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Covering your loved ones and your valuable assets with adequate insurance protection is a fundamental step in effective financial planning. But in doing so, you are faced with a stream of questions, all too perplexed. |
Life insurance is all about ensuring that your loved ones continue to live a comfortable life after you have left this world. There are basically four types of life insurance – whole life, term, endowment and investment-linked.
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Whole life insurance provides lifetime protection, and lets you build cash value over time. You can use your cash value to take out a loan for emergencies, fund a major purchase, or send children to college.
Benefits of permanent life insurance:
 | Premiums remain constant over your lifetime. |
| Benefits include lump sum payment on death, temporary and permanent disability payouts. |
| You can accumulate cash value. |
| You can withdraw or borrow accumulated cash value. |
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Term life insurance covers you for a period of time you select (for example, 10 or 20 years) and pays benefits only if you die during the time you're covered. Term policies do not accumulate cash value, which means if you do not die within the time you're covered, your estate does not collect any money from the policy when it ends. However, most companies offer conversion privileges to permanent policies, which means you can turn your term life policy into a "permanent" one under some circumstances. With permanent policies, a portion of your premium goes to building cash value with interest.
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With endowment insurance you get both protection and savings. The policy pays the sum insured and any bonuses you have built upon policy maturity, when you die or if you become totally and permanently disabled during this period.
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| Investment-linked Insurance |
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Investment-linked insurance offers you the potential of higher returns as part of your premiums are invested in stocks, funds and bonds. You can choose the risk-levels according to your risk appetite.
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We have to be prepared for the worst, but live life like there is no tomorrow! Having adequate health insurance coverage gives us peace of mind. This prepares us for the days we need professional healthcare. From hospitalization to critical illness; from child related illness to long term care, the possibilities are aplenty with health insurance. Choose what you need.
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Travel has its fair share of risks. From missing your connections to losing your baggage to falling sick – anything can happen to you when you are away. With travel insurance, you are secured from the financial stress of dealing with these travel-related risks. The next time, don’t leave home without your travel plan!
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Buying education plans for your children is the smart thing to do these days. This is an investment strategy that pays you a lump sum upon maturity, often coinciding with the time your child or children enter tertiary education. A sound strategy considering that a foreign tertiary education can set you back by $200,000!
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It is said that a car is normally an extension of the person. To lose something so sensational will be quite a trauma. Protection against theft and accidents is a requirement under law.
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