Growth & Jobs | Consider life insurance products to assist with financial wellness

Persons planning for financial wellness should consider various life insurance products currently on the market that will assist in their own care, or even provide coverage for their final expenses in the event of an early death, says Othneil Blagrove, senior manager of sales at JN Life Insurance.

Insurance products are important to an economy, because they promote financial stability and can also provide help for families in the event of unforeseen circumstances. They also promote trade and commerce which lead to economic growth. Blagrove said there were insurance products on the market that will provide coverage in the event of illness or death, and these should be considered.

“One of the sure ways to cover yourself is to have life insurance. Even if you are close to retirement, there are now policies on the market which can provide coverage, and even an investment. These products act as a buffer in the event of illness or unforeseen circumstances,” he said.

Blagrove said one of the products to consider is a term life insurance policy, which can provide coverage until the policyholder turns 75. He explained that this product can be purchased by a senior who is as old as 65.

“Term insurance is designed by life insurance companies to provide pure insurance protection for the temporary need of the client, or where larger coverage amounts are needed and affordability is an issue. Term insurance also has cheaper monthly payments and is the lowest cost for life insurance. You can tailor the duration of your policy for 10- or 15-year periods to cover your needs. However, with the exception of the JN Life Vest, term life insurance policies do not have an investment option,” he added.

Blagrove said that another insurance product that can be considered is a critical illness product.

“Critical illness products provide coverage in the event of a major illness, such as a heart attack, stroke, cancer or kidney ailments. Depending on their age, these products can be purchased to cover themselves and other family members, or just themselves,” he explained.

“Critical illness insurance coverage is for anyone who has never been diagnosed with a critical illness; and someone who is 60 would be eligible,” he added.

Blagrove explained that a critical illness plan is important, because treating critical illnesses could be very costly. Therefore, seniors need to be prepared to cover these expenses.

“A critical illness insurance policy will ensure that if you are diagnosed with a covered illness, the amount is available to assist with the treatment. This coverage is offered to persons up to age 60. Therefore, there is an urgent need to get one of these policies before you pass this age,” he stated.

“These policies normally last for 20 years and have a refund benefit if there is no claim upon expiry,” he revealed.

He added that there are also burial plans to provide protection.

“If you cannot afford a life insurance policy, you may purchase what is called a burial plan, which is a whole life plan designed to fund final expenses. It also provides coverage up to the age of 76,” he explained.

He adds that persons should always seek advice from a financial adviser to find which policy is best for them.

“You should have a conversation with a financial and insurance adviser, who is trained to recommend the best insurance plan for you. This would be central to your retirement plan, to ensure that you remain covered for all eventualities,” he stated. “What you don’t want is to retire and be concerned about finding funds in the event of illness, when you should be enjoying the funds that you had put away to enjoy at the stage in your life.”