Buy a term plan and secure your family
The biggest concerns for most of us are always about the people we have familial ties with. This distress is magnified in case of a breadwinner who is responsible to provide for everyone. In a situation like this, the constant thought of your family getting into financial trouble in the event of your untimely demise can cause a lot of stress. Term insurance is a smart and affordable financial alternative that can help in taking this burden off of your shoulders. Term insurance for your family is meant to offer financial support to your dependents. Let’s go over some important factors and plans that you must know about before opting for term insurance for family as a financial alternative:
The idea behind having a term life insurance plan is to empower the dependent family to sail through if the policyholder passes away. A basic term life insurance plan will help you do that as well. If you are the sole breadwinner of your family, you can take a term life insurance policy to ensure that your family will receive financial help in the form of death benefits.
Unlike normal term insurance for your family, the beneficiary of a child term insurance plan is the children themselves. Parents who buy the plan are supposed to pay the premium. Upon maturity of the plan, the beneficiary, i.e., the child, gets the accumulated sum from the term plan. This amount can be used for paying off student loans, university fees, or for any other purpose at hand. This is the best possible term insurance for the family that you can take to secure the future of your children.
A joint or spouse term insurance plan is designed to cover two working members of a family. If you and your spouse both work and are breadwinners of the family, you can choose a joint term insurance plan to cover you both. Joint term insurance for a family is far more affordable and offers great death benefits to your family. This way, you will not only be able to save more of your current income but also ensure that your family and dependents receive handsome compensation as a death benefit.
If you are trying to find term insurance for your family that will not only offer death benefits but also bring in investment returns, then ULIPs are the right choice for you. In unit-linked insurance term plans, a part of your premiums is invested in ventures and the returns are added to your account as benefits of the term plan. If the insured person, i.e., the policyholder, meets their demise during the tenure of the plan, unit-linked insurance plans offer a death benefit.
After your demise, your debts may fall upon your family. To prevent this situation, you can opt for a decreasing term insurance plan. A decreasing term insurance plan is set as per the current due loan amount you may have in your name. As you keep repaying the debt, the premium of the plan keeps decreasing over time. A decreasing term insurance plan is the perfect way to make sure that your family never suffers from repaying your loans and debts.
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Weigh the Requirements of Your Family: Every family has a unique structure and hence unique needs as well. This means that one of the most important things you need to do to buy the right term insurance for your family is to examine your individual, unique needs of yours.
No, term insurance is meant to cover an individual only. In the case of joint term insurance, two people (spouses) can be covered by the same plan. However, no term insurance plan can cover the whole family under one policy.
No, most term insurance plans can only be bought by employed people who are the breadwinners of the family.
Yes, the majority of term insurance providers require you to submit proof of income when you go out to buy a plan.
The children themselves are the beneficiaries of child term insurance plans. Parents pay the premiums of the plan and the maturity benefits are received by the children.
Yes, most child term insurance plans allow you to make withdrawals before the plan matures. However, this depends on each plan and provider independently.
Yes, many insurance companies allow earning individuals to add their non-working spouse to a term insurance plan. You can either buy a joint term insurance plan or get two separate plans.
Critical illness benefits and terminal illness cover are two of the most common riders available with most term insurance plans in the UAE.
Yes, just like any other type of insurance plan, term insurance in the UAE can be cancelled at any time you see fit.
No, a decreasing term life insurance plan only covers your remaining debt, if any. Dependents do not get any death benefit compensation here.