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How to Choose the Right Life Insurance Companies to Meet Your Needs

By PolicyBazaar
  | Published: 01 September 2020 | Last Updated On: 08 February 2021

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

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Life Insurance is an absolute must in order to secure the future of your loved ones on the rollercoaster of life. The insurance market in the UAE is quite diverse and offers different life insurance plans based on the needs of the customers. However, according to a survey, a large number of UAE nationals, as well as expatriates residing in the UAE, are not insured.

Very often a major reason behind not purchasing an insurance policy is confusion. Yes, you’ve read that right confusion! As the insurance market in UAE offers a plethora of insurance products it becomes difficult for customers to choose the right life insurance plan and provider.

Every insurance or investment plan requires rigorous analysis of long term and short-term financial goals before an individual proceeds and purchases it. If you are looking forward to purchasing a life insurance plan in the UAE but are stuck in the dilemma of choosing the right plan don’t worry, you’ve landed at the right place.

In this thread, we will discuss how can an insurance seeker choose the right life insurance based on the needs and budget. Moreover, we will be sharing some important tips and tricks that will help you to choose the right life insurance provider.

Choosing the Right Coverage

The first and foremost step that comes into picture while choosing the right insurance provider in the UAE is deciding how much coverage does one needs. The amount of sum assured will depend on your lifestyle, the number of family members, and other financial goals. Before you go ahead an choose the insurance provider it is vital to thoroughly analyze the mentioned points and then make the decision of choosing the provider.

Claim Settlement Ratio

The second most important point to be kept in consideration while choosing the right insurance provider is the claim settlement ratio. The claim settlement ratio also known as CSR is defined as the ratio of the number of claims submitted to the number of claims processed.

Remember, the higher the claim settlement ratio better the provider. Insurance seekers should try and choose a life insurance company that has a high claim settlement ratio. Insurance seekers should research online about the claim settlement of the life insurance provider before purchasing the policy.

Research Compare and Shortlist

As an aware consumer, it is our duty to thoroughly research and analyze insurance providers on the basis of different criteria before going ahead and making a decision. The internet is undoubtedly a boon when it comes to researching. Insurance seekers can make use of different online web aggregators to compare different insurance providers.

The second step after comparing different providers is to shortlist companies that fit well into your budget and meet all your needs. After you are done with shortlisting life insurance the next step is to choose the one that is best out of all the shortlisted names.

Unique Needs

Insurance needs and financial goals of an individual varies from one person to another and hence there is no perfect plan or life insurance provider. Insurance seekers should assess their financial needs and insurance requirements to ensure that they choose the right plan and provider in the UAE.

The insurance needs are quite dynamic and tend to change at different phases of life therefore insurance seekers should try to choose plans and life insurance companies that support and fulfill their different needs on the different stages of their life. Doing this will ensure that they manage to achieve their individual goals at different stages of life at an accelerated pace.

Outstanding Financial Obligations and Debts

An important reason for purchasing life insurance is covering outstanding financial obligations. If you have outstanding debts that you fear might burden your loved ones and family members when you are not around it is crucial to purchase life insurance.

Insurance seekers should assess their outstanding financial obligations and then choose the right provider and thereby the plan that suits their budget and fulfills the needs. Choosing the right provider will have a considerable impact on your outstanding financial debts. One should ensure that they choose the right amount of coverage that is enough to cover their debts.

Market Share and Customer Reviews

Last but not the least market share and customer reviews of insurance provides play a major role in determining the performance of a life insurance provider. Larger the market share better will be the performance of the company. Before making a decision, it is vital to analyze the market share of an insurance provider.

Secondly, customer reviews are the mirror image of a life insurance provider’s performance. Insurance seekers should try and choose providers that have the best customer reviews and ratings on the internet. Good ratings and customer reviews are evidence that the life insurance provider’s performance is satisfactory and it is preferred by customers.

Wrapping it Up

The thumb rule of choosing the best life insurance provider in the UAE is, to begin with, researching followed by analyzing the needs of the buyer and the significance of the provider. Try and choose a provider that fulfills your unique financial needs within your budget.