Insurance should be a big concern for all families today. However, with so many policies to choose from, it can feel impossible to know where to start. That is what this guide is for. Read on to discover more about different insurance policies you may need.
Medical Insurance
The first thing you need to do is determine the type of medical insurance policy you require. You can do this by asking yourself a few key questions. Firstly, you need to ask yourself what you require from your policy cover. Make a list of all of your priorities; these are essentials. For example, if you are someone that likes outdoor activities, you may want coverage for hazardous sports. How often do you visit the doctor? Are you healthy? What is your medical history? These are also key questions to ask yourself. What is your budget? Can you afford to pay on a yearly basis? If you can, you will be able to lower the overall cost of your insurance. Once you have asked yourself these questions, you should have a good understanding regarding the level of cover you need, i.e. Standard, Intermediate, and Comprehensive. These are the general cover levels, but you will find that most insurers allow a level of customisation so that the policy can be tailored to suit your needs specifically. You should never compromise on your needs with medical insurance, as you will essentially render your policy ineffective.
Building Insurance
Building insurance is a type of policy that covers your actual property, as opposed to contents insurance, which covers the things you own. Buildings insurance covers permanent fixtures, including bathroom suits, fitted kitchens, windows and doors, floors, ceilings, walls, and roofs.
Some insurance companies will also cover gazebos, sheds, and garages, but it is always best to check this beforehand, instead of simply assuming that you are going to be covered. Mains-supply pipes, boundary walls, gates, and fences aren’t usually covered, but the general insurance firm you choose may be willing to add these to your policy as an extra.
A standard buildings insurance plan should cover the entire cost of rebuild or repair in the event of a vehicle colliding with your building, bursting or freezing of the plumbing, vandalism, an earthquake, an explosion, for example, if you have had a gas leak, as well as falling trees, storm damage, lightning strikes and fire. Buildings insurance is not deemed a necessity for everyone that owns a property. Nevertheless, if you do have a mortgage, whether on an existing property or a new build like this HDB BTO launch, most lenders will insist that you take out this type of cover so that you protect their investment. In this regard, the cover will probably need to run from the date the contracts are exchanged right up until the end of your mortgage. When applying for this type of insurance policy, full disclosure is a must, as you do not want to do anything that risks invalidating your policy.
Critical Illness Cover
Critical illness insurance is a policy that you may have heard about, yet you may not be completely sure regarding what it covers and whether it is something you should be interested in. Getting seriously ill is something that no one likes to think about. However, the harsh reality is that it can happen to any of us. You need to consider how you and any dependents would cope financially if something traumatic was to happen. If you were unable to work, for example, would you still be able to cover all of your bills, living cost, and your mortgage? Most of us would answer ‘no’ to that question. This is where critical illness insurance comes in. This is a type of insurance that will pay out a lump-sum of tax-free cash if you are diagnosed with one of the medical conditions or illnesses that are outline on the policy. This gives you the peace of mind that you are covered no matter what happens in the future. Critical illness insurance is something that a lot of insurance companies offer as an add-on to life insurance, or you can buy it as a standalone policy. It is designed for all people, no matter how old you are, your medical history, where you live, and such like. After all, no one is immune to the risk of illness.
Travel Insurance
Travel insurance companies offer a wide assortment of policies, ensuring they cater to the needs of all of their policyholders. If you are unsure regarding what type of cover you need, read on to discover more about the main types of policy that most travel insurers will provide and whom they are suitable for.
Firstly, we have single-trip travel insurance. This type of policy is designed to cover you for the duration of one holiday or business trip. The policy will state when you are policy begins and ends. Most of these policies are taken out for one or two week vacations. You can also take out an multi-trip or annual travel insurance plan. As you may have gathered by the name, this type of insurance provides cover for a 12-month period. This is definitely an option worth considering if you are planning on going away more than once throughout the duration of the coming year. One thing you do need to make not of is the maximum length of stay per trip. The vast majority of annual policies will have a maximum stay length, and this tends to be between 30 and 45 days. However, different insurance companies have different terms and conditions, which is why you should check this out in advance. Another type of travel insurance option is long-stay travel insurance, which are designed to cover extended trips. These policies are for vacations that are longer than 30 days.
Life Insurance
Life insurance may be something you are considering at the moment. However, as there are so many different insurance plans available today, you may be wondering whether this is something you need, or if it is simply an unnecessary expense. Life insurance companies pay out upon the death of the policyholder, ensuring the beneficiaries benefit from a lump sum of tax-free cash. Is this the type of insurance policy you need? Well, there are a number of factors to look at to help you make up your mind. A life insurance policy is generally considered a must for anyone that has dependants, such as a family living in a house with a mortgage that you contribute to, a partner that relies on your home, and school age children. You can continue to provide for them once you pass away with a life insurance plan. Another reason why you might want to take out a life insurance plan is if you want to cover funeral expenses so that your family so not have to fund this. So, who does not need life insurance? Well, if you do not have anyone that relies on you, life insurance is rather unnecessary. You may also believe that you do not need life insurance if your partner earns enough family to live on, or if you are single. Nevertheless, don’t forget that some life insurance plans also include funeral expenses.
