AED 100,000 cover starting at just AED 7/month

Term Life Insurance Is it Really Worth Buying?

By PolicyBazaar
  | Published: 20 November 2019 | Last Updated On: 08 February 2021

Buy a term plan and secure your family

Average Rating / 5 (ratings ) | 172 Views

AED 100,000 cover starting at just AED 7/month

Gender
Do You Smoke?
By Clicking on "View Quotes", I declare that I am a resident of UAE and holding a valid Visa and agree to the website Privacy Policy and Terms of Use.
Are you finally thinking about buying a life insurance policy? Well, the majority of the life insurance plans come with relatively high premium costs, the cost-effective premiums of a term life insurance may be the right option for you especially if you are in the early stage of your career.

At this point, you may not have too many family responsibilities but they might grow in the future. You may decide to start a family and want to secure their future. It is understood that your living standard will change so are your financial plans. In this scenario, paying higher premiums towards other life insurance plans might burn a hole in your pocket. During such time, you can opt for a term life insurance. An apt term insurance policy will provide financial protection to your loved ones in case of your untimely demise.

What is Term Life Insurance?

Term insurance is a type of life insurance policy that offers coverage for a certain period or a specific term of years. The insurer provides the sum assured to the beneficiary as a death benefit if the insured dies during the tenure of the policy. Most commonly, beneficiaries are the parents, wife, and children, mainly the people who are solely dependent on the insured’s income. Unlike any other life insurance policies, it is less expensive since it does not provide maturity benefits.

As a simplest yet comprehensive form of insurance plan, this type of insurance policy helps the policyholder to financially secure the future of their loved ones in an effective manner. Well, there are plenty of term life insurance plans are available in the UAE. You can choose any of them as per your insurance needs and affordability.

Advantages of Buying Term Life Insurance

There are plenty of benefits of buying term insurance and some of them are given below:

  • As compared to other life insurance policies, term life insurance plans offer low premium and high payout that will be affordable for the majority of the people.
  • It offers a life cover to the policyholder and financial protection to your loved ones against the risk of untimely death during the tenure of the policy.
  • The majority of the term life insurance plans offer additional optional coverage/riders in order to increase the coverage of the insurance plan.
  • The term life insurance provides the convenience and flexibility of choosing the policy tenure, premium paying modes, as well as premium frequency as per your suitability.
  • The insurance provider will provide the sum assured to the beneficiary(s) as a death benefit in case of an untimely demise. Thus, it offers financial protection to your family members.
  • Term insurance policies are quite easy to understand. Thus, it can assist you to go through with the policy’s terms and be well-prepared for all eventualities.

Limitations of Buying Term Life Insurance

Nothing is perfect in this world. Just like any other thing is finance, term insurance policy comes with certain limitations. And they are as follows:

  • Term life insurance plans don’t offer maturity benefits. Meaning that the insured will not get any refund if there is no claim during the tenure of the policy.
  • If the policyholder outlives during the policy tenure, there is no payout of a death benefit.
  • During the policy term, there will no contribution toyour income.

Why is a Term Life Insurance Necessary

Life is uncertain and you can predict everything in life. Some uncertainties can rip you off emotionally as well as financially. For instance, the death of the breadwinner of any family might cause turbulence in his/her family member’s lives.

That is where term insurance plan comes into the picture. Buying a term plan will help you in offering financial protection to your family members in case of your untimely demise. It offers the peace of mind that your loved one’s financial future will be taken care of in any eventuality.

Why Should you Buy a Term Life Insurance?

Ideally, you should buy a term life insurance especially if your loved ones are financially dependent on your income. However, the below specified people must purchase a term plan:

  • If you are financially independent and want to secure the financial future of your loved ones.
  • If you have dependents in your family such as parents, wife, and children and want to protect their future when you are not around.
  • If you are unmarried and soon you are planning to get married.
  • If you are a sole laborer in your family.

The Bottom Line

So, term life insurance is definitely worth buying if you want to secure the future of your loved ones in your absence. It ensures peace of mind by offering the sum assured as a death benefit to the nominee in case of your untimely death. Plus, it is less expensive when compared to other life insurance plans so you can easily afford it.