Benefits and Types of Covers under Life Insurance

When you picture what life would be like if you stopped working, it seems uncertain.  If the unexpected happens to you as a breadwinner of your family, you will have to be proactive on ideas for survival. Luckily, some options make offer financial assistance during such times.

Whether it is an accident, ill health, death or loss of work; losing an income source could lead to dire financial stresses, uncertainty and challenges for the rest of your household. The same way you want to prolong and insure your car with car insurance is the same way you need to protect yourself with life insurance.

It can offer protection for your family during these dire times. However, you need to understand how life policies work. The plan involves a range of cover types which depend on the circumstances you are in. The brands available include life cover, also known as death cover. It pays a specified lump sum upon death, and the money is given to the beneficiaries listed in the policy.

The other is a total and permanent disability. It comes in bundled with life cover such that you get paid a lump sum of money to help cater for living expenses and rehabilitation when you are permanently disabled. The trauma cover, also known as critical illness cover gives you some amount when you develop certain conditions. Such conditions include heart attacks of a specified severity and malignant cancer. Income protection also protects you when you cannot work due to injury or illnesses.

As much as we do not think about the unexpected events of life, it is crucial to protect your interests with insurance. Some of the benefits of this policy are that the living standards of your beneficiaries are preserved in cases where you pass away or cannot work, it covers the cost of care and rehabilitation, it provides for your family and meets ongoing financial obligations like loans when you cannot work.