How to Protect your Property and Yourself
Introduction
How do you protect your assets, such as your property and yourself against any adverse conditions?
Suppose you recently took a home loan to purchase a property. In that case, the lender must get you to take on building insurance to protect your property when there is a fire, flood, storm, explosion, riot, or earthquake. But how about protecting yourself from adverse conditions such as death, total and permanent disabilities, and major illness such as cancer?
Protecting Yourself and Your Family
People always think about protecting their assets such as houses and cars but do not invest enough in themselves.
Depending on your circumstances, for example, if you are the only sole breadwinner, it might be a good idea to have life insurance to protect you from debt, as life can be unpredictable sometimes.
In general, there are three types of insurance products that can protect you from different events:
1. Life cover pays a lump sum amount of money when you die. The money goes to the people you nominate as beneficiaries of the policy.
2. TPD insurance pays a lump sum if you become totally and permanently disabled because of illness or injury.
3. Trauma insurance, also called ‘critical illness’ or ‘recovery insurance’ pays a lump sum amount if you suffer a critical illness or serious injury. This includes cancer, a heart condition, major head injury or stroke. Trauma insurance does not cover mental health conditions.
The details of what is covered under the insurance policy and medical conditions can be different between insurance providers. Please do read your product disclosure statement before taking on any policy or do speak with your financial planner in more detail.
I hope this article has been useful and has given you a basic insight on how you can hedge against such risks.
