Age : the younger you are, the cheaper the premium.

Smoking : Pay higher premium if you are smoker.

Health history : The healthier you are, the cheaper the premium

Family Health history. : It does affect your premium in certain scenario

Job : If you have a higher risk job, such as truck driver, be prepared to pay more premium than those working as accountant who stay in the office most of the time.

* Make sure you provide accurate information before submitting your application, failing to do so, it may affect your claim in the future.

This is a very important factor in purchasing an insurance policy.

The reason of having an insurance protection is to ensure that you or your dependents’ future lifestyle will not be affected should something unwanted happened.  The most basic calculation is to work out the yearly expenses needed and multiply by the numbers years that your dependent needed it.

For example your dependents needs 30,000 a year and they have another 10 years before they can make their own living, then you need a minimum coverage of 300,000. Please do take note of the inflation rate as well.

Another decision factor is your current income, you should not spend more than 10% of your current income on insurance policy. Please take note that if you are not able to pay your insurance premium, your policy will be terminated ( it is different scenario if you insurance tie to an investment link product ).

It is always good get advice from the professional, call your financial advisor today to find out more about insurance coverage that you need.

Having decided that you need an insurance protection, the next step is to decide  what kind of insurance policy that you need ?

The major types of personal insurance including :

-          Life insurance – to compensate you against Natural Death

-          Income Supplement Insurance – to compensate your monthly income

-          Personal Accident – to compensate you in the event of accident occurred.

-          Critical illness – to compensate you if you diagnose with critical illness

-          Medical Insurance – to compensate you if you seek medical treatment

Who needs Life Insurance ?

Life insurance is designed to protect your family and anybody depend on you financially.  If you loss your life, these person will not have the income to sustain their life.  So if nobody depends on you financially, then you don’t need life insurance coverage.

For example children do not need life insurance coverage as no one is dependent on children financially.

If you are young and planning to start a family in the future, it is always good to plan early and purchase a life insurance, the reason is the younger you buy your life insurance the cheaper the premium.

Who needs Income Supplement Insurance ?

Working adult needs income supplement insurance.  Imagine if you are not able to work, do you have any income to sustain your life ?  Even if you are single and no dependent, do you have any others form of income ? If you don’t, then you need an Income Supplement Insurance.

Another reason is you do not need to burden your family who might oblige to help you financially.

Who needs Personal Accident?

Personal accident insurance is for everyone in any age group, unless you wealthy.

Children – you need personal accident coverage if the children meet an accident and lost both his leg, you may need to hire a maid to take care of his daily life in the future. The personal accident coverage will provides you with the financial assistance.

Working adult – you need personal accident coverage if you meet an accident and lost your hands, you may need financial assistance seeking others living skill for your future needs. Another reason is you do not need to burden your family who might oblige to help you financially.

Elderly – you need personal accident coverage because if you meet an accident and lost both you leg, you may need to hire a maid to take care of your daily life in the future. The personal accident coverage will provides you with the financial assistance. Another reason is you do not need to burden your family who might oblige to help you financially.

Who needs Critical illness Insurance ?

Critical illness Insurance is for everyone in any age group, unless you wealthy.

Treatment of critical illness such as heart attack, cancer, stroke and artery by-pass is expensive. Critical illness insurance will come in handy to settle the medical treatment bill and any others follow-up medical treatment may required in the future. Another reason is you do not need to burden your family who might oblige to help you financially.

Who needs Medical Insurance ?

Similar to personal accident insurance, medical insurance is for everyone in any age group, unless you wealthy.

Medical cost is expensive and warded to hospital may incur thousand of dollar. A medical insurance will come in handy to settle the medical bill.

It is always good get advice from the professional, call your financial advisor today to find out more about insurance coverage that you need.