The Steps:
  

Family

  

Government & Community

  

Education & Skills

  

Employment

  

Management

  

Credit

  
 
 
 
 
 
 


Insurance
Section I / Section II / Section III / Section IV

When purchasing disability insurance, consider:

  • The elimination period (waiting period). It is the time period between the onset of a disability and the date when the disability income policy begins to pay a monthly benefit. The longer the elimination period, the lower the policy premium.

  • Other sources of income

  • The period of short-term disability coverage you have available from your employer

Establish an emergency fund to help you in the first months of urgent need. This plus the short- term disability coverage will help extend the elimination period before needing to draw on long- term benefits and reduce the premiums.

In a disability policy, the benefit period is the maximum period of time for which benefits are paid. The benefit period can be from 1 year or extend to age 65.

Life Insurance

The need for life insurance varies over the life cycle depending upon the economic hardship inflicted upon other family members if you were to die. Are others relying on any income you are earning? Would others be responsible for debts you have or may incur? Evaluate reasons why you need to purchase life insurance, but remember:

  • Do not use life insurance as a method for long-term investment, since there are other ways to invest which are clearly more profitable

  • Do not purchase life insurance for the purpose of borrowing against at a later time

  • Consider what your need for life insurance really is as if you presently have no dependents. Remember the major reason for purchasing life insurance is to protect one's dependents financially in the event that those who earn the family income should die

  • As the amount of your investment increases, the need for insurance decreases.

While employed, an employer-paid term insurance policy may be sufficient to cover costs due to unexpected death such as medical and burial costs, non-employed spouse's needs, and any outstanding consumer and education loans. With term insurance, you pay only for the protection you need, not savings. In addition, some individuals purchase cash-value or permanent insurance in case they become unemployed, to guarantee insurability, and to cover large debts such as a house mortgage.

 

 

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