Buy a term plan and secure your family
You take good care of your loved ones when you are there with them but have you thought of the time when you may not be around? How will your family fend of self in your absence? Life Insurance is a security that helps a family sail through difficult times in absence of the breadwinner.
So, what exactly Individual Life Insurance is?
Individual Life Insurance is a plan to provide insurance coverage for a single person. It provides a lump-sum amount to the family if the insured person passes away within the policy term.
Individual life insurance also helps cover the family members’ financial needs like paying their personal loan, car loan, mortgage, etc. It also provides permanent benefits like estate planning and tax-deferred savings.
Here are a few basic types of individual life insurance plans.
Individual Term Life Insurance provides the coverage for a specific duration starting from five and going up to thirty years. The term insurance allows you to choose the term and period depending upon your needs. The term life insurance also pays your nominees in case of an unfortunate death during the term duration.
Here are the benefits of taking term life insurance for individuals.
Permanent Life insurance covers the policyholder for the whole life as long as they pay their premiums. People mostly buy these types of insurance plans to save tax. They also opt for these life insurance policies to fund the trusts that support special needs dependants.
Here are the types of permanent life insurance.
Universal Life Insurance: Universal life insurance provides permanent life insurance cover for individuals. It allows policyholders to adjust premiums, interest rates, and payment schedules as per their convenience. The best part about this type of life insurance is that it enables policyholders to withdraw cash, take a loan, or adjust their premium payment once the policy accumulates sufficient cash value. However, making these kinds of withdrawals can affect your insurance coverage or premium later on.
Here are the benefits that universal life insurance for individuals offers.
Whole Life Insurance: This type of life insurance covers you from the day you have bought the insurance cover to the day you die. The whole life insurance for individuals accumulates cash value on a tax-deferred basis to help them increase the value of death benefits. The whole life insurance policy also gives you the advantage of accessing any available cash value during the policyholder’s life.
Here are the benefits of buying whole life insurance for individuals.
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Survivorship Life Insurance: Survivorship life insurance for individuals covers two people in a single policy. It pays nothing at the time of death of the first member. However, it pays the benefit upon the death of the other member. Therefore, the premium is comparatively lower than two different policies for both members. The parents who plan on funding a legacy for their children buy this life insurance plan, as it allows them to maximize the life insurance benefit.
Here are the benefits of buying a Survivorship Life Insurance for individuals.
Insurance companies in the UAE offer the best life insurance plans for individuals. You can perform research and check the benefits they provide to find the best life insurance plan for you. Ensure you check all the factors like the claim and renewal process, the claim settlement ratio, etc., before you make a purchase. Going through the current financial condition of the insurance company will also help you make an informed decision.
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