Consider the following situations:
1. You are changing the job and there is a gap between leaving the existing job and joining a new job.
2. Due to high costs, employer does not provide cover to family members or limits the amount of cover.
3. You do not like the current job and have no job in hand. You would like to take a break.
4. You want to pursue higher studies; though you are likely to be hired again once your study is finished, as of now you are not an employee and consequently employee related benefits are not available.
5. You would like to retire early. Employer provided cover ceases and you have to buy a cover yourself. You may be uninsurable because of existing health situation or pre existing conditions may not be covered or premiums could be exorbitantly higher.
6. You would retire at the age of superannuation. Employer provided cover ceases and you have to buy a cover yourself. You may be uninsurable because of existing health situation or pre existing conditions may not be covered or premiums could be exorbitantly higher. Even worse, you may not be provided with a cover because of age limitation. When you need an insurance cover most you will be denied that option.
7. You are fired from the job because of health/disability reasons. You neither have a job nor an insurance cover.
I have personally come across people struggling to manage in the above situation.
What’s the alternative? If you do not link insurance and investment, you have several choices. Term insurance in case of life insurance and family floater plans in case of health / personal accident / disability cover.
If you are an employee who is complacent with employer provided cover, think again. Talk to a financial planner today to assess your situation.
