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Comparing Term Insurance: The Right Approach

By PolicyBazaar
  | Published: 17 February 2021 | Last Updated On: 19 February 2021
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AED 100,000 cover starting at just AED 7/month

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Term insurance plans are considered as the most basic insurance product that is designed to mitigate the degree of risk associate with one’s life. These plans provide financial protection in case of an unfortunate event leading to the demise or disability of the policyholder. With the right term insurance plan you can safeguard the future of your loved ones and ensure that they do not struggle for mere necessities when you are not around to look after them.

The best part about term insurance plans is that they are quite affordable and user-friendly which makes them popular amongst customers. Furthermore, term insurance plans come with adequate flexibility in terms of mode and frequency of premium payment. However, a major downside in case term insurance plans is that these plans come with zero maturity benefit.

Insurance providers and market in the UAE is transitioning gradually to offer the customer the kind of products they are looking for in real-time. As a result of this transition, the market is filled with numerous plans and providers that make it difficult for users to choose the right plan and provider out of the wide array of choices available in the UAE.

The best and easiest approach to counter this problem is to compare different providers and plans to choose the right product out of the available choices. Comparing term insurance plans not only allows buyers to choose the best plan based on the features but also provides detailed insight about different plans. In this blog, we will talk about the right approach to talk about the benefits of comparing term insurance plans.

Choosing the Right Term Insurance Plan

The internet has allowed us to explore multiple choices simply with the click of a button. Whether you are planning to order a pair of shoes, or book a luxury hotel, or purchase a term insurance plan you have a wide array of choices available.

Very often customers are unable to identify the vital factors that should always be considered while choosing a term plan. In this section we will talk about the key factors to be considered, and how exactly do they affect the plan and the buyer.

Sum Assured

The first and foremost factor that plays a key role in choosing the right term plan is the sum assured. Initially, as a buyer, it is vital to assess your requirements and choose a plan that fulfills them. The amount that is payable as the sum assured should be enough to take care of your family’s financial needs which include repayment of debts, paying for children’s education, and ensuring a comfortable and peaceful life.

Auxiliary Riders

The basic term insurance plan offers coverage only if the demise has occurred due to an illness or naturally. Auxiliary riders or add-ons provide additional coverage above the basic plan to enhance the protection quotient of term plans by paying extra. There is a wide range of riders available in the market; some of the most common ones are as follows-

  • Critical Illness Coverage
  • Accidental death benefit
  • Permanent Disability benefit
  • Waiver of premium

Choosing a rider will enhance the protection quotient of your plan and ensure a guaranteed payout in case of any unforeseen event.

Payable Premium

The payable premium for term insurance is another crucial factor that ensures that you choose the right plan. You might find a plan that fits your needs and fulfills all your requirements but is out of your budget. Therefore, the payable premium turns out to be one of the most important factors in choosing a term insurance plan.

Benefits of Comparing Term Insurance Plans

As mentioned earlier, comparing different plans and providers is one of the most effective strategies to choose the right insurance plan. In this section, we will shed light on some of the major benefits of comparing term insurance plans-

  • Comparing term plans allows the buyer to get a detailed insight into the features, benefits, and pricing of different plans.
  • With the approach of comparing term insurance plans buyers can choose a plan that fulfills their needs and at the same time fits their budget.
  • You can explore different unique features of different plans and choose the one that suits you
  • By analytical comparison, you can save money on the premium of a term insurance plan

How to Compare Term Insurance Plans

Comparing term insurance plans might appear to be a daunting task at first. However, it is quite simple to compare and choose the right plan. Here’s a quick step by step guide to compare term insurance plans in the UAE-

  • The first step is to explore different available options
  • In the next step shortlist different plans that fall in your category based on the payable premium, features, and coverage
  • In the next step, the buyer needs to filter all the shortlisted options based on distinct features, claim settlement ratio, and customer reviews
  • The final step is to verify and check the details to make sure that the comparison is valid

The Final Verdict

It is quite clear that comparing term insurance plans allows buyers to make an analytical analysis that helps them to choose the right product. This approach not only saves buyers money but also ensures that they get the best product in terms of price, features, benefits, claim settlement, and customer reviews. Always remember, the right term insurance plan will safeguard the future of your loved ones even when you are not around to look after their needs.