a toll of your finances.
Income Protection Insurance
Considered as the most important form of insurance, income protection insurance provides its bearer with a monthly payment in case of any prolonged absence from work, due to sickness or injury. Hence, this insurance seeks to protect you from financial disasters. Income protection insurance is significant as it helps you to repay obligations, such as a mortgage or other debts, which may otherwise be difficult without your income. It also comes as a rescue for self-employed people to provide any sickness benefits, who are not protected by their employer.
Health insurance covers all the expenses incurred in private medical treatment. The main advantage of health insurance is that a person can avail the best treatment from medical centers with better facilities, without worrying about the money charged.
Auto insurance, also known as vehicle insurance, covers the risk of theft or damage of the car. Any damage caused to the car during an accident can also be claimed under auto insurance. Auto insurance provides property, liability and medical coverage.