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Buy a term plan and secure your family
Life is all about the happy moments that we enjoy with our family members. But sometimes these happy moments can be disrupted with an unfortunate event such as premature death, leaving your loved ones high & dry. That is why, it is very important to opt for life insurance to protect the future of your family members who are financially dependent on you. By investing in a life Insurance in Dubai, you are protecting your loved ones tomorrow. It compensates against the monetary loss that is suffered in an event of untimely demise.
Moreover, life insurance plans in the UAE assist in meeting your various life goals effectively. For example, there is a child insurance plan that enables you to create a secure financial corpus for your children. Just like that, there are pension plans that help you to create a retirement fund and ensure lifelong incomes. Therefore, life insurance policies find a place in every aspect of your life and offer you and your family much-needed financial protection.
Well, life Insurance in Dubai comes in several variants which consist of different types of life insurance policies. Along with all these variants, term life insurance is often compared with other types of life insurance plans. Is a term plan similar to other life insurance policies?
No, it is not.
Though the term insurance plan is a part of a life insurance policy, it differs from other types of life insurance policies in many aspects. So, let’s understand the key difference between term insurance and traditional life insurance in detail. Hang on to this thread to further find out details on term vs. life insurance.
Now you must have understood the basic meaning of both these insurance plans. Let’s understand the key difference between a term insurance plan and traditional life insurance plans. The significant differences between these two policies can be outlined in the following manner:
Variant’s Name |
Meaning |
---|---|
Level Term Plan |
Term insurance plan where the sum assured does not change during the policy tenure. |
Increasing Term Plan |
Term insurance plan where the sum assured get increased throughout the policy term. |
Decreasing Term Plan |
Term insurance plan where the sum assured get decreased throughout the policy term. |
Return of Premium Term Insurance Plan |
Term insurance plan where the insurance premiums paid throughout the policy term are refunded back if the policyholder survives until the maturity date of the plan. |
Henceforth, term insurance plans are divided into 4 variants based on the coverage they offer. However, the main objective of all 4 variants remains the same which is to offer financial protection. But in the case of traditional life insurance in Dubai, different variants meet different life goals. For example, endowment plans enable you to create wealth via assured returns while child plans ensure a corpus for your children even in your absence. Money-back insurance plan offers you liquidity while unit-linked insurance plans assist you to gain investment returns. Therefore, you can opt for different life insurance in Dubai as per your different life goals.
Life insurance plans help in safeguarding the future of your loved ones when you are no longer around to look after them. It helps in setting up a safety net for your future as well as the future of your loved ones. It helps in ensuring that your dear ones always get the financial support that they need and deserve. Life insurance comes in many types and forms typically to cater to the dynamic needs of the policy seekers, such as:
The following are some of the key benefits of life insurance plans.
A term insurance plan is the most basic type of life insurance policy that covers the risk of premature death. In an event of premature death of the policyholder during the policy term, the term plan promises to pay a sum assured as a death benefit to the beneficiary(s) or family members. Term plans offer higher coverage at affordable premiums enabling you to avail a higher sum assured which would be enough to fulfill your loved one’s various financial needs in your absence.
The following are the key benefits of a life insurance term plan:
When we talk about life insurance vs. term insurance, it is not right to choose any of the plans over the other. A term life insurance plan is a must for everyone, as each and everyone needs some kind of financial security against the possibility of a premature demise. In the case of the other life insurance plans, each has a different set of target customers, so it’s important to know your requirements and risk appetite before jumping into any contract. However, the basic difference between term insurance and life insurance is as follows:
Key Features |
Term Insurance |
Life Insurance |
---|---|---|
Premiums |
Cost-effective and affordable. In fact, it is the cheapest type of life insurance policy. |
Premiums are quite higher when compared to term insurance. |
Coverage |
Covers only premature death. |
Premature death & maturity benefits are covered until the policy term. |
Death Benefit |
Under the term plan, death benefits are payable. |
Under other life insurance policies, death benefits are payable. |
Maturity Benefit |
Not payable usually |
Payable under the majority of life insurance plans |
Flexibility |
Not flexible |
Very Flexible |
Term |
Usually ranges from ten years to up to forty years. |
Usually ranges from five years to up to thirty years. |
You may also like this - Term insurance Vs Permanent insurance |
Term plans are really different from other kinds of life insurance plans. You should know the difference between these two before opting for any plan as per your coverage needs. Term insurance has a universal need and you should not miss it. In the case of other life policies, it is important to assess your needs before opting for any plan. The plan you opt fo should aim at fulfilling your financial long-term goals.
To Sum Up
So, assess your financial needs as well as know the advantages and disadvantages of a term plan and traditional life insurance in Dubai. Along with this, know the life insurance and term insurance difference and it will help you to make a wise decision on which insurance policy to opt for.