Buy a term plan and secure your family
An apt term insurance plan can offer you the high sum assured that will be enough to replace your income if you are no longer in this world.
However, when it comes to buying a term plan, most of the people are often confused about the amount of life cover that they should opt for, which plan to purchase and from which insurance company? To help you make the well-informed decision, here we have mentioned a few important tips:
The number of dependents in your family may vary at different life stages. Therefore, the financial responsibilities of a person do not always remain as that of a married person or a person with kids. So, the amount of life cover should be selected accordingly. Do not forget to consider the future & plan for increasing financial liabilities. This will certainly help you opt for an apt life cover amount which will ultimately help your family members in your absence.
No matter you are a sole breadwinner of your family or just a contributing member who gives some portion of his/her income to a family, opt for a life cover amount that is equal to the amount of income needed to sustain everyday’s expenses for your family.
With the modern lifestyle, most of us opt for a home loan, car loan, mortgage or any other type of finances to meet the basic lifestyle needs of our family. So, add such liabilities to the cover amount in order to prevent the burden of EMI repayment from falling on your family’s shoulder after you are gone.
To ensure the financial protection to your family in your absence, Life Insurance Company should have a good claim settlement ratio. Basically, the claim settlement ratio is the numerical value that represents the number of settled claims against those claims who have been filed. The higher the claim settlement ratio, the better will be the chances of receiving the sum assured amount.
Apart from offering a death benefit, some of the term insurance plans offer optional coverage in the form of riders that can be availed by paying extra premiums. Riders such as critical illness, income benefit, waiver of premium, permanent and partial disability cover, accidental death benefit, etc are some of the main riders offered in the UAE. These riders basically enhance the value of your basic term insurance plan.
The Final Verdict
Well, there are plenty of life insurance companies in the UAE that offer term plan. So, choose the plan by keeping the aforementioned tips in your mind to ensure the financial stability and security of your loved ones in your absence. This will certainly help you opt for the right term insurance plan as per your need and budget.