Navigating Insurance: Types, Coverage, and Assessing Your Needs

Life is unpredictable, and unfortunately, unexpected events like illnesses, injuries, or mental health challenges can disrupt our lives. In such times, having insurance coverage can provide a crucial safety net, offering financial support when it's needed most.

 Assessing your insurance needs is vital for ensuring you have the right coverage.

 

  • Start by evaluating your financial situation, including debts, income, and dependents.

  • Now consider how much debt you have and how insurance could help cover it rather than selling your assets.

  • Think about your income and whether your family could maintain their lifestyle without it. Also, consider the needs of your dependents, such as children or elderly parents.

  • Lastly, think about any legacy you want to leave behind.

 

By assessing these factors, you can determine the appropriate level of coverage to protect your financial security and provide for your family's future.

 Now understanding how different insurance products cater to various health conditions can empower you to make informed decisions not only about what monetary level or cover you need but also about what specific type of coverage is right for you.

 Let's delve into the recent insurance claims statistics provided by TAL Life to gain insights into how different insurance products support policyholders facing diverse health challenges. You can read further here.

The most common reasons for accepted claims are as follows;

 Cancer:

 Cancer, including breast and pancreatic cancers, accounted for 17% of all the claims accepted by TAL Life. When it comes to cancer, the emotional and financial burden can be overwhelming. However, with the right insurance coverage, policyholders can focus on their recovery without worrying about the financial implications.  

  • Income Protection: 42% of cancer-related claims payments fall under income protection, providing policyholders with a steady stream of income during their treatment and recovery period.

  • Life Insurance: 47% of cancer-related claims payments come from life insurance policies, ensuring financial security for policyholders and their loved ones in the event of the worst-case scenario.

 

Injuries & Fractures:

 Injuries and fractures, including joint dislocation and bone fractures, constituted 16% of all the claims accepted. Whether it's a sports injury or an accidental fall, these incidents can lead to physical discomfort and financial strain. Here's how different insurance products support policyholders in such situations: 

  • Income Protection: 72% of payments for injuries and fractures claims are provided through income protection, ensuring financial stability during the recovery period, especially if the policyholder is unable to work.

 

Musculoskeletal & Connective Tissue Conditions:

 Musculoskeletal and connective tissue conditions, such as back pain and arthritis, accounted for 13% of all the accepted claims. These conditions can significantly impact an individual's mobility and quality of life. Let's explore how insurance products cater to these challenges: 

  • Total & Permanent Disability (TPD) Insurance: 30% of payments for these claims are covered under total and permanent disability insurance.

  • Income Protection: 69% of payments for musculoskeletal and connective tissue conditions claims are provided through income protection, ensuring financial support during the treatment and recovery phase.

 

Conditions of the Circulatory System:  

Conditions of the circulatory system, including heart attacks and strokes, constituted 10% of all accepted claims. These conditions require immediate medical attention and ongoing care. Let's explore how insurance products offer support: 

  • Life Insurance: 56% of payments for these claims come from life insurance policies.

  • Income Protection: 32% of payments for circulatory system conditions claims are provided through income protection, ensuring financial stability during the recovery phase.

 

Mental Health Conditions:  

Mental health conditions, including post-traumatic stress disorder and depression, accounted for 19% of all accepted claims. Mental health challenges are often overlooked, but insurance products offer crucial support: 

  • TPD Insurance: 28% of payments for these claims are covered under total and permanent disability insurance.

  • Income Protection: 68% of payments for mental health-related claims are provided through income protection, offering financial support during treatment and recovery.

 

Understanding how different insurance products cater to various health conditions is essential for making informed decisions about your coverage. Whether you're facing a medical diagnosis, injury, or mental health challenge, having the right insurance coverage can provide peace of mind and financial security during difficult times. Take the time to review your insurance policies and ensure they align with your current needs and circumstances.

If you need any assistance in reviewing your own policies, please do not hesitate to contact our Financial Planning team who specialise in insurance.

Jenni Anderson