by Dexter Damien Chan

Created on: December 20, 2010

There are many types of insurance plans that cover for different type of risks or offer different type of benefits, so for any person out in the street, who is not trained in areas of insurance, how do you know what insurance do you need?

Let's explore in this article by looking at what concerns most people have, but do note that the negative aspects of the plans are not discussed as every individual is different when it comes to planning for insurance:

1. You Have Concerns Against Premature Death and Permanent Disability

If you have concerns against premature death and permanent disability, most likely, you are afraid of being a liability to your loved ones. And to get yourself covered in this area, you can basically look into Protection Plans like Whole Life Insurance, Investment-Linked or Term Insurance. So which one to choose?

- Whole Life Insurance

This type of insurance usually comes with profits from the insurance companies, in other sense, there's some conservative savings factor included in as well. So if you are one that would like to get some protection benefits and yet do up some savings in a conservative manner and tend to hold the plan in a longer time frame, whole life insurance plans would be your choice.

- Investment-Linked Plans

This is another type of insurance that generates profits from investment funds. As compared to whole life insurance, the returns are generally higher in the long run but definitely come with more risks throughout. If you are someone who is quite versed with investment instruments, then investment-linked plans would be your choice.

- Term Insurance

As compared to the above three, this is a plan that generates no profit returns. Purely protection benefits if there's any claims. If you survive throughout the policy term, the coverage usually ceases and you get nothing back. If your main concern is basically on protection or for short term, e.g. covers against a loan, then this plan will be the most suitable. For the same sum assured, term insurance offers the lowest premiums.

2. You Have Concerns Against Facing Any Hospital Bills or Critical Illnesses

- Health Insurance

For concerns like hospital bill coverages, you would definitely need a health insurance. Most health insurance plans would have some form of deductible and co-insurance in their main plans and also additional riders to waive off such requirements and provide additional benefits like cash or recuperation benefits.

To choose which plans, you have to know your

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