Life insurance takes care of your family, your health, your lifestyle and your future if you were to lose your income through death, illness or injury.
There are a few types of insurance that fall into the category of life insurance but they’re all a bit different.
Life insurance pays out a lump sum of money when the insured person dies or is diagnosed as terminally ill.
Income Protection looks after your biggest asset; your ability to earn. If you suffer from a long term illness, disability or loss of income that is not covered by ACC and are unable to work Income Protection can ensure money is still coming in.
Permanent Disablement cover pays you a lump sum if an accident or illness leaves you permanently disabled. This could be caused by either an accident or illness. You choose how to spend the money paid out to you. That could be the mortgage, looking after your children, getting access to the best medical care, or ensuring your business survives. It’s your choice.
Critical Illness Cover pays a lump sum of money if you’re diagnosed with a specific illness or condition listed on the insurance policy, giving you time to recover. This could be; a heart attack, stroke, cancer or conditions like multiple sclerosis. Some critical illness cover can pay out multiple times based on the severity of your condition.
So when do you need these types of insurance?
Consider where you’re at in life….
Are you the main income earner for your family, or do you live alone and rely on your income? If so, Income Protection means you can keep receiving income even if you can’t work.
Permanent Disablement Cover and Critical Illness Insurance are good to consider at any age. Even though most of us think we will never have to make a claim in our lifetime for an illness like cancer, or for a back injury that leaves you unable to work, it can happen. These types of insurance give you financial security if life does throw you a curveball.
You can find out more about the life insurance products available from Sovereign here.