Tips for Buying the Best Life Insurance for Your Parents

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

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The type of life insurance plans which is best for your parents depends on a variety of factors such as the age of your parents, their medical history, along with the kind of coverage they desire. Not everyone needs to necessarily buy life insurance plans for their parents, some people do and some just do not. It depends on your situation as well as your requirements.

For those of you who want to or need to buy life insurance plans for your parents, below mentioned are a few tips that will help you choose the right policy for them and the best deal possible.

Choose the Right Life Insurance Plans

Life insurance is a very general term. There are different kinds of life insurance plans available and their functions vary. Not everyone has the same goal which is why there is no one best policy for everyone. For instance, some people want a life insurance policy to pay off their existing debt, whereas, some people may want it to cover their financial expenses.

There are two types of life insurance namely whole life insurance and term life insurance.

Whole Life Insurance Plans

Whole life insurance is a permanent life insurance policy that is valid until the end of your life. It does not expire, unlike the term insurance policy.

The whole life insurance is for someone who prefers a policy for a longer time as it exists until the end of your life. However, the drawback of whole life insurance is the cost. It costs more than a term insurance policy. 

Below mentioned are the providers of whole life insurance plans in the UAE:

Provider

Life Insurance Plan

Cover

Union Insurance

The Sure Term International Life Insurance Program

  • Death Benefit
  • Global Coverage
  • 1 to 10 years of coverage

Noor Takaful

Life Care Plan

  • Death Benefit
  • Additional cover such as permanent total disability, critical illness, accidental death, and takaful contribution waiver.

Alliance Insurance

Whole Life Insurance

  • Level Premium Whole Life Plan
  • Limited Payment Whole Life Plan

Salama

Hyat Plus Whole Life Plan

  • Worldwide coverage
  • Up to the age of 100 years
  • Entry age 18 years
  • Maximum age of 74 years

Hyat Superior Whole Life Plan

  • No nil allocation period
  • Age between 18-74 years
  • Maturity at 100 years

Term Life Insurance Plans

Term life insurance is a policy that expires after a pre-specified period of time. Once the term ends, the coverage ends. A term insurance policy is ideal for someone who wants to cover a temporary liability. The biggest advantage of a term plan is that it is the least expensive kind of life insurance. However, the drawback being its expiry.

Below mentioned are the providers of term life insurance plans in the UAE:

 

Provider

Life Insurance Plan

Cover

Union Insurance

The Sure Term International Life Insurance Program

  • Death Benefit
  • Global Coverage
  • 1 to 10 years of coverage

Noor Takaful

Pure Protection Plan

  • Primary Takaful Cover
  • Additional cover such as permanent total disability, critical illness, accidental death, and takaful contribution waiver.

Alliance Insurance

Term Insurance Plan

  • Tenure of 10,20, or 30 years
  • Or until the age of 65 or 70 years

Salama

Hemaya Plus Term Plan

  • Most affordable
  • Customization of the plan with an accidental death benefit, permanent total disability, and much more.

The ultimate choice between the whole life insurance plans and the term life insurance plans depends on your requirements and needs. If you need to cover your temporary expenses, you should opt for something that is temporary, i.e. the term life policy and if your need is more permanent, you should opt for the whole life policy.

Maintain Your Budget

It is important to have maximum coverage, however, it is also important to keep your budget in mind while opting for any kind of insurance. It is not a good idea to take up more than you can afford. You should be absolutely certain about the monthly payment you opt for as per your budget.

Get Their Consent First

You cannot buy any type of life insurance policy for someone without getting their consent. The insured person must agree to the policy. Even if you are the one bearing the costs for your parents’ insurance, you still need their consent.  It does not require much of their time and effort, however, it is essential to get them involved.

Avoid Insurances without Medical Tests

There are certain providers that attract individuals with a guaranteed policy. This means that you do not have to go through the medical tests for such life insurance plans. However, just because the policy is guaranteed you should not go for it. These guaranteed policies are low-value and do not provide a good sum assurance.

Ideally, the medical tests are done so that the insurance provider can understand your health condition and provide you a plan that suits your needs the best. Therefore, it is best to go for a policy that requires a medical test so that you can opt for something that suits you the best.

Do Your Research

It is good to ask around your family and friends about the policy and the provider. However, you should also be open to insurers you haven’t heard about. This is because everyone has different requirements and needs if you find an insurer you have never heard about but it suits your needs with a good deal, you should be open to considering it.

Don’t Put This Off

When it comes to opting for life insurance plans, you simply cannot benefit from waiting. Therefore, if you are looking for insurance for your parents, it is best not to delay it.

This is for several reasons such as the elder you get the higher is the cost, the health of your parents is not guaranteed and if they get ill it could affect the premium rates you get, among many others.

If you want to pay less and get maximum coverage, you should not put off the task of opting for any of the life insurance plans for your parents.