Personal Insurance Protection
Most people when we ask them to think about their most valuable asset, they'll mention their home, their car, their jewellery, or other possessions. But for most of us, our most valuable possession isn't any of those things. It's our ability to earn a living. And just as you would insure your car, your home, and other valuable possessions, you need to insure yourself in case you are no longer able to work. That's what having a Proper Risk Protection Plan does; it provides a source of replacement income if you're unable to work due to an illness or accident or even death.
The other thing to keep in mind is that an accident or illness that keeps you out of work for a period of time can be very costly. That's because people who become disabled not only need to continue providing for loved ones, but for themselves as well. For all these reasons, almost anyone who works whether they're single, married, with children or without should consider a Proper Risk Protection Plan.
Term Life Insurance
Term Life Insurance provides a lump sum in the event of death. How much you need is based on very simple formula that goes like this:
An amount needed as a lump sum that can be invested and the interest earned used to provide an ongoing income for the surviving family,
An amount that will be sufficient to pay off all debt and leave the surviving family debt free, and;
An amount to cover funeral expenses.
Trauma Insurance provides a lump sum payment in the event of suffering a serious illness or injury that doesn't result in you dying i.e. stroke, heart attack, cancer etc. How much you need is a personal choice. We normally recommend that people cover themselves for an amount that will allow them to draw a wage for at least 3 years plus an amount cover any existing debt. Not forgetting a disabling injury or illness could lead to medical bills, modifications to your car or home, or other unforeseen needs that can be quite expensive.
Personal Income Protection
Income Protection Insurance provides a replacement income up to or equal to 75% of your existing income. It is normally paid when the insured person is not able to go back to his/her usual duties if they have suffered a serious illness or accident. How much you need is determined by how much you are earning. The insurance company will normally pay up to 75% of that amount