Sunday, May 16, 2010

Insurance Planning

Financial losses most of the time are caused by the inability to handle various risks. The most common solution with this problem is to purchase insurance which either transfer or shift risk from you, an individual to a group.

People buy insurance so that they are able to provide themselves with the money necessary like, to sustain existing lifestyle after the death of a loved one (life insurance), replacing monthly income (disability insurance), paying for hospital bills (Medical insurance). If you are not able to write a cheque to cover the loss, it is time to buy insurance.

Life expectancy in Singapore continues to increase. In 2008, the life expectancy was 78.4 for males and 83.2 for females.
Modern medical technology enables individuals requiring assistance and skilled care to live longer. Elderly individuals live longer, even if they are frail. Because the probability is good that you will live longer, you may need a variety of life, health, and disability insurances, such as long-term care.

Life Insurance

Life insurance pays a set amount of money to specified beneficiaries upon the insured’s death. The life insurance funds can be used to pay funeral expenses, debts, and fees incurred in settling the estate of the decreased. When purchasing life insurance, consider the standard of living you want for your beneficiaries based on your particular circumstances.

Life insurance policy requires one who is the policy owner but might not be the insured, invest cash with an insurance company who has agreed to payout money to beneficiary upon the death of the insured. Life insurance is a viable and important tool for family protection. But it is also used for financial planning as well.

Rules are very simple for life insurance. The main purpose is to have sufficient life insurance for beneficiaries to maintain the same lifestyle. Life insurance can also be used as a form of forced savings as some offers the option of accumulating cash value.

Health and Medical Insurance

Health/medical insurance plans provide compensation for medical care costs due to disease or injury. These plans range from as-per-charged to plans with a daily limit.

Long-Term Care Insurance

Due to the aging population in Singapore, as well as better survival rates for individuals who are severely disabled, long-term care insurance has become important. Long-term care policies include compensation for nursing homes, home health care, institutional care, assisted living facilities, personal care, and other related services for the elderly and disabled. The cost of premiums for long-term care insurance is affected by existing health problems, lifestyle choices, age, and family history, as well as the desired level of care. Long-term care is for everyone in need of medical assistance for a long period of time. You may need long-term care if you are in a disabling accident or have a disabling disease.

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