family financial planning

Protecting Your Family Financially When Injury or Illness Strikes

While no one likes to think about bad things happening, it’s never a good idea to discount them entirely. An unfortunate fact of life is that unlucky things do happen and accident or illness can strike you at any time. This can have a devastating impact on your family finances, but there are steps you can take to ensure your family is as protected as possible from any potential fallout. There is a great deal of freely available information online about protecting your family financially when injury or illness occur, such as the hints and tips you can find via sites such as www.superclaim.com.au. Below are a few different ways to safeguard your finances should the worst happen.

Mother looking after her sick child at home

Trauma Insurance

Trauma insurance policies usually pay out in a lump sum. It comes into effect (depending on the terms and conditions of the specific policy) when you experience physically traumatic ailments such as a stroke or cancer, or even a heart attack. Any of these conditions can impact your ability to earn an income and provide for your family, so the payout is to tide you over and cover your medical and other out of pocket expenses while you recover.

Income Protection Insurance

Income protection insurance usually comes into play when an event occurs in your family that impacts your ability to earn your usual level of income. This may include a car accident, or some kind of illness, that means you will be off work for some time. The idea of this sort of financial safeguard is that it usually pays out in instalments, and it is to keep your household running while you recover or figure out your next step as a family.

Life Insurance

This is a type of protection most people are already familiar with. Life insurance can cover you in the event of your death – but did you know that some policies will also pay out in the event of your being diagnosed with a terminal illness? This is an important distinction to look into when you are deciding whether or not your need life insurance, and which policy may suit you and your family best.

Total and/or Permanent Disability Insurance

Total and/or permanent disability insurance is often an included component of other types of insurance policies. It covers your family for unexpected and out of pocket expenses, and gives you a lump sum to tide your family finances over for a while. It is paid out in a lump sum, in the event of the you not being able to work again, either at all or in the same capacity and at the same income level at which you were previously employed.

While no one wants to move through life with the outlook of a pessimist, it’s a fact that unfortunate events do occur. You can’t possibly cover yourself and your family against every conceivable eventuality, but there are some definitive actions you can take to insure your family financially against the likelihood of injury or illness causing economic distress in your household.

Do you have any contingency plans in place for protecting your family finances from fallout, should injury or illness strike your household? Share your insights with others via the comments box below.

Image Courtesy of Kaspars Grinvalds – Fotolia.com

9 Comments

  1. Unfortunately, we didn’t think of injuries that would happen accidentally when my father was bumped by a car from behind. The insurance company of the car paid for the damages (initial hospital bill). However, there are still losses like the capacity to earn money that could not be answered.

  2. Insurance is very important nowadays not just for adults but also for the whole family. Though its expensive but when something happens the insurance can always be trusted. This 2015, my goal is to have a health insurance of my own.

  3. This is the very first time I heard about Trauma and Income insurance. I wonder if its available here in the Philippines.

Leave a Reply

Your email address will not be published.Required fields are marked *