How to Opt For Life Insurance at Cheap Price in the UAE
Life insurance is indeed the best possible way to safeguard the future of your family when you are not around. Your insurance company ensures to take care of your loved ones in your absence and provide them the much-needed financial support so that they can meet all of their financial requirements without taking any financial burden.
But unfortunately, life Insurance price is one of the biggest reasons why people in the UAE avoid opting for it. Many people believe that it is costly plus it is not that much required. But this is not the case. It is the most important type of insurance policy that one should opt for to protect the future of their loved ones financially. And the best thing is that, with the availability of multiple life insurance companies in the country, most of the life insurance providers have begun pricing their products competitively. It has ultimately worked to the benefit of policy seekers as they can now avail life insurance at an affordable premium. Along with the affordable price tag, the life insurance price can even be brought down even more by just following the below-mentioned handy tips:
1. Opt for a Term Life Insurance Plan
Life insurance is available in the UAE in different forms. You can select from the term insurance plan, Unit-linked insurance plan, whole life insurance policy, and endowment plan as per your insurance need and convenience. However, term insurance plan is amongst the cheapest type of life insurance policy that is also known as a pure protection plan. It offers comprehensive coverage at the low premium.
Under the term plan, the insurer offers a sum assured as a death benefit to the nominee(s) upon the untimely demise of the policyholder during the policy tenure. But please note that there is no maturity benefit will be offered if the insured outlives the policy term. Despite this minor downside, a term life insurance policy is an ideal option considering its cost to benefit ratio. So, if you are a sole breadwinner of your family, then opt for a term insurance plan to get access to a life cover at an affordable premium.
2. Buy Life Insurance Policy When You’re Young
Irrespective of a life insurance policy you opt for, you must purchase it when you are young so as to take the benefit of a low price. Reason being, the life insurance price increases with age. Meaning that, you can get life insurance at a lower premium in your 20s and 30s as compared to 30s and 40s because the insurer considers you less likely to claim at a young age.
3. Maintain a Healthy Lifestyle
Most of the life insurance companies require a medical test when you enter the cover after some specific age. In fact, few insurance providers may also require a medical test if the insured has chosen a high sum assured. The premium costs will be assessed on the basis of the health condition of the policy seeker. Therefore, maintaining a healthy lifestyle will help in reducing the life insurance price. This is mainly beneficial if you are opting for a life insurance policy after the age of around 45 years. Maintaining a healthy lifestyle can help you to save on life insurance premium no matter what type of policy you have chosen.
4. Compare Different Life Insurance Companies and Plans
Just like other insurance policies, the best way to get life insurance at a cheap price in the UAE is to shop around. There are several life insurance companies are available in the insurance market. Each of the insurers has its list of life insurance products in different forms. But, you should never opt for a life insurance policy on the recommendations of your near and dear ones or on the basis of advertisements. Because one size fits all theory doesn’t apply here and the chances are quite high that the life insurance policy that is recommended to you might not be enough to cover your insurance requirements. So, in order to opt for the best life insurance policy at an affordable price, you must compare all the available options based on offered tenure, benefits, claim settlement ratio, and life insurance price. After a thorough comparison, choose the one that provides comprehensive coverage at an affordable premium.
5. Select Annual Premium Payment Option
Life insurance providers offer several types of premium payment options. For those individuals who cannot afford to pay a single installment of annual payment, most of the life insurance companies provide the flexibility for paying premiums on a monthly, quarterly, and semi-annually basis. However, most of the insurers often impose additional charges on all of these premium payment options. So, if you opt for a monthly, quarterly, and semi-annual premium payment option, your premium is likely to be a little costlier. Therefore, it is advisable to select the annual premium payment option if you can easily afford to pay it in one go.
6. Quit Smoking
Life insurance price is more for smokers as compared to non-smokers since the life insurance company considers such individuals risky and they are prone to serious illnesses. Thus, smokers are more likely to make a claim. So, stop this habit as it can help you to avail life insurance at a cheap price. In addition to this, it is good for your health. In order to eligible as a non-smoker on your life insurance policy, you must have stopped using all the nicotine products for the last one year that includes e-cigarettes and other nicotine replacements.
7. Renew Your Life Insurance Policy on Time
Never forget to renew your life insurance policy as forgetting it can often turn out to be a costly mistake. If your insurance policy lapses, you might have to begin over everything right from the application procedure. In such circumstances, you will have to pay a premium based on your current age. Therefore, the overall life insurance price can be expensive if the policy lapses. Although, the majority of the insurance companies send reminders to their customers via email when it is time to renew a life insurance policy. All you are required t renew your policy on time. And if, in case, you are not satisfied with your current life insurance company, then you can switch to other company instead of letting your policy lapse.
The Final Words
While you must keep in mind all the aforementioned tips to save on life insurance premiums when looking for a life insurance policy, it is equally vital not to compromise on the various features and benefits to get apt life cover.