Tuesday, June 11, 2024

Living in Dubai

Top 6 Benefits of Term Life Insurance in Dubai

Life is unpredictable. Insurance gives you the financial protection you need in case of unforeseen events. Having insurance ensures you are prepared for the unexpected, safeguarding your family, assets, and overall well-being. It’s a proactive step towards responsible financial planning, giving you an assurance that you and your loved ones are shielded from potential hardships. Among the different types of coverage, term life insurance in Dubai should be one of the top plans you should consider getting this year.

Term life insurance provides straightforward short and long-term coverage at affordable rates. It offers financial protection for your loved ones for a specific period in case of loss of life, critical illness or permanent disability.

The premiums of life term insurance do not increase over time like other plans. Because of this, you know exactly what you’re paying every month. It is also a practical choice if you’re looking for cost-effective financial security for your loved ones.

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Benefits of Term Life Insurance in Dubai

Below are the top benefits provided by life term insurance in Dubai:

Benefits of Term Life Insurance UAE

1. It is Affordable

As mentioned, term life insurance rates are affordable, especially when compared with whole life plans. This is because the former provides coverage only for a predetermined period.

Additionally, short-term life insurance allows you to select the rate for a specific period to create a policy that works for you and your family.

These features make term life insurance more accessible for anyone on a tight budget.

It is also worth noting that if the insurer outlives the term and the policy expires, no death benefits would be awarded to the benefits, making this plan less of a risk to the policyholder.

2. It Provides Huge Sums

Although life term insurance is affordable, it offers huge sums. For instance, HAYAH, an insurance company in the United Arab Emirates, provides coverage of up to USD 50,000,000.

As premiums are typically lower than permanent policies, you can secure larger coverage amounts and provide substantial financial protection for your loved ones. This affordability and flexibility ensure you have access to substantial payouts to safeguard your family’s financial future without committing to a lifelong plan.

Life term insurance, therefore, is a strategic choice for maximising coverage while managing budgetary considerations.

However, to make the most of this benefit, you need to start thinking about obtaining this insurance at an early age to get additional advantages, such as lower premiums.

3. It is Customisable

As mentioned, life term insurance comes in different periods, usually ranging from one to 35 years. Policies with terms of five years or less can cover short-term debts or expenses, such as your child’s school fees or auto loan payments.

You can choose the term you think best suits your family’s short-term and long-term needs.

Also, you can add extra rider benefits to your policy. For instance, you can request severe illness coverage so that you can get help paying for unexpected expenses for covered eye treatments and other medical procedures.
You can add different rider benefits based on your needs and arrangement with your insurance provider.

4. It Can be Converted to Other Types of Insurance

Term life insurance plans come with conversion features, usually called convertible term policies, that allow you to convert them into whole life or universal life coverage.

This option is ideal if you are hesitant about committing to a long-term policy now but open to acquiring long-term and broader coverage in the future.

With this feature, you can select when and how to convert your terms, enabling you to change your coverage as needed. Since this policy is already in your plan, you don’t need to go through underwriting, making this process faster and more efficient.

If you want to convert or adjust your coverage, make sure you do it before the conversion date deadline, which you will find on your policy.

5. It is Helpful for Young Families

Since life term insurance covers only a particular period, it is highly recommended for young families looking for short-term coverage.

With this option, you can get an insurance plan to cover the period your family depends on you financially. You can then lower your coverage when your children become independent.

In terms of payout, your family or beneficiaries will receive a guaranteed lump sum payment. They can also choose to receive this either in a lump sum or in fixed monthly instalments.
Regardless of which option your beneficiaries choose, they will get help with their financial needs even if you are unable to provide for them.

6. It is Straightforward

Term life insurance is a straightforward way to ensure your loved ones still receive financial support even when you are unable to provide for them.

This type of coverage is easy to understand: As long as you pay the premium, you are covered for the duration of the policy. Your beneficiaries will receive the payout when it is activated.

With this plan, you only need to think about how much coverage you need, how long you want the policy to last and which insurance provider you want to work with. Once you have figured these out, you can iron out the details with a staff.

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This new year, prioritise your peace of mind. Take a step towards a resilient and confident future by investing in term life insurance.

Dubai Explorer

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