Life Insurance and Personal Financial Risk Jacqueline Hodges
Many people ignore their personal financial risk and the insurance they need to protect their lifestyle. Many say “I’m too busy to worry about this”, “I’m fit and healthy”, “I’m only young” or “I don’t need life insurance, I don’t have anyone to leave it to”. But the trust is, we all need to think about our life insurances. It’s a process of personal financial risk management, like carrying an umbrella is its cloudy outside. What I find is many of my clients, don’t actually understand life insurance is actually an umbrella term. Life Insurance is a general term for a range of personal insurances, including: • Life insurance, • Total and Permanent Disability Insurance, • Recovery Insurance, and • Income Protection Insurance
Getting the right life insurance is an important decision. But choosing the right life insurance is difficult as each insurer offers different features and your circumstances change through the life stages. Some of the important factors to consider when choosing your life insurance include: • The type of life insurance and the level of cover • Your health and lifestyle and whether any special conditions apply • The sum insured or amount of benefit your insurer will have to pay out • The price of your premiums, can you afford the monthly or annual premiums • Your occupation, a dangerous occupation may increase the premium • Your age, older people face much higher premiums, the younger you are when you commence generally reduces the premium
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