What kind of bell does it ring when it comes to insurance? Panhandler, monthly/annual investment which yields no return, illness, injury, or death? As unfortunate as it can be, insurance was seldom a positive connotation and such believe was quite universal.

 Regardless of whether you are blaming it on our amygdala or evolutionary psychology, one thing remained clear here, we are afraid of things that we do not understand. This is perhaps to why we dislike insurance so much because we do lack of knowledge about this product.

 An obvious example will be life insurance. Not many people can illustrate the kind of coverage that such type of insurance encompasses and often, most people mistook it as a synonym for total & permanent disability (TPD), a related but absolutely different type of insurance. So how the two differ exactly? Maybe we should go back to their definition in order to highlight the contrast.

 Life insurance is the amount that the insured will be paid for his/her death or diagnosis of a terminal disease which results in less than 12-months life expectancy. This sum of money could be used as financial support for other family members or paying off debts and coverage of funeral services. Premiums of life insurance generally increase as one gets older.

 On the other hand, TPD will be paid only when a person is met with incidences that left he/she completely and perpetually disabled and is unlikely to go back to work in the advice of a certified physician. Do take note that TPD also comes with an additional clause and that is the inability to perform the current occupation or the inability to perform any form of occupation. Nevertheless, the claim is usually render to offload the insured’s medical bills or long-term financial burden.

 Next, life insurance will only be paid if the insured die within the policy term. For example, if the insured had signed up for a 10-year term policy, the amount will automatically be paid when he/she passed on within this period of time. This is to why there is a maximum age to certain life insurance policies. A typical life insurance policy will hover between the maximum age of 65 to 85 however if one is to purchase a life insurance after a certain age, there is a tendency for the company to recommend them the whole life or universal life policy.

 Payment conditions are stricter for TPD to the sense that one will only be paid if he/she is physically disabled for the rest of his/her life because of the kind of work-related or outside work accident that is/are listed in the policy which one had agreed upon. Therefore, it is advisable to perform a risk assessment to one’s occupation and hobbies before deciding on a particular type of TPD, as the higher the risk, the more expensive the policy one will need to pay.

 Last but not least, life insurance does not pay for death resulted from a suicide while TPD will not pay for damages that result in temporary disability or condition in which one can eventually recover and go back to work normally. Such momentary loss of income as a result of an accident is usually covered by either an income protection or trauma insurance policy.

 Occasionally, TPD is purchase as an optional addition to a life insurance even though stand alone is also available. During the application, insurance company will also check on one’s income and existing insurance coverage before helping in deciding an appropriate plan. It is often recommended for one to be more insured during the peak period of their lives when burdens of families, children, and mortgage kick in but minimised insurance when one approaches old age.

 Whichever the age or stage of life one is in, he/she should never go without a proper insurance plan in life. While getting one in place is important, finding one which suits their lives is equally essential too.

What kind of bell does it ring when it comes to insurance? Panhandler, monthly/annual investment which yields no return, illness, injury, or death? As unfortunate as it can be, insurance was seldom a positive connotation and such believe was quite universal.

Regardless of whether you are blaming it on our amygdala or evolutionary psychology, one thing remained clear here, we are afraid of things that we do not understand. This is perhaps to why we dislike insurance so much because we do lack of knowledge about this product.

An obvious example will be life insurance. Not many people can illustrate the kind of coverage that such type of insurance encompasses and often, most people mistook it as a synonym for total & permanent disability (TPD), a related but absolutely different type of insurance. So how the two differ exactly? Maybe we should go back to their definition in order to highlight the contrast.

Life insurance is the amount that the insured will be paid for his/her death or diagnosis of a terminal disease which results in less than 12-months life expectancy. This sum of money could be used as financial support for other family members or paying off debts and coverage of funeral services. Premiums of life insurance generally increase as one gets older.

On the other hand, TPD will be paid only when a person is met with incidences that left he/she completely and perpetually disabled and is unlikely to go back to work in the advice of a certified physician. Do take note that TPD also comes with an additional clause and that is the inability to perform the current occupation or the inability to perform any form of occupation. Nevertheless, the claim is usually render to offload the insured’s medical bills or long-term financial burden.

Next, life insurance will only be paid if the insured die within the policy term. For example, if the insured had signed up for a 10-year term policy, the amount will automatically be paid when he/she passed on within this period of time. This is to why there is a maximum age to certain life insurance policies. A typical life insurance policy will hover between the maximum age of 65 to 85 however if one is to purchase a life insurance after a certain age, there is a tendency for the company to recommend them the whole life or universal life policy.

Payment conditions are stricter for TPD to the sense that one will only be paid if he/she is physically disabled for the rest of his/her life because of the kind of work-related or outside work accident that is/are listed in the policy which one had agreed upon. Therefore, it is advisable to perform a risk assessment to one’s occupation and hobbies before deciding on a particular type of TPD, as the higher the risk, the more expensive the policy one will need to pay.

Last but not least, life insurance does not pay for death resulted from a suicide while TPD will not pay for damages that result in temporary disability or condition in which one can eventually recover and go back to work normally. Such momentary loss of income as a result of an accident is usually covered by either an income protection or trauma insurance policy.

Occasionally, TPD is purchase as an optional addition to a life insurance even though stand alone is also available. During the application, insurance company will also check on one’s income and existing insurance coverage before helping in deciding an appropriate plan. It is often recommended for one to be more insured during the peak period of their lives when burdens of families, children, and mortgage kick in but minimised insurance when one approaches old age.

Whichever the age or stage of life one is in, he/she should never go without a proper insurance plan in life. While getting one in place is important, finding one which suits their lives is equally essential too.