Insurance You Shouldn’t Do Without For Your Wedding
By James Yang, dedicated financial advisor to Bliss Concepts
When it comes to wedding planning, some people are looking into various ways to save money, and often times, many will look at cutting their insurance arrangements as the first choice.
Many do not see insurance as a direct benefit to them. As a matter-of-fact plainly, insurance is just a piece of paper. Compared to that designer wedding gown to look pretty or that posh banquet so as not to lose face, insurance is the easiest to give up.
Another common reason some couples give: we can always take it up after wedding. However, forgoing adequate insurance could place you just one unexpected event away from a wedding disaster. And that’s the last thing you would want to worry when you should be happily planning ahead for your wedding! How can you marry when back in your mind, your partner is going to a financial burden to you all the rest of your life?
Here are the basic insurance policies that no couple should be without (even if you really have very limited budget!):
Medical
This is the number 1 priority. Medical cost is a huge uncertainty but can be transferred easily to insurer. This will prevent you from draining your savings and assets away in the event of a hospitalization.
When considering Medical Insurance, consider the following:
- Do they restrict specialized services you might need like pregnancy-related coverage? What are the fine-prints when it comes to claims?
- When insurers claim that they offer a full cover, always ask what is covered. There is no such thing as full cover for everything. Many insurers do not actually cover treatments such as experimental drugs or clinical trials which are generally very expensive.
- If you choose catastrophic coverage to lower your premiums, can you afford the high deductible and co-payment in case of an accident or major illness? What are some of the affordable alternatives that can help you off-set these potentially major bills?
- How’s the claim experience like? How long does it take to claim? What are the procedures involved? Should you have a need to claim for medical insurance, the last thing you want is to constantly chase and ask for the claims to come in!
Critical Illness and Personal Accident
These plans offer a payout in a lump sum to help cushion the immediate financial impact that you may encounter. When life disaster strikes, huge surge of bills and lack of income can be a double whammy. These payouts can help to provide peace of mind for you to simply concentrate on getting well and not be overly stressed with the financial capabilities to manage the consequence of that illness or injury.
The payouts should also be meant to cater to a change in mindset. Many patients who have experienced these unfortunate issues often realize that life is preciously short. They may no longer want to slog their life for money but want to spend quality time with their loved ones. With the payout of these plans, one can comfortably budget for such ideals.
When considering Critical Illness Insurance, note the following:
- Is the amount of coverage fixed or does it decrease over time?
- Should you go for Term plans (cheap but fixed duration) or Whole life plans (expensive but cover for old age)? A contrarian advice: Buying Term plans and neglect whole life plans may not be a smart choice.
- How much to cover for yourself and your spouse? Consider the number of years you may need to recover/adjust your lifestyle downwards, extra medical costs not covered by your medical plans, and change in mindset cost.
When considering personal accident plans, note the following;
- Do the plans cover terrorism, riots or natural disaster?
- Do they cover for extreme sports injuries?
- Do they pay only when there is a physical loss of body parts or do they pay so long as the body part losses its function permanently?
- Do they cover your occupation? You will be surprised some insurer can void your claims even though they accepted your business under this clause!
You don’t want to marry as a burden, do you? You marry because you want to be a better self, and be a blessing to your partner. If not, why marry? Insurance is there to protect against unforeseen circumstances; don’t risk your financial future by gambling that you’re immune to accidents, large and small.
Before these unexpected issues become real-life problem, take charge and get it out of your way now! We have created a link in the forum for you to share your thoughts. CLICK HERE to post your questions or email us if you wish to remain anonymous.
In the next article: We will be sharing on how you can create your financial plan without feeling the stress. Case studies included!
For information about financial planning and money matters for your marriage, please visit Bliss Concepts at www.blissconcepts.mono.net.
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