Short Term Disability Insurance - Short term disability insurance is a type of insurance plan designed to compensate for the lost income due to a disability
Buy a term plan and secure your family
Protecting our families financially usually becomes an important part of this back-up plan. In this case, a term insurance plan in UAE can prove to be quite essential. Term policy refers to an insurance tool, which provides financial safety in terms of sum assured to your loved ones in case something unfortunate and unexpected happens.
The majority of the term plans provide solutions that are customized to fit different situations. Listed below are some of the tips on how to choose the best term insurance in UAE.
No matter if you are the only breadwinner in the family or contribute in the collective income of your family, you should go for a plan that will be equivalent to the amount of income needed for the sustenance of regular bills for your family. Hence, you must determine your cover amount not just depending upon your income, but also the needs of your family.
Your family members who are dependent on you may change at different stages of your life. The financial responsibilities of a single unmarried person are different from that of a person who is married or the one who has kids too.
You must select the cover amount accordingly. Also, it is important that you keep an eye out for your future and plan for the rising financial responsibilities
For living up to the deal of providing monetary reimbursement, your insurance company must have a good claim settlement process. The claim settlement ratio refers to the numerical value that represents the number of claims that settled against the ones that are filed. A higher claim settlement ratio increases your chances of availing the complete amount of sum assured.
Before selecting the term insurance in UAE, it is important to consider the needs of your family for maintaining their lifestyle. In fact, when you keep the dependent members of your family in mind, the amount of cover depends upon the current lifestyle of your family big time.
You must assess the amount that will be needed for sustaining your present lifestyle. And, do not skip to include factors such as inflation, only then plan an appropriate life cover.
Other than the death benefit offered by the term policy, some of the plans also offer additional covers. These add-ons may include cover for employment loss, disability, waiver of premium, and more. You can add these additional covers to your plan by paying small amounts of additional premiums.
The individuals who are earning are usually under a piling burden of existing liabilities like personal loans, short-term loans, car loan, and/or home loan. For preventing the burden of EMIs falling on your family, it is important that you include the repayable amount of these outstanding loans in the coverage availed.
To Sum Up!
Our life is full of uncertainties that come without any warning. A term insurance plan in UAE may serve as a cushion for the financial security of your family. This plan may become an income replacement after your death for your family members. However, if you are confused about which plan to buy, go through the above-mentioned tips, which will help you in making an informed decision.