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7 Amazing Facts About Term Insurance Policies in the UAE

By Pardeep Garg
  | Published: 19 July 2021 | Last Updated On: 27 July 2021

Buy a term plan and secure your family

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Buying term insurance is not a lifestyle expense, it’s rather a basic necessity. It is important for us to make sure that it gets a place in our monthly budget. Thankfully, insurance companies in the UAE offer a variety of term insurance plans to cater to the needs of individual customers. You can easily get in touch with the providers to find term insurance policies that suit your financial needs.

With a term insurance policy, you do not get the maturity benefit, and your paid insurance premiums are provided later to your family members in the form of sum assured. Your term insurance policy not only provides the life cover and helps you fulfill your investment goals but also enables your family members to take care of their financial needs in your absence. It secures your family’s future and helps them maintain their living standards by living off the sum assured.

As buying a term insurance policy is a critical financial decision, we have listed here some untold facts you need to know to understand your plan better.

Here are 7 term life insurance facts that you must know:

  1. This is the Best Way to Securing Your Family’s Future
  2. Sum Assured of Up to 20 Times Your Annual Income Can Be Given
  3. Sum Assured Can Be Increased During the Plan Tenure
  4. Cover for the Age of Up to 85 Years Can Be Given
  5. One Day Claim Settlement
  6. False Disclosure Impacts the Claim Process
  7. Built-in Riders for Critical Illnesses

This is the Best Way to Securing Your Family’s Future

Taking a term insurance plan is one of the best options for securing your family’s future. It offers a lump sum amount of money for the beneficiaries to help them deal with their finances in case you are not there to provide. 

With the sum assured, your family members can deal with the expenses of a child’s education or wedding, unpaid debts, urgent medical costs, and much more. The insurance companies help you learn about the sum assured at the time of the policy purchase. Make sure you get to know all the term insurance terms and conditions in detail.

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Sum Assured of Up to 20 Times Your Annual Income Can Be Given

The insurance companies in the UAE offer a wide range of insurance products for life, motor, house, etc. Term insurance plans provide the highest sum assured among all the insurance products offered by the insurance companies. 

The best part about these insurance plans is that they come with an online calculator where you can enter your annual income and other financial information to find out the sum insured amount that you can get. Make sure you analyse your family’s financial needs and then opt for the term insurance plan that best fits in the same. Usually, the term insurance companies offer a sum assured of around 20 times your current annual income.

Sum Assured Can Be Increased During the Plan Tenure

At a different stage of your life, if you realize that you need to change your spending pattern based upon your needs, the term insurance plans let you do that. With most term insurance plans, you can increase the sum assured during the term insurance tenure. 

All the insurance companies offer this as an essential feature based on the fact that people have different financial needs at various stages of their life. They offer the life stage protection feature to give you an option to pay extra premiums and adjust to your changed lifestyle. With this feature, you can increase your sum assured at stages like marriage, child’s birth, etc.

Cover for the Age of Up to 85 Years Can Be Given

Everyone knows that they can take a term insurance plan not only in their early 20s and but in their late 50s as well. And they can take the benefits of the term insurance plans up to the age of 85 years. However, the policyholder’s age affects the amount of term insurance plan, but the best part is that they still get to cover the potential financial risk. 

One Day Claim Settlement

Most insurance companies settle the term insurance claims in one business day. They understand that your family need not go through any additional duress in the tough times. As term insurance is sometimes the only financial support for them, they must experience a quick and smooth claim settlement process.

False Disclosure Impacts the Claim Process

The insurers verify all the documents and the past medical history before approving a term insurance claim. Make sure you provide the correct information related to your lifestyle or illnesses if any. Hiding the prominent information can lead to falsification of facts and thereby rejection of the claims.

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Built-in Riders for Critical Illnesses

The best part about the term insurance plans is that they allow policyholders to add critical illnesses riders to their policies. These riders cover life-threatening illnesses like cancer, renal failure, heart attack, paralytic stroke, major organ failure, etc. 

You may also like this - Myths and Facts of Life Insurance Policies You Need To Know

The Bottom Line

Buying a is term insurance policy as easy as pie now. You can simply visit multiple insurers’ websites and take a look at all the available term insurance plans in just a few clicks. Most insurance companies now allow their customers to buy insurance plans online. 

To purchase a term insurance policy, all you need to do is provide the required documents and pay online premiums. Make sure you to choose an insurer with an easy claim process and a good claim settlement ratio. This will help your family members in getting the claim approved easily and quickly.

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