Buying a Life Insurance policy in UAE need not be an ordeal anymore! It’s more like buying peace of mind actually! Providing for your dependants even after your death, needs much thought. As it is an investment you make while living it should be considered seriously.
Here’s a guide 10 things to consider for Life Insurance in UAE.
Beneficiaries
If you have dependents, anyone who relies on you financially -your spouse, parents or children are the beneficiaries of your Life Insurance.
Life Insurance as an investment
Life Insurance is more than just an investment & helps your dependents to cover the costs of final expenses, outstanding debts and mortgages, planned educational expenses and lost income.
Your commitment
You commit to be honest with the insurer about your health and lifestyle in your application and to pay the premiums promptly. Withholding information could result in your insurer refusing a claim.
Coverage needed
Just try and work out how much cover you need and for how long. You should know what you want to protect, the needs of your dependents and, what you can afford to pay each month.
Get started sooner rather than later
It’s better to take out life insurance early without leaving it too late leaving loved ones with any financial burdens.
Major components of an insurance policy
The insurer – the insurance company
The owner – responsible for payments of the premium to the insurance company.
The insured – the person upon whose life the policy is based.
The beneficiary – the person, trust or any other entity which will receive the life insurance claim
Types of Life insurance
With Term Life insurance, the insurer gives you insurance cover for a fixed term determined by you and pays out a fixed sum on death or terminal illness.
Permanent or Whole of life insurance assures that the insurer will pay out a cash lump sum to the family (or beneficiaries) on death of the policy holder rather than within a fixed time frame.
Joint life versus single cover
Insurance plans in UAE can be purchased as a single life or on a joint basis. Some joint policies may pay out only on the first death leaving the surviving partner without cover. Get separate quote for joint and single life cover before deciding.
Critical illness cover
Some insurance policies offer critical illness protection to your life insurance. The Critical illness cover is applicable if you’re diagnosed with a serious medical condition, like a heart attack, stroke or certain cancers during your policy term.
Review your cover regularly
When life goes on things will change like a change in job, a marriage, children, a bigger mortgage or divorce. This will affect the amount of cover you need, hence review your life insurance from time to time.
