How to Choose the Right Term Insurance Plan

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A term insurance plan helps you protect your loved ones’ financial future at a reasonable price. All you need to do is evaluate your financial needs and follow the correct procedure to find the right term insurance plan.

Usually, people check out only the premium amount when buying a term insurance plan and end up facing difficulties in getting the sum assured. To find the right term insurance plan, you need to check a variety of aspects such as financial stability, market reputation, etc. of the insurance company.

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In this post, we will help you understand how to choose the best term insurance plan while keeping certain factors in mind. These factors not only affect the premium amount but also give an idea of how to choose a term plan and where to buy it from. 

How to Choose a Term Insurance Plan in UAE?

Here are a few major things to keep in mind when buying a term insurance plan in the UAE.

  1. Sum Assured 
  2. Insurance Premium
  3. Add-Ons and Riders
  4. Claim Settlement Ratio
  5. Solvency Ratio
  6. Payout Options
  7. Customer Service
  8. Insurer’s Reputation

Sum Assured 

Make sure you analyse your insurance coverage needs before buying a term insurance plan. You must first evaluate the amount that would be enough for you in the coming years to fulfil all your financial needs. The insurance companies in the UAE offer term insurance plans with different tenures and benefits. Having a lump sum amount in mind can help you determine the sum assured you need and choose the term plan accordingly. 

Insurance Premium

The insurance premium amount plays a critical role when it comes to choosing a term plan. You must check the various insurance options available in the market and choose the one that offers lower insurance rates with the maximum number of benefits. However, keep in mind that the insurance prices do not reflect the reliability of the insurer. So, it is critical that you also check the other factors mentioned below.

Add-Ons and Riders

You can opt for riders and add-ons to cover different types of risks apart from death. The insurance companies offer add-ons for critical illness, accidental disability and more. Make sure you keep in mind your medical condition before choosing an add-on. The insurance companies in the UAE charge an additional premium for riders and add-ons.

Claim Settlement Ratio

The claim settlement ratio of an insurance company in the UAE shows the number of claims it has approved in the past few years. You must choose an insurance provider with a good claim settlement ratio. This helps you get the full sum assured on time based on the policy terms.

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Solvency Ratio

The solvency ratio also defines the insurer’s financial capacity to settle claims. Make sure you choose an insurer with a good solvency ratio. Such insurance companies have a higher value of assets in comparison to liabilities.

Payout Options

Make sure you check the premium payout options of the chosen insurance company. You can use the benefits of multiple payout options to pay insurance premiums based on your financial preferences. 

Customer Service

Good customer service plays a critical role when it comes to registering a claim and its approval. Make sure you perform thorough research on the type of customer service the chosen insurance company offers. A supportive customer service representative can answer all your questions related to your insurance policy, claims and other insurance factors in no time.

Insurer’s Reputation

Apart from checking all the above-mentioned factors, you must also check the reputation of the chosen insurance company. This helps you make an informed financial decision. 

You may also like this - Why Should You Consider Buying a Term Insurance Plan in Your 30s?

The Bottom Line

Now that you know how to choose the best term insurance plan while keeping in mind all the mentioned factors, it is time for you to buy one. Perform your research and find a term plan with extended coverage at reasonable insurance prices. You can visit our website to find the right term insurance plan based on your financial and medical preferences. And if you need an expert hand for the same, you can call our help and support team anytime to seek assistance. Our professionals will take you through the entire set of features and benefits of various term plans and help you buy the best-fit plan with great ease. 

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