Confused about insurance? Here are the basic types
By Sher Bautista
Insurance can be intimidating and navigating the different kinds, payment schemes, and technical features can be confusing. To help you, we’ve put together a guide on the basic types of insurance and their uses. Each type answers a need and hopefully this helps you decide which one you want to prioritize.
- Life insurance
This isn’t as morbid as some people think. Sure, it’s primarily meant to protect your loved ones after you’re gone, but would you not want to prepare for that? Depending on the insurance company, plans will offer different clauses and terms. Life insurance, at its core, guarantees your beneficiary—most often a member of your family—cash benefit should anything happen to you like critical illness or death, depending on the insurance plan. FWD Life Insurance’s Set for Tomorrow – Term Life Insurance and KanLive Life Insurance Plan are some examples.
- Investment-linked insurance
Some insurance plans have added investment components that you can later use for retirement purposes. FWD Set for Life and FWD All Set Higher, for instance, will cover you for 100 years and, at the same time, allow you to invest in different funds to grow your money in. If you want to retire early with a comfortable nest egg, ask your financial advisor about the investment options that can be used as a retirement plan.
- Health insurance
This type of insurance is meant to take care of your medical bills in case of sickness or hospitalization. It can cover all forms of expenses incurred, depending on the plan you choose.
From general HMOs to more comprehensive plans, health insurance is a must in today’s world where medical bills can pile up really fast for diseases like cancer. Individuals without coverage can easily be overwhelmed and personal savings can be quickly depleted to cover the cost of unexpected illness, that’s why health insurance is important.
FWD Set for Health will cover you against 42 major critical illnesses and will give your money back when you reach 75 and never made a major critical illness claim. With FWD Set for Health, you also get 20% coverage for 15 minor critical illnesses.
- Accidental death insurance
If you are a modern-day nomad and love living your life on the road, you should always have some form of protection.
FWD KanGuard Accidental Death Insurance provides Php 500,000 in case of accidental death or if you become permanently disabled due to a terror attack. It only costs Php1,799 and can be bought online via FWD’s online shop.
- Auto Insurance
If you have a car, get comprehensive insurance. While it is required by law to have, at least, the basic TPL car insurance, it would be wise to have comprehensive coverage. Comprehensive insurance payments may be an annual inconvenience but generally well worth every penny considering the hefty expenses associated with automobile accidents. Even minor damages can cost a pretty penny.
- Home Insurance
Property owners know the value of having homeowner’s insurance. Having your residence covered gives you security against unforeseen events such as fire, theft, vandalism, or flooding.
Before you sit down with a financial advisor, know your reasons for getting insurance. This will dictate what kind of plan is best for you and your loved ones. Consult an expert now! Click here.
