Protecting your most important assets is an important step in creating a solid personal financial plan. The right insurance policies will go a long way toward helping you safeguard your earning power and your possessions. The six insurance policies you must have are: 1. Long-Term Disability Insurance The prospect of long-term disability is so frightening that some people simply choose to ignore it. While we all hope that, “Nothing will happen to me,” relying on hope to protect your future earning power is simply not a good idea. Protecting your present and future income source provides you with a sure way of ensuring that even when you are disabled and not working, you can continue earning and maintain your current lifestyle. Hence, the need for a Personal Accident Policy. 2. Life Assurance Life assurance protects your family - spouse, children - parents, or other loved ones who would face financial hardship if you died, or became permanently disabled, since they are financially dependent on you while you are still alive. How much insurance should you buy? Think about how much you earn annually (and the number of years you plan to remain employed) and purchase a policy that will replace that income in the event of your untimely death and/or permanent disability. Life assurance policies include education, endowment, term life, and whole life. 3. Funeral Insurance Rider The soaring costs of burial expenses make funeral insurance a necessity. Transport and morgue expenses can result in hefty bills – possibly more than the price of a one-week stay at a luxury resort. Therefore, it makes sense to purchase a life cover with a funeral rider option. 4. Personal Retirement Plan A Personal Retirement Plan is about making the most of your retirement future. It is essentially a tax deductible investment plan that provides an income on retirement. The money contributed by the contract-holder is invested and the fund accumulates to become your retirement fund. 5. Motor Accident Injury Insurance Since accidents happen and the results are often tragic, there are several insurance cover options available, such as Term Life Assurance, Endowment Life Assurance, Whole Life Assurance and Personal Accident Solutions. 6. Business Insurance To safeguard business interest and perpetuity, business owners such as sole proprietors, partners, chief executives and senior managers in corporations, need various insurance solutions. Among these are Keyman Assurance, retirement plans, etc.
Posted on: Wed, 03 Jul 2013 09:13:53 +0000
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