Top 10 Ways of Saving Money on Life Insurance in the UAE

By Krunal Gandhi
  | Published: 26 October 2021

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Shopping online surely comes with a lot of options, but you can’t make the right choice until you know what you are looking for. Most people still do not know what they exactly need to look for in life insurance plans. They just look for the coverage amount and the insurance policy term and buy a regular insurance policy. However, if they explore more, they can find the best life insurance savings plan with excellent features and benefits.

Keep reading to find out a few things that you can consider looking in your life insurance plan if you want to save money and pay a reasonable insurance premium.

Top 10 Effective Ways of Saving Money on Life Insurance in UAE

Most insurers in the UAE offer life insurance savings plans that can be a lot less expensive than you must have ever thought. You just need to shop around and find them. 

Here are a few ways that you can follow to save a remarkable amount on your life insurance policy.

1. Shop Around to Explore More Options

The best way to save money on a life insurance policy is to shop around and explore more options. You must compare the prices of different life insurance plans with their features and benefits. There are various factors such as required age limit, claim settlement ratio, claim registration process, etc., which you need to consider when comparing the life insurance plans. Make sure that you check your chosen insurer’s financial stability and the level of service they offer. 

You can also use the life insurance EMI calculators available online to find out the amount of your monthly installment. With this information, you can analyze your finances and choose a life insurance plan with lower insurance premiums as per your budget requirements.

2. Opt for a Term Insurance Plan

You can consider buying a term insurance plan if looking for something with lower insurance rates. Term insurance plans come with various additional benefits such as a fixed death benefit and fixed premium amount. However, they do not provide any maturity benefits when the term ends. 

Despite this fact, a term insurance plan is the best option for those who have dependents as they get the sum assured in the event of disability or death of the policyholder. 

3. Buy an Insurance Plan at Young Age

You can choose to buy a life insurance plan at a young age and take advantage of paying lower insurance premiums. Even term insurance plans are cheaper when bought at a young age. The best part about a term insurance plan is that the insurance rates do not increase with the age of the policyholder. For example, if a policyholder enters a term plan at the age of 30, the premium amount will remain the same until the policy term ends. Considering this fact, you can buy a term plan early and save money on insurance premiums.

4. Opt for the Right Term Duration

Your term duration plays a critical role in evaluating the insurance premium amount. You must buy a shorter duration term insurance plan if you want to get lower insurance rates. The longer the term duration will be, the higher the insurance rates you will have to pay. 

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5. Choose the Right Sum Assured

Make sure you choose the right sum assured amount. The higher amount you will choose, the higher the insurance premium would be. To figure out how much sum assured you need, you can simply write down your expenses and other liabilities and make an estimate of what amount your family would need to maintain their standard of living in the event of your demise.

6. Quit Smoking

Your general lifestyle affects your insurance premium in different ways. Make sure you maintain a healthy lifestyle and go through all the medical tests that your insurer asks you to. Smokers usually have to pay higher insurance rates as they are more prone to falling sick and suffer from lungs diseases. If you are a non-smoker, you will certainly get lower insurance rates. But if you are an active smoker, you must try to quit. 

7. Prefer Buying a Joint Insurance Policy

Most people in the UAE prefer buying joint life insurance policies as they are much cheaper in comparison to individual life insurance policies. The major reason behind this is that these life insurance policies follow the first-to-die strategy. This means the insurance company will cover the partner who dies first and provide the sum assured to the policy member who is alive. 

Make sure you let your policy member know that they need to take a new insurance policy as soon as this one ends and after they get the sum assured. They may need to pay a higher insurance premium at an older age. 

8. Choose Annual Premium Payment Option

Life insurance companies in the UAE offer different payment options for the policyholders. You can choose a monthly, quarterly or yearly payment option based on your financial preferences. However, some insurers also charge some additional fees for choosing a preferred payment option. If you can afford to pay in one installment, you must opt for an annual payment plan as it comes with lower insurance premiums in comparison to the monthly payments.

9. Do Not Forget to Renew your Insurance Policy

Not renewing your insurance policy on time may cost you even more. In case your insurance policy expires or lapses, you may have to buy a new one and go through the entire application process again. And in such a situation, you may need to pay the new insurance premium based on your current age. So buying a new insurance policy would be an expensive affair. Although most insurance companies send reminders to their customers for the policy renewal, you should also ensure to set a reminder for the concerned date. All you need to do is make sure that your policy gets renewed on time. In case you are not satisfied with the insurance services provided by your current insurer, you can port your insurance policy to another provider rather than letting it lapse.

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10. Stay Aware of Extras

Most life insurance policies in the UAE offer add-ons to add more value to the policy benefit. One of these add-ons is a critical illness cover. You can add a critical illness cover for the diseases or illnesses that are not covered in your insurance policy. The insurance companies offer these covers to help policyholders get quality treatment if they suffer from an illness not covered in their regular life insurance policy. The other add-ons include temporary disability cover, total or permanent disability cover, and more.

Conclusion

Now that you know how you can reduce your insurance premium and save money on your life insurance policy, you must start looking for a suitable insurance plan from today itself. You can contact various insurers and go through their insurance plans with their features and benefits or save yourself a lot of time by simply giving us a call. Our insurance experts will analyse your financial needs and help you find a life insurance with savings plan in no time. 

You can also visit our website, go to the life insurance section, and use an insurance premium calculator to evaluate your premium amount in just a few clicks. The section also helps you explore more life insurance savings plans and make an informed decision. Find the plan of your choice and make no delay in buying it!

Krunal Gandhi
Krunal Gandhi0 Post

Hi there, myself Krunal Gandhi. I have five years of experience in the content industry and have worked in diverse fields such as sports, technology and education. I'm a sports enthusiast who loves watching Cricket and Tennis. I also like to watch web series and movies having good content – after all, 'Content is King' and it's applicable everywhere.