insurance companies

Peace of Mind - the Biggest Pay-Off of Protection Insurance

How many times have you politely declined to entertain the idea of protection insurance when that insurance agent came knocking at your door? Well, if you have, you wouldn’t be alone. Many people around the world react in similar fashion, without giving such a well-intentioned visitor a chance to explain how critically important protection insurance really is, not just to an individual ... but to every member of the individual’s family, too.  

Protection insurance is not an option

Protection insurance is serious business. It isn’t an option ... it is imperative, something that all mature, caring adults, homeowners in particular, would be well advised to buy. Well, to some people, this may be easier said than done, if one considers the large number of insurance providers; the multiple types of protection insurance policies they offer; and the befuddling insurance verbiage that come with them. However, these factors do not discount the indispensability and importance of protection insurance in any way.

Think of the people and things at risk

If you pause to think how priceless you and your family’s lives are to each other, or how precious your health, home, income, car and other valuable possessions are to you, perhaps, you’ll be responsible enough to consider one or more types of protection insurance for you and the family. There are several types of protection insurance policies you can buy, a few of which are briefly outlined below, but first, you must know that there’s a clear demarcation line between life insurance and general protection insurance.

General insurance vs. life insurance

Life insurance is, as the term suggests, insurance protection for your life and that of every member of your family. On the other hand, general protection insurance denotes personal insurance that can be purchased to provide coverage (protection) for important things other than life. Some salient examples of general protection insurance include - accident; disability; health; risk against property damage due to floods, fire and other natural calamities; employment risk; third party motor vehicle insurance, etc.

Home protection insurance

This is a type of insurance which will effectively cover damage to your home in the event of natural disasters like fire, flood or earthquake, as well as valuable household effects, personal items such as jewelry, etc. It is an insurance that will save you a significant sum of money and give you peace of mind, considering the unpredictable nature of such events.

Income protection insurance

This is a type of insurance that is designed for salaried people, who worry about the consequences of becoming unproductive or redundant in their jobs as a result of illness or disability, particularly if they’re sole breadwinners. Income protection insurance alleviates such tension, by paying, on an average 60%¹
(or more) of the insured individual’s fixed monthly income, if such individuals are not in a position to work. Such amounts are usually tax-free and paid until the age of 50 to a maximum of 65 years¹, depending on the insured workers’ policy.

Mortgage protection insurance

This is a type of insurance designed to meet monthly mortgage repayments in the event you aren’t in a position to do so. It is applied to individuals who are made redundant only due to illness or injury; unemployment; or a combination of all three, with policy payouts awarded immediately to those who have been unemployed for a period of approximately 30 days² consecutively. Mortgage protection insurance in the UK provides tax-free monthly income to meet mortgage repayment up to 12 months², and in some cases up to 24 months², depending on the insured individual’s policy and provider. You must know however, that premiums charged for such mortgage protection varies from one provider to another.

The above are but a few of the protection insurance plans you can buy. Others include accident insurance; health insurance; car insurance; dental insurance; and many, many more.

So, if you consider the precious things you could lose without any type of protection insurance, perhaps, you’ll lend a serious ear the next time a knowledgeable and friendly protection insurance agent comes knocking at your door ... and that could be the start of guaranteed peace of mind for you.