How to Protect Your Self and Family Through Best Insurance Policies
Protect yourself and your family with insurances is the fourth session from the 6 part series, “Complete Guide to Protect Yourself and Family from Financial Crisis“.
In this session we are discussing and giving best ideas and strategies on the critically important part, Protection.
At the end of this session, you will learn about how to identify and select right insurance products to protect self and family.
Mandatory Question to Ask Before Starting:
1. Am I the lone bread winner in my family and what will they do in my absence?
2. How does my family pay-off huge loan if I am not available?
3. How do I protect family from unexpected money requirements?
4. How do I protect my assets?
No one wants to see their family begging to survive. No one likes to see their kids crying for food. Who likes to see their family on the road after losing own home? We can’t even imagine such. So, prepare to take a fail proof safety strategy through utilizing the protection power of insurance covers.
Assessment on required insurance should start from self. It can then expand to family and assets.
How to Evaluate Current Status:
Ask following questions:
- Any family member other than you earning enough income?
- Do you have enough savings for your family and kids in case of something bad happening to your life?
- Do your family able to survive in your absence?
If an answer is ‘No’ to any of these questions, it is time to seriously act for having right insurance policies to protect everything that is important to you.
How to Use Term Insurance Plan or Pure Risk Cover to Secure Family
To protect family, insure using ‘Pure risk cover’ or ‘Term insurance plan’. This policy ensures the safety of family from financial burden in the absence of bread winner.
Term insurance generally have features with huge insurance cover for fewer premiums. Any person with huge family liabilities must consider protecting self with a Term Insurance Plan, with adequate assured sum.
Insured sum must be enough to the survival of the family. Through insuring yourself with term or risk cover plan, you are ensuring your family will receive insured amount immediately after your death by any reasons.
A person who plans for a Term Insurance cover need to identify how much insurance cover he or she required along with years of term and how to pay the premium. One can follow the best practices of having a term insurance cover equal to 6 to 10 times of his annual salary.
It is advisable to select maximum term available to the policy and opt to pay premium half yearly or yearly, depends on convenience.
How to Secure Self and Family from Repaying Home Loans?
Next, but optional for those who have home loans or other loans then think about the available methods to protect family.
Whether the borrower alive or dead, mortgage firms required the borrowed money back. If the borrowed person is not available to re-pay the loan, his or her family members are liable to pay the loan back. Or the result will be a foreclosure.
Prepare in advance to avoid such hectic situations. Your best friend to tackle such situations are “term policy against home loan”. Apply for one. Premium for such plan generally very few but offers very good features.
Through subscribing a term policy against loan, one can easily protect his or her family from repayment burden in case the death of main borrower.
How to Meet an Unexpected Medical Expenses
Hospitalization can happen at any time. It certainly put us to panic because of immediate money requirements.
Taking enough precaution can avoid frequent medical requirements, but no one can prevent it forever. We can’t predict when this will happen and what will be the severity or impact.
We should always be ready to meet by taking enough protection to shield our self from any such sudden money requirements.
The best option to deal with such situation is subscribing a ‘Medical Insurance Plan”, popularly known as Health Insurance or Health Cover policy.
Employers providing group medical insurance to their employees with certain limitations. However, this policy will get discontinued immediately when an employee leaves the company.
Having own health policy for self and family ensures sufficient insurance cover all the time.
When buying health insurances, one should consider covering entire family with adequate sum under one policy, known as ‘Family Floater Health Insurance Plan’. This policy covers the subscriber and his/her family to ensure all time protection from unexpected hospitalization expenses.
How to Protect the Assets and Valuables
We are now in the final part of the session. We have already covered important topics like protecting a family from money requirements, mortgage burden and from hospitalization expenses.
This part covers the requirements of protecting valuables and assets. Our automobiles, home, electronic appliances, other valuables all required to be protected from incidents, calamities, burglaries etc…
To know the assets to protect using a ‘General Insurance Policy’, a person required to identify the items which need protection by insurance coverage. Ensure the vehicles have insured with Third Party Insurance.
Prepare a list of items that required to be protected by insurance. Here are some must consider items listed for your information:
- Home
- Furniture
- Electronics equipment
- Collectibles like art items
- Machinery if any
- Jewelries
- Vehicles
How to Select a Best Insurance Policy
Whether it is a term insurance plan, health plan, loan protection plan, a general insurance or auto insurance, finding the right insurers are important. Contacting available insurers and comparing features of their insurance products would help to identify the best one.
Also, if required, get and assistance from professional insurance advisers available.
Before selecting any policy for any purpose, confirm that you have understood all its features, terms and conditions and ensure it is the best available policy in the market in its kind
Visit the Main Page of this Series. – “Complete Guide to Protect Yourself and Family from Financial Crisis“.