May 16, 2017 Personal insurance cannot be separated from personal finance. It is an essential component of any comprehensive financial plan. It provides you and your family the financial security in the event of a serious injury or illness, an incapacity that will affect your ability to earn, total and permanent disability, or death. This is the kind of protection that will give you peace of mind while tending to your regular duties as family provider. Types of Personal Insurance There are different types of personal insurance in Malaysia. Here, we categorize them into two: Life and Non-life. Both offer the needed protection for your person and your valuable assets. Life insurance This type of insurance is payable in case of death. Your bereaved and surviving dependents (spouse, children, and other dependents) will receive a lump-sum amount equivalent to your insurance coverage. • The payout is not limited to death but also for total and permanent disability arising from an accident, terminal or critical illness that will leave you incapacitated for the remainder of your life. The insurance proceeds will serve as the sustaining fund or safety net of your loved ones to maintain their standard of living in your absence or inability to provide for financial needs. There is also an expanded life insurance coverage referred to as value-accumulating or whole life insurance where apart from the death benefit protection, you can expect to receive an additional cash value. You can borrow this additional cash or eventually cash it shortly by surrendering the insurance policy. It is suggested that to counter the limitations of the term insurance, you can secure an insurance policy that mixes both to address any current or future eventuality. Another innovative and focused insurance coverage is the critical illness insurance or the cancer protector. It is becoming a popular protection coverage in anticipation of the consequences of a severe medical condition like cancer. Non-life Insurance As you accumulate assets during your productive years, it would be wise to secure insurance coverages for your home, real estate properties or automobiles too. Your valuable assets need to be protected from personal accidents, theft, third-party property damage, calamities or fire. Even travel insurance is now a virtual necessity. Do not misinterpret personal finance as limited to growing, saving, managing and spending your hard earned cash. If you are at the peak of your productive years, you have to decide not only on investment opportunities but more importantly on the insurance needs that will secure and sustain your loved ones in case of misfortune. You can seek the assistance of finance professionals or insurance experts to customize your financial plan to include the most suitable insurance coverage for you.