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Can You Afford Not to Have Term Insurance?

By PolicyBazaar
  | Published: 10 December 2019 | Last Updated On: 08 February 2021

Buy a term plan and secure your family

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AED 100,000 cover starting at just AED 7/month

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A lot of people tend to have a mindset that term insurance plans are not beneficial and just a waste of money. Negative preconceived notions often abstain people from buying term insurance plans in the UAE. Contrary to popular beliefs, a term insurance plan is a must-have. We all know life is highly unpredictable and we face a lot of situations that are just beyond our control but we can always choose to take necessary preventive measures and term insurance plan is one step towards it.

With a suitable term insurance cover, you can ensure financial security for your loved ones. So if you also believe that term insurance is not the right decision to make then you are just in the right place. Today in this article we’ll talk about the affordability and various aspects associated with a term insurance plan.

What is a Term Insurance Plan? And how it Works?

A term insurance plan provides coverage for a given period called term. If the policyholder passes away within the given term of the policy, the nominees would receive a death benefit. If the policyholder survives the given period of the policy, then the nominees are not entitled to receive any benefit against the policy. However, the policyholder always has the choice of renewing his term plan to receive the returns of the insurance plan.

Hence, in case of the premature demise of the insured, the term insurance plan provides financial security to the family by providing a safety shield during a hardship.

There are various advantages of buying term insurance plans, the primary one being that these plans offer a high coverage amount at low premiums when compared to any other type of insurance plan. Term insurance plans are highly flexible and come with a wide range of choices to select. This policy comes in handy in paying off those unavoidable expenses such as outstanding loan EMIs, child’s education fees or other debt, in case of a catastrophic event leading to death or disability to the sole earner. Hence, term insurance plans solve the financial dilemma of your family and take care of all their needs in your absence.

According to the statistics from multiple life insurance providers, the most selling life insurance plans of all time are term insurance this is mainly because these plans are the simplest of all types of insurance plans and easy to afford.

Yes, you’ve read it right ‘EASY TO AFFORD’. Term insurance plans are the least expensive plans in the entire category of life insurance products. This is because term insurance plans only provide death benefits making them fundamentally simple plans. The monthly amount that is to be paid by the insured depends on several factors. These factors include your current age, your health status, and your income. With term insurance, the thumb rule says ‘more early you start, more affordable is the plan’. To put this in simple words, people who buy term insurance plans at an early age, have to pay a lesser premium in comparison to those people who have crossed a certain age.

The Bottom line

Among the different life insurance policies, term insurance is the purest form. If you are the only breadwinner of the family, then purchasing a term insurance plan can be the wisest decision you can go for.

Buying term insurance is a simple and hassle-free process, you can do it online. The benefit of buying a term insurance plan online is that you can compare different insurance providers and choose the best plans as per your requirements.

If you are still considering skipping a term insurance plan, think twice about your loved ones and their future. It might help you to make a wise and better decision.