Any engineer knows that disasters or natural accidents can lay waste to the best-laid plans. Life is no different.
Engineers have a range of strategies at their disposal when disaster occurs, both in a built environment and a personal sense. So if life is a bridge, then life insurance is funding to rebuild if the first bridge is damaged or washed away.
However, not all engineering funding structures are the same – and the insurance policies that will help you rebuild your life are no different.
Here are four life insurance products worth considering in case you and your family require funds to help cross troubled waters.
Total and Permanent Disability Insurance (TPD): replacing the bridge
You can think of TPD as money to help you build a brand new bridge in exactly the same spot following a disastrous accident. That's because it's paid out if you become permanently disabled, paying a lump sum if you can no longer work. It can also be used to help pay medical bills.
The payment is provided in a lump sum so that you can continue to support both yourself and your family.
There's a number of policy variations available:
For example, you can obtain a policy written to cover you if you can no longer work in your specific field. The premiums for this kind of insurance will cost you more than the policies that cover you if you're unable to work in any work suited to your education, training or experience..
Income Protection: budgeting for bridge repairs
Consider income protection as ongoing funds to repair and maintain a bridge if it suffers damage.
For most people their job is vital to their livelihood. The same goes for a city or town that relies on a bridge. And neither can afford to be out of order for any period of time if an accident, injury or illness occurs.
Income Protection can replace up to 75% of your wage if you are unable to work. It’s similar to how a bridge will have to close one lane of traffic at a time while undergoing repairs.
Income Protection ensures your mortgage will continue to be paid, helps you stay on top of bills and allows you peace of mind while you are recuperating. Depending on your situation, you can be covered for a short or long period of time.
Trauma Insurance: lump sum funding for disastrous damage
When a bridge is badly damaged but not enough to warrant knocking it down altogether, it's going to require a massive capital injection to repair it.
Trauma insurance is similar. It pays out a lump sum if you're diagnosed with illnesses such as cancer or a heart attack.
The lump sum is designed to help you take care of your financial responsibilities while you recover: both for your standing expenses, and new expenses such as rehabilitation or medical bills. Basically, it's designed to help you make a complete recovery as soon as possible with no lasting financial problems.
It's worth noting that the illnesses covered by trauma policies can be very specific, so be sure to do your homework.
Life cover: replacing a bridge with a tunnel
Say a bridge finally runs its course, with its successor to be a tunnel. Large upfront funds are required for that kind of transition.
The same goes for when you pass away; your partner and children may need funds to not only continue to flourish in life, but also to carve out their own destiny.
Life cover pays a lump sum to nominated beneficiaries such as your partner, children or other family members in the event of your death or the advent of a terminal illness.
Policies can range from simply covering the cost of a funeral, all the way to helping ensure that your partner and family will never have to worry about navigating financial burdens in your absence.
To learn more about the different types of life insurance, click here.
NobleOak specialises in life insurance, offering discounted premiums for professionals. Learn more here.
