Saving extra cash, setting aside emergency funds, and making sure you have adequate insurance in place are three key ingredients for good financial planning. But should things go wrong, having adequate insurance in place can help to keep those finances secure. In this article, we talk about the different types of insurance that can help ensure your financial stability in the long term.
Financial planning with life insurance
Life insurance is one of the first things you should consider to ensure your family’s financial protection. Should you pass away, you don’t want to leave the financial worry to your family – especially if you’re the main breadwinner. A lump sum from a life insurance policy that is paid out upon your death is a good way to ensure your family’s financial protection when you’re no longer able to provide for them.
When working out how much your life insurance policy should be worth, don’t just add in your daily bills. Also include how much outstanding debt you have, as well as what your estimated funeral expenses will be.
Disability insurance
Disability insurance cover protects you financially if you become disabled and are unable to work temporarily or even permanently. With this type of policy, you’ll be paid out a lump sum or a monthly income roughly equivalent to your income when you were working, which helps keep your savings intact.
Funeral insurance
If someone you are responsible for passes away, you’ll need to have access to money for a funeral and related expenses. For a small monthly amount, a funeral policy will pay you out a lump sum if any person named on the policy dies – whether it’s you or one of your family members. This helps you avoid dipping into savings to cover funeral costs.
Retirement planning
Although not strictly an insurance product, retirement planning can be thought of as an insurance policy against struggling financially when you’ve stopped working. In many cases, people don’t set aside enough money for their retirement, and very few retire with a pension fund. The younger you are when you start a plan for retirement, the better.
There are several types of retirement products available. A retirement annuity is like having your own personal pension scheme where you get a monthly amount when you retire. An endowment policy can have both savings and life cover attached. It pays out a lump sum that you can invest to give you a monthly income in your old age.
Hollard offers a range of insurance and financial planning products including life cover, funeral insurance, car insurance and retirement planning. Read more and get a quick and easy quote online today.
