Life Insurance Coverage in UAE

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We all need a protection plan to help secure our future. Insurance is a necessity in the times we are living in. It becomes the tool to safeguard the future of those who depend on you for their survival. In the event of the insured’s untimely death, life insurance coverage takes care of the financial interests of the family. 

Having a life cover ensures that all your financial needs in the future are met but at the same time it makes sure that your family does not have to stress over the source of income once you are no more. 

Life insurance providers in the UAE offer a wide range of life insurance policies like ULIPs, term life insurance, whole life insurance, endowment policy, among many others. The life insurance coverage of each of these policies varies from one another and it depends on the policy seeker’s medical history, annual income, age, etc 

What is Life Insurance?

A life insurance policy is a form of agreement between two parties- the insurer and the policy seeker. The two parties agree that the insurance provider will offer a death benefit in the event of the unfortunate demise of the insured if the policy is still active, that is, it has not expired. In exchange for this promise, the insured is supposed to pay a specific amount known as premium regularly. 

Life Insurance in UAE

While death is an inevitable truth, and the death of a loved one can never be supplemented, but an appropriate life insurance policy helps to offer some solace to the family. It offers a sense of financial stability even if it cannot make up for the emotional loss of a loved one. 

Life cover offered by insurers in the UAE is yet to reach its peak in the country as surveys show that about half the country’s residents still have not bought a life insurance policy. There are a variety of reasons contributing to these low numbers of policy holders. However, in recent times, the insurance industry in the UAE has proved to be extremely competitive with the international markets, boosting the market for insurance in the country. 

Why is Life Insurance important?

The requirements of people vary according to each individual’s circumstances. Depending upon these factors, a life insurance coverage is a form of financial investment that will make sure that the financial future of your family is protected in the face of a critical illness or death of the insured.

A lot of people avoid buying life insurance either because they don’t know how to, or are confused about which one to buy. So. a lack of awareness and understanding about insurance becomes a hindrance in people opting for a life cover. Some people even believe they are invincible and therefore a life insurance policy is futile. The possibility that will not be able to take care of their family one day has yet not featured in their list of things to think about. 

But gambling with the future and financial support of your family is not the wisest idea and we strictly suggest against it. 

A life insurance coverage is like a shield that offers protection to you as well as your family. It offers many benefits, like:

  • Is a good way to invest your finances
  • Protect your family under unfortunate circumstances
  • Covers debts like education loans, mortgage, credit card debts, etc
  • Protect the family’s assets 

Benefits of opting for a life cover timely:

The unique circumstances of an individual require unique insurance covers. While some people buy life insurance for investment purposes, others do it getting life insurance coverage in UAE is a means to protect their families from an unexpected financial crisis due to sudden death or terminal illness. 

The insurance business suffers a lot due to the many myths surrounding it. The excessive prices, the tons of paperwork, the extensive waiting period scares a lot of people away from buying a life insurance coverage. The confusion clouding people’s minds is a massive factor contributing to many people not buying life insurance policies. 

However, educating yourself a little on the subject by doing a simple online research will help you understand the many benefits of getting a life cover. But more importantly, doing it while there is still time will help you reap its manifold benefits like:

  • Building the value of the policy over time
  • Allowing you to pay off your debts timely
  • Offering financial support in the events when you need it the most like that of an illness
  • Accumulating money so that you can invest further for example in real estate

Life insurance policies available in the UAE are an extremely effective way to obtain money for several financial needs. So, Hurry! 

Some additional benefits to life insurance coverage:

  • Disability- In case of partial or permanent disability, a lump sum payment is offered
  • Critical illness benefit- lump sum amount is offered upon diagnosis
  • Dismemberment- Some life insurance coverage also offers support for accident loss of a limb or organ
  • Hospitalization- Some life covers offer support during hospitalization of the insured
  • Waiver of the premium- This benefit ensures that the life cover will continue even if the premiums are not paid due to an accident or any other reason for incapacity for payment. 

The DOs and DON’Ts of a life cover in the UAE: 

DOs

DON’Ts

Choose wisely between Term and Whole life insurance on the basis of your needs

Be in a hurry when selecting the coverage you need

Carefully check what you are owed by the insurer

Forget to discuss the tax implications of your policy

Check if the company offers the option of ‘waiver of premium’

Forget to review your life insurance policy on an annual basis

See if a joint policy will work better for you as opposed to a single policy

Forget to opt for a critical illness cover

In a Nutshell

Choosing life insurance coverage can be a daunting task indeed but a little bit of awareness can make it a smooth ride. Carefully walk through the maze of information available and select the one that are most suited to you and your needs and we are sure you will soon find the best life insurance policy to protect you and your loved ones.

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