Five Types Of Insurance Policies You Must Have | ExpatWoman.com
 

Five Types Of Insurance Policies You Must Have

If you have dependents, here are the five types of insurance policies you must have.

Posted on

22 April 2014

Last updated on 14 May 2018
Five Types Of Insurance Policies You Must Have
Insurance is the best way you can financially safeguard yourself and your family against the uncertainties of life. Should something untoward happen to you or your important assets, possessions, and earning power, your insurance policies can help alleviate the associated financial setbacks.
 

As any qualified financial adviser will tell you, insurance forms an important part of every comprehensive financial plan. If you are looking to take stock of your financial health and planning ahead for the future, insurance should feature prominently in your financial plans.

There are various types of insurance policies available in the market, offering different levels of protection and covering different types of requirements. It is important you understand which insurance policies you essentially require, and which ones you can do without.

SEE ALSO: Is Dubai the Best Place for Your Pension?

However, if you have dependents, here are the five types of insurance policies you must have:

Life Insurance will financially support your family and dependents in the event of your untimely demise. It is important you take a life cover that replaces your income and pays for your funeral costs. Choose a life insurance policy considering the amount of money your family would require per year in your absence and the number of years they would require this financial support for. Check these tips to get the best deals on your life insurance policy.

Medical Insurance is an important type of insurance that will protect you from the ever-increasing cost of medical treatment. Whether you purchase your own medical insurance policy or your employer provides you with a medical cover, this is one type of insurance you are guaranteed to utilise a few times a year. Without a medical insurance policy, your visits to the doctor, medicine, and surgeries will cost you a fortune over a long period of time.

Home Insurance cover provides financial support in case your home suffers damage due to various causes covered in the policy. Since repairing or replacing a damaged structure is a costly affair, the right home insurance policy can considerably ease the financial burden if your home gets damaged. A comprehensive home insurance cover will pay out for the repair and replacement of the structure and contents and cover the cost of living somewhere else till your home is repaired.

Critical Illness Insurance is fast becoming an important type of insurance owing to the high incidence of critical illnesses among people in the recent years. It covers critical illnesses like Cancer, Stroke, and others, and pays out a tax-free lump sum upon diagnosis to cover the costs of medical treatment, ongoing medical care, and replacement of lost wages for time off work. If you have the right plan and stay healthy, you can get back every premium paid into the policy.

Long-term Disability Insurance pays out in case you suffer from a long-term disability from a disease or accident that hinders your work and affects your income. It pays a regular amount, usually a percentage of your earnings before disability, to cover for your requirements until you are able to resume work or retire permanently.

 
 

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