Myths & Facts of Life Insurance Policies You Need To Know

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  | Published: 10 June 2020 | Last Updated On: 27 July 2021

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Life insurance is one of the best ways to protect your family against financial uncertainties like loss of income due to death or disability of a breadwinner. Having a  life insurance plan safeguards your family’s financial interest in times of distress.  

Despite all the advantages, a lot of people fail to understand the importance of this powerful financial tool that can take care of your family’s needs. There are several misconceptions related to life insurance. These need to be addressed to make people aware of how life insurance in the UAE can be beneficial in the long run. 

We are here to educate you on the truth about life insurance policies and help you evade misleading info that can hamper your financial planning. In this post, we have mentioned a few life insurance facts that may help you make a wise decision and get the most out of an insurance plan.

Most Common Life Insurance Myths & Facts

Let us go through some myths related to life insurance 

1. Life Insurance Benefits Can Be Availed of After Death by the Beneficiary Only

Providing your family members with a financial cushion to manage their finances when you are no longer around is one of the main objectives of buying a life insurance plan. However, that is not the only objective. The right life insurance plan enables you to build a shield for yourself against the lengthy medical bills and provides you with a comfortable retired life.

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2. Life Insurance is Too Expensive

This is one of the most common life insurance myths that people overestimate to the extent they don’t even consider buying it. But the truth about life insurance is that the insurance premium amount gets affected by various factors like age, location, medical condition, type of insurance, etc. And if they will consider it as financial coverage for the future, it will be a lot easier to add it to their budget.

3. I am Single, So I Do Not Need Life Insurance

The truth about life insurance is that it helps you even when you are alive. You might not need it for your family or dependents, but you still need it to plan your health and retirement. 

4. Only the Earning Member of the Family Needs Life Insurance

All your family members need life insurance. Your profile of being the breadwinner changes the insurance requirements and goals but does not eliminate its need for other family members.

5. A Group Life Insurance Policy is enough

Most people do not understand the ‘group life insurance’ term right. The fact is that employers provide group life insurance policies to their employees. These insurance policies stand valid only until the insured person is employed with the company. Once they leave the company, they are no longer covered under the insurance policy. 

A separate life insurance plan is a must to avoid any unpleasant surprises after leaving the current organization. And suppose the person relies on the group life insurance policy. In that case, they must check if the sum assured offered is sufficient to provide the financial support in any unforeseen circumstances.

6. People with Existing illnesses cannot buy a Life Insurance Policy 

Life Insurance in the UAE doesn’t work this way. Most insurance companies in the country offer life insurance coverage for people who are suffering from medical illnesses. These insurance companies consider the applicant’s medical history and charge higher insurance premiums based upon the same. 

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7. No Comparison is Required When Buying Life Insurance Plan

There are numerous life insurance companies in the UAE. All these companies offer a variety of life insurance plans with unique features and benefits. To find the right life insurance plan that caters to all your financial needs, you must consider comparing different insurance plans. The best part about life insurance in the UAE is that you can access the insurance plans online and compare them sitting right at your place. 

Another good thing is that you can get in touch with one of the aggregators available online, like policybazaar.ae. We at Policy Bazaar help you find the best-fit insurance plan matching your financial needs. You can visit our website, find a suitable life insurance plan yourself, or contact our helpline to seek assistance.

8. It’s better to save than to Invest in Life Insurance

People usually do not find life insurance plentiful beneficial. They prefer saving money in their bank accounts rather than investing the same in buying an insurance policy. Based upon the mentioned life insurance facts, we have observed that purchasing life insurance in the UAE has its own advantages like financial protection, peace of mind, and many others. Even if you do not find a life insurance plan that meets your budget requirements, your agent can provide you with multiple options and help you find one that fits all your needs.

You may also like this - 7 Amazing Facts About Term Insurance Policies in the UAE

Conclusion

Now that you know the truth about life insurance policies, you can easily ignore the myths spread around. The key is including a life insurance policy in your budget. This could be one of the finest financial decisions you would ever make. 

There are many resources that can help you find the best life insurance plan depending upon your preferences. Your best option is to log on to policybazaar’s website and find a plan that best fits your needs and budget.