Life involves risk. There are some risks that are fun, and some that suck. The ones that suck keep us up at night. We can lie there thinking about what could go wrong - the ‘what if’ analysis. If we don’t come up with a solution or start counting sheep, then we could be awake for a while.
The ‘what if’ scenario analysis we conduct on our bed in the early hours of the morning could be wondering what we would do if: I/my spouse become ill or someone drives into my car and I can’t work?
Wouldn’t it be great to be able to quieten some of ‘what if’ thoughts with ‘we have a safety harness in place’ and ‘our finances are protected from a fall/illness’.
That is what life and disability insurance can do - provide the safety harness. Below are some different types and how they can help.
Income protection (IP)
Income Protection (IP) insurance provides a monthly payment if you’re unable to work due to an illness or injury. You can use the payments however you wish: to cover household expenses like mortgage repayments, groceries or bills, to support your family (with school fees, for instance), or for rehabilitation services to help you get back to work.
Trauma or Critical Illness insurance provides a lump sum payment if you suffer one of a range of serious illnesses listed in the policy, such as a Heart Attack (of specified severity).You can use a Critical Illness payment however you wish: for medical services and treatments, for support or ongoing care at home, or to cover living costs and household expenses so you can focus on your health.
Total and Permanent Disability (TPD)
Total and Permanent Disability (TPD) insurance provides a lump sum payment if you become totally and permanently disabled due to sickness or injury, and are unable to work again. You can use a TPD payment however you wish: for medical services and treatments, ongoing care at home, or to cover living costs and household expenses so you can focus on your health.
Life insurance provides a lump sum payment when you die or if you’re diagnosed with a Terminal Illness. Your family can use that payment however they choose: for day-today living expenses or mortgage repayments, to cover your kids’ school fees or to provide security for your partner’s retirement.
The value of your sleep can’t be put too highly. Health experts link lack of sleep with ill health and weight gain not to mention the ‘tired and grumpy’ behaviour. Chocolate may help but how much?
So we could get cover, but how much is that going to cost? Our blog post on 6 ways to save on IP insurance premiums will give you some ideas of how it is possible to quieten the ‘what if’ without breaking the bank.