4 Reasons why Singles and with No Dependents should still consider Insurance.
If you have downloaded my Insurance Android App – Insurance Returns, a very big thank you and I hope that the App has provided you some form of benefits in understanding the insurance rate of returns of any regular savings plan and single premium savings plan!
What Can The Insurance Returns App Do For You
But if this is the first time you are reading this… do let me share what the App can do for you especially if you have intentions to promote (as a Financial Planner) or buy a Regular Savings Plan like an Endowment Plan or those Single Premium Plans like a Fixed Deposit Plans.
In Summary, rather than appreciating the final value on maturity, e.g. you save $10,000 in total premiums for 10 years and you are expecting to receive $12,000 in projected maturity at the end of the term, which you have made an extra $2,000 from your $10,000… you get it in the form of compounding rate of return in 3.28% per annum.
This would mean that this plan is sound and worth venturing into if most of your savings are merely generating around the range of 1% per annum. But if you are one that is concerned about inflation which is an average of 5% per annum, this plan may not be that attractive because the plan is not working hard enough for you to combat against inflation!
And with the Insurance Returns App, it will save you a lot of hassle of doing the calculation! For example, all you need are to key in the annual premium, the projected maturity, the policy term and you get the compounded return! That’s it!
The Insurance Returns App At Version 1.3
Do you have a Personal Accident Plan included in your insurance portfolio? If not, do you know that you may not be adequately covered in certain aspects of your Financial Planning?
Recently I had two prospects coming to me, asking me if I could help them with their recent medical bills resulting from an accident. After looking through their portfolios, one of them have a simple Term Insurance that cover against Death, Total & Permanent Disability and the 30 Critical Illnesses. The other party has a lot of those fixed deposit plans with the banks and certain insurance companies, insurance coverage wise is just on death and total & permanent disability.
The only advice is that I can give is that they will not be able to claim from any of their current insurance plans, neither could they claim from their medishields because they were not warded and most of their treatments came from the clinical sides.
They were disappointed but they were not angry because they told me that they have never thought that they will meet with an accident and have always ditched the idea of getting a Personal Accident Plan because they feel that it’s a waste of money (no benefits until there’s a claim else money spent is down the drain)! They can only live with bearing the full medical costs on their own now!
The Importance Of Having A Personal Accident Plan
So what are the main benefits of getting a Personal Accident Plan? Let’s look at a few:
1. You Can Claim Reimbursements For Your Medical Bills For Conditions Resulted From Accidents
As long as you have suffered some form of injury because of an accident (there’s a proper definition to this so please do check against your product summary) and you have incurred a bill either from a hospital or from a clinic (yes, this is covered and it also include those TCM). You can actually claim from your Personal Accident Plan up to a certain limit depending on your plan type.
If the limits are high enough, you may be entitled to claim for future medical bills (especially follow-ups) for the current injury.
2. You Can Claim Compensation For Some Permanent Injury Suffered Due To Accidents
If, you do suffer from a permanent injury, e.g loss of an arm or an eye, you can also claim some form of compensations from your Personal Accident Plan.
3. You Can Get Some Cash Benefits Because Of Your Temporary Disablement
You may suffer from a broken arm that will result in you having to have a long medical leave and thus you are unable to go back to work. Your income may suffer as a result. Having a Personal Accident Plan may help to lessen the financial impact because most plans out there offer Cash Benefits (will never be high enough to cover your full month’s pay) to help you tide over the situations.
Why A Personal Accident Plan Is A Must-Have In Your Insurance Portfolio
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