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Top 7 Benefits of Buying Term Insurance in UAE

By PolicyBazaar
  | Published: 21 March 2020 | Last Updated On: 08 February 2021

Buy a term plan and secure your family

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

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The investment trends within the past couple of years have changed extensively. People these days emphasize on building a career initially and prefer getting married in the later stages of life. Furthermore, mortgage and home loans stretching over long term roll over the age of retirement. Investors should always understand that their responsibilities and duties for their dependents might not end once they are retired instead it would become difficult to take care of financial needs as there would be no source of direct income. 

In order to counter the issue mentioned above, a lot of people choose long term insurance in UAE. While purchasing any sort of insurance or investment tool, one should thoroughly assess their requirements and needs and then make the decision. The policy period in case of term insurance plans can be chosen by the applicant on the basis of their requirement. Term insurance plans offer death benefit in case of any event leading to the demise of the policyholder, hence it is suitable to go for long term insurance coverage especially for applicants that are young in age. 

Back in time, traditional term insurance plans offered coverage till the age of 60 or a maximum of 65. However, with transitions in the insurance sector providers have come up term insurance in UAE that offers coverage till the age of 85- 90. If you are the sole breadwinner of the family with dependents then it is highly recommended that you purchase long term insurance in UAE. With the right long term insurance in UAE, you can make sure that your loved ones don’t have to struggle for their day to day needs after you are not around to look after them. Although term insurance plans have numerous benefits, in this thread we’ll be covering the top 7 benefits of term insurance in UAE. 

Affordability

Term insurance plans are the most basic and simple insurance products when compared to other options. The payable premium in case term insurance in UAE is much lower than other insurance plans which extensively contribute to the popularity of these plans. Moreover, the frequency of payment can be chosen by the applicant on the basis of their requirement. The affordability of term insurance in UAE makes them an ideal choice for all classes of society.   

Whole of Life Coverage

Term insurance plans are an absolute must for if the applicant is the sole breadwinner of the family. Life is extremely uncertain and none of us aware of what happens the very next moment, in order to secure the future of your dependents term insurance in UAE is imperative. Death benefit received from the term insurance plan will help your dependents to maintain the same lifestyle even when you won’t be around to take care of their needs. However, for stronger comprehensive protection to safeguard your loved ones, whole life plans that provide coverage till the age of 99 are suitable. 

Secure Your Family’s Future and Goals

The majority of people prefer buying term insurance in UAE for a period of 40 years or more in order to make sure that they can fund their children’s education and marriage, spouse’s healthcare so that their loved ones can spend the rest of their lives peacefully. Term insurance in UAE helps the policyholder to make use of their potential to the fullest during the economically productive years of their lives without worrying about the future. 

While choosing the policy period and coverage of the term insurance in UAE one should take into consideration various factors like child’s education, marriage, health care and medical expenses of the spouse. Applicants can start off by writing down the long term goals of their family followed by the time period in which they are to be accomplished. Once you are done with assessing the goals and the time required to accomplish them you can analyze the amount of money it would require and choose the term insurance plan accordingly. Term insurance plans in the UAE help buyers to support their family members in accomplishing their goals even when they are not around. 

Cover financial liabilities

During the course of economic productivity, people tend to indulge in multiple liabilities like mortgage, car loan, etc. Ideally, people should pay and clear these outstanding liabilities as soon as possible. However, if the debtor passes away and the family is left with the burden of outstanding financial obligations the insurance provider will pay for the liabilities. Term insurance in UAE arms dependents of the insured against unforeseen events. 

Benefits of Term Insurance for Nuclear Families

In today’s era, the concept of joint families is shrinking, more and more people prefer staying in nuclear families. In the case of nuclear, the only support system is the sole breadwinner of the family who is responsible for handling all sorts of financial constraints that arise. If the sole breadwinner of the family does not have a term insurance plan in place, consequences can be devastating. Term insurance in UAE helps the insured party to deal with all financial repercussions even in their absence. 

Death Benefit

The most basic benefit obtained from term insurance plans is the death benefit that is paid in case of any unforeseen event that might lead to the demise or permanent/temporary disability of the policyholder. Death benefit refers to the amount paid by the insurer to the nominees after the demise of the policyholder. 

Rider Benefit

Term insurances in UAE come with the option of add-on riders that are meant to enhance the protection and utility of the basic plan. Insurance seekers can opt for riders by paying an additional amount over the basic premium of the insurance plan. There are several riders available one can choose add-ons on the basis of their requirement, for instance, people involved in jobs that require driving across long distances should opt for personal accidental coverage. 

Conclusion

As a general thumb rule, it is advised that one should buy term insurance in UAE with coverage almost 8 times their current annual income. All in all term insurance in UAE are absolute for everybody in order to protect their families and loved ones against the strokes of uncertainties.