How A Life Insurance Policy Keeps Your Family Safe?

By Pardeep Garg
  | Published: 23 July 2021

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Purchasing life insurance for your family members is a complex blend of addressing a financial and emotional need. If you are starting a family, buying a life insurance policy might be a significant step towards ensuring your family’s safety from the curve balls that life may throw at you and them.

Life insurance acts as a safety net for your dependents if something untoward happens to the breadwinner. With a life insurance plan, the financial future of your family is secured when you are not there to take care of their needs.

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Let us take a look at the benefits of having a life insurance policy and how it can safeguard your family’s interests.

How to Protect Your Family with Life Insurance

The insurance companies in the UAE offer a variety of life insurance plans to help you protect your loved ones. You can buy a family protection plan to provide your family the financial security they need and deserve.

Here are more ways in which a life insurance policy can help protect your family’s future.

1. Provide Financial Stability

With a life insurance policy, you can have peace of mind that your loved ones will stay protected even in your absence. The death benefit of a life insurance policy can provide your family with a considerable amount of sum assured based on the policy terms and help them deal with their finances efficiently. Ultimately, the claim amount can help your family members maintain their current standard of living even if they have lost an earning member.

2. Provide Coverage for Final Expenses

You would never want your family to have trouble with expenses for funerals, caskets, cremation, burial plot cost, etc., upon your passing. With a life insurance policy, you can provide funds for all these expenses and help lessen the financial burden for your loved ones.

3. Make a Lifetime Income Stream

Family protection insurance plans offer the benefit of spreading the sum assured over several years with an annuity. This is another smart way of managing the claim amount and predicting your family’s yearly income. The best part about this benefit is that your family members can spread out the annuity payments for the rest of their lives, depending upon the terms and conditions of the insurance plan.

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4. Provide to Pay the Medical Bills

Life insurance helps your family members get rid of the substantial amount of medical bills during your hospitalization in case of your death from a health-related issue. Although managing finances is the last thing that comes to our mind after losing a loved one, it can surely create a challenge and additional pain. Paying off the medical expenses can help your family manage their finances during tough times.

5. Provide to Pay Off Debts

We sometimes take loans to deal with our finances. However, based on most of the bank’s policies, their dependants need to pay the remaining loan if the borrower passes away. This can create an additional burden for them. But if the borrower has bought a life insurance policy, the insurance company will pay the debts of the policyholder. This is another way you can help your family if you have taken any loans.

6. Fund College Savings Account

You can also use a part of your life insurance policy benefits to create a college savings account and keep your child’s education on track when your family is short of funds. You can get in touch with your insurer to know more benefits related to the college savings account.

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The Bottom Line

Buying a life insurance plan is one of the cost-effective ways to provide additional benefits to your family. Although no amount of finances can cover for the loss of a loved one, having an insurance plan in place can provide them at least some respite.

Make sure you compare different types of life insurance and options to find the plan that best fits your preferences. Get in touch with various insurers and aggregators to buy an insurance plan with the maximum benefits.

Begin with assessing your family’s expenses to get an idea about how much they will need in future. You can also use online life insurance assessments and calculators to find out the life insurance policy amount your family would need after your demise.

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