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Life Insurance For People Over 50

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Life insurance certainly plays a crucial role when it comes to the financial security of your family. This type of insurance fundamentally provides your family with financial protection in case of any unfortunate events.

The UAE, with its dynamic insurance market, offers a range of life insurance options tailored to meet the diverse needs of its residents. Whether you are an expatriate or a national, you can easily get life insurance policies that offer comprehensive coverage against the uncertainties of life such as death, critical illness, and disability.

Why is Life Insurance Important for People Over 50 Years?

Life insurance is crucial for individuals over the age of 50 years due to several reasons. It provides financial security to cover any existing debts, such as mortgages and loans, ensuring that their dependents are not burdened with such obligations in case of the policyholder’s demise.

Life insurance also allows seniors to leave a legacy for their beneficiaries, offering a means to support their families or contribute to charitable causes. Moreover, life insurance can supplement retirement income or serve as an inheritance for future generations.

Finally, as health risks increase with age, obtaining life insurance earlier guarantees coverage at more affordable rates. Thus, securing life insurance becomes a prudent step in protecting one's financial well-being.

What are the Benefits of Life Insurance for People Over 50?

There are multiple advantages of having a life insurance policy, especially for people who are aged above 50 years -

  • Financial protection for dependents: Life insurance provides a financial safety net for one’s loved ones in the event of their unfortunate death. This type of insurance can help replace lost income, pay off debts, cover funeral expenses, and ensure that your family's regular financial needs are met even under any unfortunate circumstances. 
  • Income replacement: If an individual is the only breadwinner in their family, having life insurance can help replace their income in their absence. This way, one can ensure that their family continues to maintain their standard of living even after their untimely death. 
  • Coverage against debt repayment: With a life insurance plan, the policyholder can ensure that their outstanding debts such as mortgages, car loans, credit card debts, or student loans will be covered in case of their demise. This can alleviate the financial burden of their family and save them from inheriting the policyholder’s debt. 
  • Supplement retirement savings: Some types of life insurance (such as permanent life insurance) accumulate cash value over time. This cash value can be accessed during your lifetime and used to supplement your retirement savings or cover unexpected expenses. 
  • Affordable coverage: As mentioned earlier, you can find various types of life insurance plans in the UAE as per your specific requirements and budget. With term insurance, for example, you can get death benefits at quite affordable rates compared to whole life insurance plans.

Note: Term insurance premiums usually increase with an increase in the entry age. Compared to younger individuals (under the age of 25 years), those above the age of 50 will get term insurance at significant;y higher rates. However, even at these rates, the benefits offered by term and life insurance plans certainly outweigh the costs! 

  • Peace of mind: Perhaps the most significant benefit of life insurance is the peace of mind it brings. Knowing that your loved ones will be financially protected and cared for in case of any adverse circumstances can provide a sense of security. 

How to Choose the Best Life Insurance for People Over 50?

In order to select the most suitable life insurance plans for individuals above the age of 50, you must -

1.) Know Your Needs and Requirements

It’s pretty essential to know your financial goals when selecting the most suitable life insurance plans. By knowing your objectives, you can align your insurance coverage with your specific needs.

Whether you aim to provide financial security for your family, have coverage against debts, or fund your children's education, your goals will determine the appropriate coverage amount and policy type.

Having clarity on your financial goals allows you to assess different life insurance options such as term, whole life, or universal life insurance, and choose the plan that best matches your objectives. This ensures that you make an informed decision, maximising the benefits and protection offered by the chosen life insurance policy.

2.) Analyse the Number of Dependents along with the Insurance Amount You Need

Determining the number of dependents is crucial when selecting a life insurance plan. The number of dependents directly affects the amount of coverage required to protect their financial well-being in the event of your untimely demise. If you have multiple dependents, such as a spouse, children, or elderly parents, you may require a higher coverage amount to ensure their ongoing financial stability. In addition to that, the ages and specific needs of your dependents will influence the type of policy you choose. 

3.) Look for Life Insurance Plans

Check for multiple providers while selecting a plan. This way, you can access a wider range of options and find the most suitable coverage at competitive prices. Different insurance companies offer varied policy features, benefits, and pricing structures. By exploring multiple providers, you can compare their offerings, terms, and customer reviews to make an informed decision. 

This process of comparison can help you uncover potential discounts, additional riders, and policy customisation options that you may miss otherwise. As a result, you can easily find the best life insurance plan that meets your unique needs without exceeding your budget. 

4.) Compare All the Providers

Comparing several providers allows you to explore a range of options and find the most competitive rates, terms, and benefits. By comparing insurance providers and their plans, you can evaluate their financial stability, customer service reputation, and claims settlement track record. 

This process enables you to make an informed decision and choose a trustworthy insurer that aligns with your specific needs. Additionally, it also helps you uncover any unique features or riders that they offer, letting you tailor the plan to your requirements. 

5.) Select a Comprehensive Plan

Selecting a comprehensive life insurance plan is essential for securing comprehensive financial protection. Such plans offer a wide range of benefits including death benefits, cash value accumulation, and additional coverage options like critical illness or disability riders. 

By opting for a comprehensive plan, you can address multiple financial goals simultaneously such as providing for your family's future, building a cash value component for emergencies or retirement, and safeguarding against unexpected health issues. 

The versatility of comprehensive plans ensures flexibility and adaptability to changing circumstances, making them ideal for long-term financial planning. By choosing a comprehensive life insurance plan, you can maximise the coverage and ensure holistic financial protection for yourself and your loved ones.

Which Factors Affect the Life Insurance Premium for People Over 50?

Here are a few primary factors that influence the life insurance premium for people over 50 -

1.) Age

Insurance experts always recommend buying term insurance at an early age - it is a wise decision to get a policy once you start earning. This is because policy premiums tend to get higher as you grow older.

The primary reason is that at an older age, you are more likely to develop health issues compared to younger individuals. To compensate for the risk, you would be charged higher premiums. 

2.) Occupation

Your occupation plays a major role in deciding the premium of your life insurance. For instance, if you have a job that involves risks such as mining, factory work, and others, you are more likely to be charged with higher premiums.   

3.) Present Health Status

Your current health condition has a significant impact on your life insurance premium. The reason behind this is that insurance companies charge higher premiums for those who regularly drink and smoke. Other than this, if you have any diseases such as heart problems or diabetes, even then your premium will be high - these health issues deteriorate the condition of your body and may reduce your lifespan. 

4.) Tenure of the Policy

The tenure of a life insurance policy can have a significant impact on the premium amount. Generally, the longer the policy tenure, the higher the premium will be. This is because a longer tenure increases the risk for the insurance company, as the probability of the insured individual passing away during the policy period increases. To compensate for this increased risk, the insurance company charges a higher premium. 

On the contrary, shorter policy tenures result in lower premiums as the risk for the insurer is reduced. Thus, when considering life insurance, it's essential to balance the desired tenure with the affordability of the premium.

5.) Frequency of Your Premium Payment

The frequency of premium payments for a life insurance policy can also impact the overall premium amount. Typically, insurance companies offer different payment frequency options, such as annual, semi-annual, quarterly, or monthly. 

Opting for a frequency of premium payments, such as monthly or quarterly, often leads to higher premium amounts. This is because more frequent payments may increase administrative costs for the insurance company. 

On the other hand, choosing an annual or semi-annual payment frequency usually results in lower premiums since it reduces administrative expenses. However, it's crucial to consider personal budgeting preferences and cash flow when deciding on the frequency of premium payments. 

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